Are Markets Keeping You Up At Night?


Guest Blogger: Andrew Horowitz, CFP, Horowitz & Company, Inc.

With markets becoming more volatile of late, are you feeling uncomfortable? It is natural for anyone to be concerned when his or her nest egg loses value. However, if your risk tolerance is not properly aligned with your portfolio allocation, you may end up buying or selling exactly at the wrong times.

For example, if your portfolio is arranged in such a way that it has a greater potential to show volatility and that keeps you up at night, perhaps you should consider moving out of some of the more aggressive investments. On the other hand, if you have a long-term time horizon and you are sitting on a hefty amount of cash, you may get frustrated by the fact that you are missing out on opportunities.

In order to assist you with bringing your specific tolerance for risk in-line with your portfolio positioning, Mission Financial Solutions (MFS) has developed a special risk assessment tool. The process is simple—you will be asked to answer a few risk-related questions to determine your risk tolerance level. From there, feedback and sample portfolio allocations are generated for your review. You can even adjust the level of risk, higher or lower, to see how the allocation may change.

Compass Rose Health Plan members have full access to all of the tools, articles and features of the MFS site. If you would like to check-up on your personal risk level and see how that compares to your portfolio, login to the Compass Rose Member Portal HERE. Once you arrive on the Mission Financial Solutions site, click on the PLANNING TOOLS tab for the Risk Tolerance Survey.

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