Risk Management
Risk management is the process of identification, analysis, and acceptance, or mitigation, of uncertainty in financial and investment decisions. The management of risk includes both personal and financial risks; the loss of income due to unemployment or disability, divorce, catastrophic loss, and death are some examples.
There are four techniques for managing risk: avoidance, reduction, retention, and transfer. Not all risk requires acceptance. Determining what risk is acceptable and what risk to avoid or transfer is part of the financial planning process. One way we strive to serve our clients is by helping to design a course of action that seeks to protect you today and tomorrow.
HOW WE SERVE YOU:
- Policy review and analysis
- Wealth preservation planning
- Income replacement and protection
- Long-term care planning
- Disability income planning
HOW DOES RISKALYZE WORK?
Riskalyze is a tool that we use to help measure the risk tolerance of our clients. By understanding a client’s risk tolerance, we are better able to serve each individual in the financial planning process.
RISK ASSESSMENT
The first step is to answer a five-minute questionnaire that covers topics such as portfolio size, top financial goals, and what you are willing to risk for potential gains. Then we will pinpoint your exact Risk Number to guide our decision-making process.
PORTFOLIO ANALYSIS
It turns out that four out of five people have more risk in their portfolios than they had previously realized. The next step in the risk analysis process is to review your current investments to determine if they are a good fit for your risk tolerance.
After pinpointing your Risk Number, we will craft a portfolio that aligns with your personal preferences and priorities, allowing you to feel comfortable with your expected outcomes. The resulting proposed portfolio will include projections for the potential gains and losses that we should expect over time.
FINANCIAL MAP
By building a portfolio that is specific to your risk preferences and financial priorities, we are able to help you understand the financial planning process and how to meet your goals.