Today I’m going to dive into one of the most crucial (and one of the most misunderstood) financial concepts: risk tolerance and asset allocation.

First off, what exactly is risk tolerance? How does each individual define it for themselves? I’ll pass along insights from my early days in the industry and tell you how traditional approaches often mislead investors about their actual risk tolerance. I’ll also tell you how asset allocation is not a static strategy, but rather a dynamic one that should evolve with your own personal circumstances and the broader economic environment.

You know by now that I’ve always advocated for a more personalized approach so that your investments genuinely reflect your financial goals and risk appetite. Want to learn more? Then do NOT miss today’s episode of CAPitalize Your Finances!