"THERE ARE RISKS AND COSTS TO A PROGRAM OF ACTION. BUT THEY ARE FAR LESS THAN THE LONG-RANGE RISKS AND COSTS OF COMFORTABLE INACTION." -
JOHN F. KENNEDY
At Wealth Alliance we believe an individual’s true risk profile comprises of three key components:
- An individual’s psychological willingness to take risk, sometimes called ‘risk attitude’.
- An individual’s financial ability to take risk, or ‘risk capacity’. Ability relates to clients financial circumstances and investment goals.
- An individual’s need to take risk. This includes the need to accept risk to meet an objective, avoid falling short of a goal or having wealth eroded by inflation.
Attitude, capacity and need are discussed at length with you to ensure all three components are considered when making a financial plan.