What is a risk profile and why you need to complete one
A risk profile is a personal questionnaire that helps you understand how comfortable you are with risk when it comes to your investments or KiwiSaver.
It looks at your goals, how long you plan to invest, and how you might respond to market changes. It also takes into account your age and stage in life, helping ensure your investment approach reflects both your situation and your comfort level.
You can think of it like getting something tailored. A risk profile helps your adviser recommend an investment approach that fits where you are now and where you want to go.
Most people fall into one of these broad categories:
- Conservative: Focused on protecting what you have, with less exposure to market ups and downs
- Balanced: Looking for a mix of stability and growth over time
- Growth: Comfortable taking more risk in pursuit of higher returns over the long term
How often should I complete a risk profile?
Reviewing your risk profile once a year is a good habit. It helps ensure your investment approach still reflects your current goals and financial position.
It is also important to review your risk profile after any major life changes, such as getting married, having children, buying a home, or retiring. These events can influence both your goals and the level of risk that is right for you.
If it has been a while since your last review, it may be worth taking a fresh look.
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
