Are You Taking On Too Much Financial Risk?

The Principle:

There comes a time when you want less and less financial risk, but when? And do you really know how much risk you currently have? We’ll take a look at those questions and help you determine if you’re putting your portfolio at risk.

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

Just like at the theme park, when you get older you may start to avoid some of the roller coasters when it comes to your investments. The question is, do you need or want the financial risk currently in your life?

You have a lot of decisions to make, such as where to get your income from in retirement. Lately, we’ve had a bull run for well over ten years. People start to get nervous when they think the market has to go down soon. When you look at the money you need, you may have to shift some of it to make sure you are secure in your assets.

Do you know how much risk you are taking? Are you being overly cautious when you have a lot more time for the money to grow? Brian shares a client story of someone who was taking way more risk on than he was ultimately comfortable with.

Don’t forget to pay attention to your sources when it comes to financial information. Are you putting your trust in magazine articles or friends or a financial advisor? Make sure your comfort level to risk aligns with theirs.

Listen to the full episode or click on the timestamps below to hear a specific segment.

[0:24] – When do you start avoiding investment roller coasters?

[1:21] – As soon as you retire, you get more conservative.

[1:52] – Where should you take your money out of first?

[4:09] – People don’t know the risk they are taking.

[5:41] – Are you ever talked into bad investments by your friends?