In our advisory work, we find two perspectives provide the basis for determining a level of exposure to investment risk appropriate for each client: capacity to take on investment risk and willingness to take on that risk. While capacity can be seen as more quantitative in its basis, an assessment of risk tolerance generally is more qualitative. Results from those two perspectives often don’t match, which is why we continue to find regular discussions with regard to investment risk well supportive of progress toward financial goals.

Listen to this month's podcast from CIO Mark Mowrey:

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