Risk Management

Make Better Investments by Assessing Your Risk

Investing your hard-earned money can increase your cash flow with greater acceleration than depositing it in a low-interest savings account. However, when mining in the realm of investment, reaching gold requires careful consideration of your short and long-term financial goals. Without adequate knowledge in the area, you’re at an increased risk at losing some or all of the money invested. Angell Capital Management is here to help get you on the right track, financially. The following information reveals how to assess your risk in order to maximize returns with a personalized investment portfolio.

What is Your Risk Number? Find Out Now.

What is Risk?

All investments involve some degree of risk or potential for financial loss. Depending on your demographics and psychographics, everyone’s risk is different in monetary pursuits. When assets increase in value, investors generate money by earning interest on what they set aside or by buying assets that increase in value. These assets can fluctuate greatly when stocks or commodities are traded on the stock market. Resultantly, there is risk and reward involved with the pursuit to generate money on assets. When investments depreciate or decrease in value, money can be lost. Other assets, referred to as long-term assets, will lose or gain value more slowly over time.

What Type of Investor Are You?

No single demographic or psychographic should be stereotyped into being a specific type of investor. When considering your own risk tolerance, it’s important to note that your financial future is entirely controlled by the decisions you make with money.

» The Aggressive Investor

An aggressive investor has a high risk tolerance and is willing to risk losing money for the chance at an increase in value. High risk financial choices are also known as growth investments and include securities such as stocks, bonds, mutual funds or ETFs.

» The Conservative Investor

A conservative investor has a low risk tolerance. They favor investments that maintain the original investment and its liquidity, meaning stable returns at a lower rate. These are known as income-producing investments that offer regular earnings such as monthly interest, quarterly dividends or rent payments. This goal can be achieved through bonds, real estate, dividend stocks and business investments.

Calculating Your Risk Number

Approximately 80% of investors carry more risk in their portfolios than they realize. Using our questionnaire is a powerful way to uncover your Risk Number, a quantitative measure for risk that’s unique to each individual. This value ranges from 1 to 99, 1 being extremely fiscally conservative and 99 being most risky. At Angell Capital Management, we take the following factors into consideration to calculate your Risk Number and build an optimized portfolio that fits your personal tolerance and goals:

  1. How much risk you’re willing to take on
  2. How much risk you currently have in your portfolio
  3. How much risk is needed to reach your goals

Riskalyze tool is one of the fastest growing ways to take hold of your finances and be empowered as a fearless investor. To find your Risk Number, use our click the button below.

Crafting Your Best Investment Strategy

Once your risk number is uncovered, our financial experts at Angell Capital Management will help you set up an investment portfolio within a 95% probability range. We stress test your new portfolio, visualize expense ratios, discuss the probability range, and set expectations for the future. This way, tracking progress is easy as you can be sure that any six-month result that falls within this range is on track for meeting your goals. Our clients become confident and empowered investors who experience real-life monetary gains.

How to Invest Based on Your Risk Number

Using Riskalyze, we run a series of simple mathematical assessments to calculate how much you’re willing to risk for a chance at a specific gain. This puts you in charge of an objective outcome where the results can change as life does. With careful analysis of the results, Angell Capital Management financial advisors reveal the short and long-term possibility for reward no matter the conditions of the market.

Balancing Risk vs Reward

People are far more likely to be concerned with potential financial losses than they are with achieving gains. Although a good balance is the best place to invest from, you don’t want to sabotage your own investment by selling based on fear just to buy back in at high prices. Angell Capital Management will use your Risk Number to help you find a sustainable mix between being the conservative and aggressive investor. If you have a financial goal with a long time horizon, it may be achieved by investing in higher risk assets. With short-term financial goals, lower risk cash investments are best. Investors should take the maximum amount of risk as is appropriate for their situation.

Diversify Your Investment Portfolio With Angell Capital Management

Diversifying means spreading investments across different industry sectors and securities to protect the value of your overall portfolio. At Angell Capital Management, our financial advisors know how to diversify to prevent a situation where one failing security or market sector brings down an entire portfolio. We will use your Risk Number to craft a unique, diverse investment portfolio that yields profit while staying within your 95 percent probability range. Contact us today to find your Risk Number and become an empowered investor for life.

Angell Capital can help you construct a strong portfolio