Perspectives No. 5

Assessing our own financial risk tolerance is extremely difficult to do. It not only requires an understanding of our own personal financial picture but also a deeper understanding of our own psychology. At the very least, we need to have the ability to predict how we will behave in the future, based on the forecasted outcomes of certain investment scenarios. We also need to be able to vaguely predict how our financial and personal circumstances will change over time, whether this is something as simple as a career change and its effect on income, or having children.

The fifth installment of Perspectives explores how financial and investment institutions have developed necessary efficiencies to be able to handle the democratization of personal investing and the effectiveness of the risk safeguards and profiles that have resulted as a requirement of client processing requirements.