Comments on: Investment Risk Profiles

By: Risk Capacity and Risk Tolerance Are Different Beasts » The Dividend Guy Blog

Fri, 25 Apr 2008 11:12:29 +0000

[...] tolerance is typically divided into classifications such as conservative, balanced, or aggressive. Each level helps to determine what percentage of equities to hold and essentially helps to balance [...]

By: The Dividend Guy Investment Process Part 2: My Risk Profile » The Dividend Guy Blog

Sun, 13 Jan 2008 15:03:22 +0000

[...] a definition of the most common risk profiles, see this post here. There are a lot of tools on the web to help determine risk profiles, but the one that I like the [...]

By: Aaron

Aaron — Fri, 28 Dec 2007 01:10:10 +0000

I think I fit in this somewhere in the growth area. I am not terribly aggressive, but I also don’t want to be too conservative at a young age. I think at a young age being very conservative is actually risking a lot of lost capital appreciation potential.

By: WhereDoesAllMyMoneyGo

WhereDoesAllMyMoneyGo — Thu, 27 Dec 2007 17:37:23 +0000

I am also of the opinion that the general risk tolerance profiles commonly used are “off”. In addition to the point you make, I think that many new investors overestimate their ability to tolerate losses. Things “feel” a lot different when it’s YOUR money going down 30% – all of sudden those charts and stats seem to lose some credibility!

It might be part of the reason so many newer investors sell at precisely the wrong times…

By: Jake

Jake — Thu, 27 Dec 2007 15:43:01 +0000

I know a 73 year-old guy that invested in stocks and closed-end funds up until this year. Now he has sold all his stocks and put everything in indexed equity funds and indexed ETFs. He read Bogle’s book on Common Sense Investing and declared it one of the best books ever on investing.

I guess the point I am making is that this guy has been very successful in the market and even at 73, he is not going conservative. He is looking to enhance his investments by continuing to learn and invest in new ways.