Did you know that humans are twice as concerned about avoiding losses as they are about achieving investing gains?
That means investment losses hurt a lot.
You’ve probably heard that the worst thing you can do during a downturn is sell, but did you know the psychology behind that impulse? It’s called loss aversion.
It’s one of the reasons why people can sabotage their investments by selling when they get scared, missing the recovery, and then buying back in once they feel “safe” again.
Understanding and leveraging human psychology is one of my most important jobs as an adviser.
My approach uses the Risk Number®, based on Nobel Prize-winning research. Together we can quantify how much risk you want, how much risk you currently have, how much risk you need to reach your goals, and how much risk you should take on.
Your Risk Number® is like a speed limit. Some people are comfortable driving fast while others want to go slower.
I’d like to help you determine your comfort zone and use it to manage your investments so you can rest assured that your investment strategy truly reflects your Risk Number®.