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What Does It Mean to Be Risk Averse?
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Everyone we work with will have a different comfort level when it comes to risk, which we account for when building a plan. But what does it mean when someone tells us they are risk averse?
So how do we determine someone’s true capacity for risk? In this episode, we’ll tell you about an online tool we use with people to find out which range of outcomes they’re comfortable with and explore the idea of being risk averse and what that truly means to planning.
Here’s some of what we discuss in this episode:
- What does it mean to be risk averse?
- How does someone end up in risky investments when they think they’re risk averse?
- A situation where we saw someone carrying a lot more risk than they realized.
- What are some ways that we would help someone plan who is risk averse?
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