This why your risk tolerance isn’t what you think

Jan 16, 2020

The first question a financial advisor often asks is: ‘What is your risk level?’.

The first problem is that most of us have no idea!

Most folks end up saying: ‘Um, about average, like everyone else?’.

The second challenge is that your risk tolerance will tend to fluctuate with whatever’s currently happening.


Because when the stock market has fallen by 50% and the media is running a series of doomsday headlines, then you’re unlikely to be thinking ‘Wow, what a great time to put a lot of money into the market!’ (it often is, by the way).

One of the dubious advantages of being British is having lived through several brutal recessions in our famously boom-bust economy.

What I can tell you is that when things really go to the wall, you’ll find your risk tolerance is much lower than you think it is.

I’m not saying that to be smart – it impacts even the most hardened of investors.

It’s easy to have a calm idea about what you’ll do when the next downturn comes in theory; in practice it’s much harder to execute in real time.

The facts speak for themselves: people hate investing in turbulent markets, even when they’ve become cheap!

I discussed this a little further in the short video here

Whenever you’re ready… here are 4 ways we can help you manage your own money and go next level wealth:

  1. Boom or Bust in 2021 – 20 minute online workshop for investors

Register for my next free online training - Boom or Bust? How to change your investment plan for 2021 - book in here

  1. Subscribe to our Top 100 Podcast for Investors

 Listen in to our new podcast - The Low Rates High Returns Show - Apple Spotify , SoundCloud

  1. Join our Implementation Program

We’re putting together a new coaching case study group this month for private investors. If you’d like to get the plan, tools and timeless principles for managing your money and creating next level wealth … just send an email to [email protected] with the word “Case Study” and we'll get you more details.

  1. Work with me privately

If you’d like to work directly with me and Stephen Moriarty directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”… tell me a little about your situation and what you’d like help with, and we’ll get you all the details!