When to Revisit Your Risk Tolerance

Your comfort with risk changes over time, just like your taste in coffee — what thrilled you ten years ago may make you jittery today.

Risk tolerance isn’t fixed. It evolves with your life stage, responsibilities, and experience. A market dip can feel like a minor annoyance when you’re 40 and adding to your 401(k), but nerve-wracking at 65 when you’re drawing income.

Ask yourself:

Have my goals or timeline changed?

Did the last market swing rattle me more than I expected?

Am I losing sleep over headlines?

If the answer to any of those is yes, it’s time to check your allocation. Behavioral finance teaches us about loss aversion — our tendency to feel losses twice as strongly as gains. If your investments no longer feel aligned, it doesn’t mean the market changed; it means you did.

Adjusting your portfolio isn’t about reacting emotionally — it’s about staying connected to your true comfort zone. One of my clients once said, “I thought I was aggressive until I lived through a down year. Now I’d rather grow slow and steady.” That’s wisdom, not weakness.

Think of your portfolio like your shoes: it should fit comfortably for the journey you’re on now.

A periodic review — ideally once a year — helps you keep that fit. It’s not about chasing performance; it’s about keeping your financial life aligned with your peace of mind.

GET IN TOUCH
Marion R. Syversen, MBA, BFA™
📱207.862.2952
💌Marion@NorumbegaFinancial.com