If the last year has felt like a financial roller coaster, you're not alone. Market swings, interest rate shifts, and geopolitical headlines have all made for a bumpy ride. And while your long-term investment strategy might be sound, it's worth asking: Has your comfort with risk changed?
Risk tolerance isn’t just a number on a questionnaire, it’s about how you feel when markets drop, how confident you are in your financial plan.
Here are a few signs it might be time to revisit your risk tolerance:
- You’re checking your accounts more often than usual - and feeling anxious every time you do.
- You’re tempted to move to cash - even though your goals haven’t changed.
- You’ve had a major life change - a job move, retirement, or even just a change in priorities.
- You're no longer confident in your current investment mix - especially if you haven't rebalanced in a while.
Same Market, Different Perspective
A market correction in your 30s may feel very different than the same downturn in your 50s. If you're younger, you have decades to recover, and possibly even see a drop as a buying opportunity. But in your 50s, with retirement on the horizon, a big drop can feel like it's happening right when the stakes are highest.
Take this year as an example: many equity-based portfolios have seen swings of 10–15% or more, depending on exposure to sectors like tech or small caps. For someone in their 30s, that might feel like a temporary dip, or even a good reason to increase buy. However, for a 58-year-old planning to retire in the next five to seven years, it could create real concern about the sequence of return risk and cash flow planning.
That’s why risk tolerance isn’t static, it can shift with age, income stability, or simply your lived experience of market volatility.
Time for a Check-In?
Now, during a period of continued uncertainty, is a smart time to check in with yourself (and your advisor). Are you still on track? Are your investments aligned with your ability to take on risk, not just financially, but emotionally?
The goal isn’t to eliminate risk entirely, but to ensure your plan reflects both your long-term objectives and your current risk tolerance.
If it’s been a while since we’ve discussed your risk profile, or if you’re unsure whether your portfolio still fits your comfort zone, let’s set up a time to talk. This is exactly what financial planning is for.