Have you reassessed your risk profile to reflect your life changes?
Doug Goldstein, CFP, director of Profile Investment Services, Ltd. and The Money Guys, Brian Preston and Bo Hanson, discuss how to assess your changing risk tolerance and risk capacity over time.
"How much risk can your situation handle?" is a very different question than "How much risk can you handle?"
There's a significant difference between risk tolerance and risk capacity. Learn what the difference is, and how to adjust your portfolio and emotional expectations for both.
Given enough time, the markets may recover, but do you have enough time in your own plan to recover from potential loss?
Are your comfortable with your risk profile? Make sure to periodically check in with your financial advisor as your life changes. Major lifestyle events (new children, job, marriage, etc.) can trigger the need to update your risk tolerance. So the next time you change your status, make sure to alert your financial advisor, in case an adjustment in your investment strategy is in order.