Hi Karl,
Thanks so much for participating! You're right, my results surprised me as well. At first, I thought I would need to take a moderate-conservative approach for one of my main goals; however, when I started to break the goal down into the various sections of the worksheet, I found I could be more aggressive with my approach. That is interesting you found that as well! Now that you've found your results,
Lesson 8 does a full walkthrough of the worksheet in case you want to learn a bit more.
I think you'd find it valuable to attend our webinar next week, January 13th at 7:30 p.m. CST.
You can click here to register for the event. The webinar will focus on taking your risk tolerance results and how to allocate your portfolio with this new knowledge.
If you have any questions please let me know. Take care, Karl!
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Jenna Brashear
AAII Community Manager
Chicago, IL
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Original Message:
Sent: 01-01-2022 16:04
From: Karl Markey
Subject: Step 2 - Lesson 7: Understanding Your Risk Tolerance
The process of breaking down retirement needs into goals and then assessing the risk for each has been instructive. All of my goals are currently either aggressive or moderate; nothing landed on the in-between boxes. Compared to the common recommendations for basic allocation split between stocks/bonds and where I am relative to retirement age, I was a little surprised see how much weighting it looks like I should place toward an aggressive portfolio. A few months ago before I started to learn more seriously about portfolio management, I thought I would need to take an unusually aggressive position out of pure need. However, taking the more structured bottom-up approach here shows me that a fairly aggressive overall portfolio at this point is reasonable based on logic rather than what felt a little like desperation.
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Karl Markey
Original Message:
Sent: 12-30-2021 15:57
From: Jenna Brashear
Subject: Step 2 - Lesson 7: Understanding Your Risk Tolerance
Reflect
Now that you've taken the time to fill out both sides of your worksheet, it's time to reflect on your results. In the video lesson, we explain how to appropriately allocate equity based off your risk tolerance classification. You may have different risk tolerance for different goals; that's why it's important to fill out separate assessments for each one. This is an important time to reflect before we delve into allocation strategies in the next portion of Step 2.
Engage
We ask that you watch the video, fill out the bottom of your risk assessment questionnaire and then respond with your results. Note: Please fill out a separate risk assessment questionnaire for each of your goals.
In the comments, we encourage our members to share their results from their own risk assessment questionnaire as well as consider these two questions:
- After filling out the bottom of your worksheet, what was your result? Are you on in-between a result as conservative-to-moderate or moderate-to-aggressive?
- Are you surprised at your results? Has your idea on your overall risk tolerance changed after completing the worksheet? Please share your opinions below.
Example:
- After filling out the bottom of your worksheet, what was your result? Are you on in-between a result as conservative-to-moderate or moderate-to-aggressive?
- Are you surprised at your results? Has your idea on your overall risk tolerance changed after completing the worksheet? Please share your opinions below.
LINK TO THE RISK ASSESSMENT QUESTIONNAIRE WORKSHEET
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Jenna Brashear
AAII Community Manager
Chicago, IL
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