04/10/2026
“How much risk should I still be taking, and when should that start to change?”
Risk tolerance is often discussed early in the planning process, but it is not something that remains fixed over time. As circumstances change, including income stability, family responsibilities, and proximity to retirement or other major transitions, the role that risk plays within a plan also evolves.
In practical terms, risk is not only about market volatility. It also relates to whether the capital in question is needed to support near-term or long-term goals, and how sensitive those goals are to changes in value. For example, funds needed in the next few years for a home, business investment, or lifestyle support are often treated differently than assets intended for long-term growth. For some individuals, maintaining a higher level of risk may still be appropriate, while for others, preserving capital and reducing variability becomes more important.
Clarity comes from aligning risk with the purpose of the assets and the timing of when they will be needed, rather than relying on a fixed definition of risk tolerance.
🟦 🟦 🟦 Many of the same questions come up in conversations with clients. This quarter, we are sharing a selection of them, along with how we approach them in practice.
