A risk profile is personal financial questionnaire that helps you understand how comfortable you are with taking risks when it comes to your money. It asks questions about your financial goals, how long you plan to invest, and how you might react to changes in the market.  Think of it like getting a tailored suit. A risk profile helps financial advisers recommend investment options that fit you, based on your comfort level with risk along with your age and stage. Most often risk categories come under the following:

• Conservative investors have a lower risk tolerance and are not chasing higher returns.
• Balanced investors seek a middle ground between risk and return.
• Growth investors are willing to take on more risk to aim for higher returns.

How often should I complete a risk profile?

Checking your risk profile once a year is a good practice. This helps you stay on top of any changes in your financial situation or goals. By regularly reviewing your risk profile, you can ensure that your investment strategy remains aligned with your current needs and goals. If you haven’t reviewed it in a while, now might be a good time to do so!

Review your risk profile whenever you experience significant life events, such as getting married, having children, buying a house, or retiring. These events can impact your financial goals and risk tolerance.

This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request