At Lindsey Wealth Management, we believe that investment management starts with managing risk. There are three components that need to be analyzed:
- Personal Risk Tolerance
- Portfolio Risk
- Reaching Your Goals
How do we analyze each of these risks?
Personal Risk Tolerance
Lindsey Wealth Management has a questionnaire designed on Noble Prize-winning behavioral framework. We replace terms like “conservative” and “aggressive” with a Risk Number. This gives you and Lindsey Wealth Management a quantitative way to establish the correct amount of risk for your investments. Using patented Risk Fingerprint technology, you start with a mathematically based risk assessment survey based on their actual investment amounts. This allows you to factor in upside gains and downside losses in real dollar amounts, as well as percentages at the same time. The result is a risk number between one and 99 that pinpoints their exact comfort zone for downside risk and potential upside gain. This establishes the baseline risk number for your portfolio.
Once your risk number is established, Lindsey Wealth Management builds a corresponding investment portfolio and charts a clearly defined path to your goals. If you have current investments, we can analyze those to see how much risk you are taking. To us, it only makes sense to have your personal risk number and portfolio taking on the same amount of risk.
Reaching Your Goals
Lindsey Wealth Management wants everyone to reach their goals. The reality is that while some will reach those goals without much sacrifice, some will have to make significant changes. This may include saving more or working longer. The sooner you establish a plan to reach your goals, the easier it is to make adjustments.
Lindsey Wealth Management believes that it should be a two-way street holding both the client and Lindsey Wealth Management responsible for the investments. You agree to the restraints that you put on the investments with your risk tolerance, and we agree to be able to produce the results. That is why we give our client’s an Investment Policy Statement showing your requirements and expectations for us. Go ahead and take our Risk Analysis!