The Truth About Risk Tolerance

Risk tolerance: it’s a phrase you’ve probably heard tossed around a hundred times. But what does it really mean, especially for someone closing in on retirement? In this episode, Tad, Toni, and Tyler break down why the traditional way the financial industry talks about risk tolerance often misses the mark. It’s not just about your comfort level with market swings, it’s about whether your dollars are doing the right job for your retirement stage.

The trio digs into why many portfolios look like a “junk drawer” (full of random investments without a plan), and they explain how different dollars should serve different purposes—like funding your lifestyle, covering emergencies, or passing wealth to your kids. They also tackle the common “foot on the gas, foot on the brake” strategy: holding risky investments and hoarding cash at the same time. Is your portfolio aligned with your goals, or just riding the market rollercoaster? Tune in to find out. 

Here’s what we discuss in today’s show:

📉 Why risk tolerance is more than just a number

🧠 How to think differently about the purpose of your dollars

⚖️ Why diversification alone won’t solve your retirement puzzle

🧰 Is your portfolio a junk drawer? Here’s how to fix it

💵 Is there such thing as too much cash? 

Key Takeaway

"Unless you have a very clear, defined, step-by-step plan, you don't have a retirement plan."

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