Broker Check

Risk vs Reward does not just apply to investing

October 18, 2021

I realize the title of this blog might generally be considered a no-brainer to most people.  We all make decisions in our lives where we must balance the amount of risk we take for the reward we will receive.  This concept applies to big and small decisions alike.  I stumbled across a very interesting article that highlights risk vs reward as it applies to new thinking on Aspirin and its uses to deter both cardiac events and strokes.  According to the article, recently updated guidance from the U.S. Preventive Services Task Force suggests the risk of taking aspirin as a preventative measure, may bring more risk than reward for people who have not yet suffered a cardiac event or stroke.  The guidance for taking low-dose aspirin remains the same for those who have already had a heart attack or stroke.  Through experience and evidence, some in the medical community seem to be changing direction when recommending aspirin for patients.  You can read the full article here. Aspirin Advice Shifting Article

This article got me thinking about how investment risk tolerance changes for clients over time as well.  Often times client attitudes change toward investment risk based on experiences along with current economic and market conditions.  Unfortunately, client portfolios aren't updated to reflect the new outlook.  This is one of the main reasons I use Riskalyze.  Riskalyze is a risk assessment tool that helps me to align client investment portfolios with their comfort zone or Risk Number.  If you have yet to complete or even if it has been a while since you've completed a Riskalyze questionnaire, I encourage you to either contact the office for a personalized link or visit our website and click on the What's Your Risk Number? button at the top of the page to begin.  This will be a great way to ensure we are on the same page about the alignment of your investments with your current outlook.

As always, should you have questions or if we can be of service to you, please contact the office.  We welcome the opportunity to visit with you.