One of the biggest and most glaring pitfalls new investors face is not knowing their own money mentality, especially when it comes to risk. They don’t have enough experience to know their comfort level, and so they make mistakes like buying aggressively at the top, selling in desperation at the bottom, and—the cardinal sin—leveraging funds that should be set aside for long-term peace of mind.
Things don’t have to play out this way. Investors can do better. One of the biggest steps in the right direction is taking time to make an honest assessment of your risk tolerance. Chances are, it’s a more complicated issue than it seems on the face of things.
In Your Money Mentality, Ted Oakley explores common investor profiles, types of risk, considerations in your self-assessment, and what steps you can take to ensure the guidance you’re receiving matches your priorities. Risk tolerance is at the heart of most money decisions, and learning to know yourself will make you a better investor and a better partner for the people you trust to give you financial guidance.
ABOUT THE AUTHOR
J. Ted Oakley, founder and managing partner of Oxbow Advisors, began his career in the investment industry in 1976. The “Oxbow Principles” and the firm’s proprietary investment strategies are founded on the unique perspective he has gained during his decades-long tenure advising high-net-worth investors. Ted’s investment advice provides principled guidance to investors from across the United States. He frequently counsels former business owners on protecting and wisely investing their newly liquid wealth.