The higher your risk, the greater your potential return. Where you’re at in life plays a significant role in choosing the level of risk you feel comfortable with. For example, if you’re working full time, the level of risk you can afford is greater than someone who is semi-retired. Balancing your risk also depends on your personality.

Maybe you can afford to have a portfolio that’s 60% stocks and 40% bonds, but emotionally, you feel better if your portfolio is balanced 50/50. Working with a Family CFO, you can determine the level of risk that’s appropriate for you and your goals, avoiding either over- or under-exposure in your portfolio. Multiple studies support this approach with many showing that these portfolios outperform 75% of all conventional portfolios.