PRISM: Prioritizing Your Goals

Reflect  

Now that you've recognized your individual risk tolerance, we discuss how you can use your results to determine an appropriate allocation model. In this lesson, we focus on how to minimize systematic and idiosyncratic risk with an effective allocation strategy and proper diversification.

Engage  

We ask that you watch the video, download and fill out the, "Recognizing Your Allocation" worksheet which is linked below, to learn how to use your risk tolerance to your advantage. Filling out the worksheet will help prepare you for the debut of Step 3: Identifying Your Investment Management Preferences.

In the discussion thread below, we encourage our members to share their results from their allocation worksheet and also their perspective on diversification as a whole.

1. How diversified are your portfolios? Think back to when you first started investing, has this changed over the years?​
2. What types of investments is your portfolio most allocated toward? Stocks, bonds, etc.? Please share.

Example:  

1. Right now, my portfolio is not as diversified as I would like. Since I am considered an aggressive investor, I should be more allocated towards stocks. I am a relatively new investor, so this has not changed.
2. Right now I have a few ETFs focused on large-cap stocks in my portfolio; however, I would like to include more of a variety of small and mid-cap stocks as well as bonds. I currently don't have any emerging market or international stocks in my portfolio.

Link to the Recognizing Your Allocation Worksheet

Reflect  

Now that you've recognized your individual risk tolerance, we discuss how you can use your results to determine an appropriate allocation model. In this lesson, we focus on how to minimize systematic and idiosyncratic risk with an effective allocation strategy and proper diversification.

Engage  

We ask that you watch the video, download and fill out the, "Recognizing Your Allocation" worksheet which is linked below, to learn how to use your risk tolerance to your advantage. Filling out the worksheet will help prepare you for the debut of Step 3: Identifying Your Investment Management Preferences.

In the discussion thread below, we encourage our members to share their results from their allocation worksheet and also their perspective on diversification as a whole.

1. How diversified are your portfolios? Think back to when you first started investing, has this changed over the years?​
2. What types of investments is your portfolio most allocated toward? Stocks, bonds, etc.? Please share.

Example:  

1. Right now, my portfolio is not as diversified as I would like. Since I am considered an aggressive investor, I should be more allocated towards stocks. I am a relatively new investor, so this has not changed.
2. Right now I have a few ETFs focused on large-cap stocks in my portfolio; however, I would like to include more of a variety of small and mid-cap stocks as well as bonds. I currently don't have any emerging market or international stocks in my portfolio.

Link to the Recognizing Your Allocation Worksheet

Reflect  

Now that you've recognized your individual risk tolerance, we discuss how you can use your results to determine an appropriate allocation model. In this lesson, we focus on how to minimize systematic and idiosyncratic risk with an effective allocation strategy and proper diversification.

Engage  

We ask that you watch the video, download and fill out the, "Recognizing Your Allocation" worksheet which is linked below, to learn how to use your risk tolerance to your advantage. Filling out the worksheet will help prepare you for the debut of Step 3: Identifying Your Investment Management Preferences.

In the discussion thread below, we encourage our members to share their results from their allocation worksheet and also their perspective on diversification as a whole.

1. How diversified are your portfolios? Think back to when you first started investing, has this changed over the years?​
2. What types of investments is your portfolio most allocated toward? Stocks, bonds, etc.? Please share.

Example:  

1. Right now, my portfolio is not as diversified as I would like. Since I am considered an aggressive investor, I should be more allocated towards stocks. I am a relatively new investor, so this has not changed.
2. Right now I have a few ETFs focused on large-cap stocks in my portfolio; however, I would like to include more of a variety of small and mid-cap stocks as well as bonds. I currently don't have any emerging market or international stocks in my portfolio.

Link to the Recognizing Your Allocation Worksheet