You may not realize it, but risk management is something that everyone does all day in many aspects of their life. For example, getting in your car to drive somewhere involves risk to your body and potential death. Most sane people mitigate that risk by choosing a safe car, wearing seatbelts, and driving carefully. While you may not be able to eliminate all the risks associated with driving, you can bring them to a level with that you are comfortable and can accept. That risk comfort level is different for every person. If you don’t believe us, just take a look around at your fellow drivers the next time you are on an interstate.
Managing your financial life is no different, everyone has a unique set of risks that they are willing to take. The only difference is that you are not risking injury, you are risking money, and your ability to do the things that you want to do with your hard earned money whether that is retiring comfortably, paying for education, a vacation home, charitable giving, leaving a legacy or some combination of the above. Everyone’s financial life is unique to them.
At QM, we try to understand You and help You understand You (from a financial viewpoint) as best we can. At many investment firms, the salespeople will use a simple risk questionnaire and talk to you about your goals in order to place you in one of their investment buckets. This cookie-cutter approach to wealth management often fails to capture the uniqueness of You.
No one can eliminate all the risk from your financial life. However, we believe that by understanding You, applying our understanding and experience in behavioral finance, planning, investing, and trading - we can help you mitigate many of the risks that can derail your financial life.