Dividend logo

Go to any financial planner, brokerage website or 401(k) survey, and there’s a good chance that asset allocation based on risk tolerance will be the first question you’re asked.

It’s a hallmark of the financial planning process. Figuring out how you will react to or feel about various market scenarios allows planners to adjust a portfolio of stocks, bonds and cash accordingly. It’s Financial Planning 101.

The problem is, many investors aren’t being truthful with themselves when it comes to filling out the survey to determine an appropriate risk tolerance. Sure, you may think your risk tolerance is “aggressive” or “moderate,” but behavioral data shows that many investors overestimate how much they are willing to lose. And that leads to poor investment decisions. For investors, figuring out what your risk tolerance really is, is key.

Check out these 5 apps that can help you hit your financial goals for retirement.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Stock%20market%20volatility
News

The Market Wrap for June 14: The More Things Change, The More They Stay the Same

This week continued the swings, albeit with less intensity as the previous month or so. Investors...

Premium Cyclical%20dividend%20stocks%20could%20still%20outperform
News

Cyclical Dividend Stocks Could Still Outperform

Heading into 2019, one thing was clear – boring stocks were finally taking flight. Thanks to a...

Portfolio Management

What Are the Different Types of Portfolio Rebalancing?

The majority of a portfolio’s risks and returns boil down to asset allocation. Over time, a...