PRISM: Prioritizing Your Goals

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Step 2 - Lesson 10: Gain Confidence in Your Allocation for the New Year With PRISM (Webinar)

  • 1.  Step 2 - Lesson 10: Gain Confidence in Your Allocation for the New Year With PRISM (Webinar)

    Posted 01-20-2022 15:35
    Edited by Jenna Brashear 01-21-2022 17:53

    If you happened to miss our last webinar: Gain Confidence In Your Allocation for the New Year with PRISM, we wanted to include it in order to wrap up Step 2 of the PRISM Academy. Our webinar was PACKED with everything you need to know about how risk tolerance will impact your overall allocation strategy and diversification. All three of these important concepts will serve as building blocks as we progress into Step 3: Identifying Your Investment Management Preferences.



    Reflect      

    Now that you've recognized your individual risk tolerance, chose an allocation model that fits your individual investor needs and learned about how to effectively diversify your portfolio, it's time to check in to see what we've learned. This discussion will serve as a reflective activity where we can consider where we started, where we are now and what we need to know to see progress.

    Engage  

    In this activity, please watch the webinar, fill out the outstanding worksheets linked below and consider these three questions:

    1. What changed about your risk tolerance from when you first started Step 2? Has it stayed the same or changed based off what you've learned?
    2. How do you feel about your allocation strategy? On a scale from 1-5 (five being most confident), how confident are you in adjusting your portfolio to meet this new allocation strategy?
    3. What is one type of investment you will be adding to your portfolio in the New Year to further diversify your portfolio and why?

    Example:  

    1. Before I began Step 2, I thought I would have a conservative risk tolerance. After going through the Risk Tolerance Questionnaire, I learned that I have an aggressive tolerance based on the timing of my goal as well as my personal psychological and financial risk factors. 
    2. I would put myself at a 4 - I now have a basis of what my allocation should be based on the AAII Allocation Models.
    3. I would like to add small-cap stocks and bonds to my portfolio in the next few months to further diversify my portfolio. 
    Additional Resources


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    Jenna Brashear
    AAII Community Manager
    Chicago, IL
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