Do you have a high-risk tolerance when investing your money? Or do you prefer a more conservative path? If your financial advisor does not understand your risk tolerance and makes poor decisions on your behalf, you may be able to recover your investment losses.
To know your risk tolerance, your answer may be affected by a variety of conditions such as:
- Your age
- Investment goals
- Investment time frame / When you plan to retire
- Financial planning for future generations
What is Risk Tolerance?
Risk tolerance is an important gauge when investing. It is the amount of unpredictability in investment returns that you are willing to withstand in your financial planning. Risk tolerance depends on your financial objectives and the ability to handle swings and fluctuations in the value of your portfolio.
The greater and faster return you want for your money, the more risk you’ll usually have to accept. If you are investing for the long-term, you can typically afford to take more risk. Investors with a high risk tolerance may be more likely to engage in “stock picking,” or attempting to hold a few stocks that might promise high returns.
But, if you are saving over the short-term or want quick access to your money, it may be wise not to take as much capital risk. For such an investor, investing substantial money in individual stocks may not be the best option. Such an investor may prefer a low-cost index fund consisting of various tradable securities or some other investment option.
Guidance for Risk Tolerance
Financial advisors have a responsibility to avoid taking actions that put their clients at risk of financial harm. If a financial advisor fails to do so, the investor may have a legal claim against his/her advisor.
Filing a Lawsuit Against Your Advisor
Your financial advisor is obligated to recommend only suitable financial products for your age, investment objectives, experience, and desired level of risk. If you believe your financial advisor has failed to act in your best interest, you may be able to take legal action. For an explanation of the FINRA process, see our other posts on this page.
Seeking Recovery for your Financial Losses
In legal matters, it is important to speak to a professional familiar with the laws in your state. If you believe you have a claim against your financial advisor in Missouri or Illinois, call Voytas Law, LLC at 314-380-3166.
Rick Voytas of Voytas Law, LLC is a trial lawyer who combines objective advice with the tactical know-how to obtain the compensation you deserve.
Rick Voytas has more than nineteen years of courtroom and litigation experience, handling a variety of difficult cases.
As a native of St. Louis and licensed in Missouri, Illinois, and various federal courts, Rick Voytas provides knowledge and personal attention to your legal matter.
Don’t delay! Contact Voytas Law, LLC now for your investment-related legal issues in Missouri and Illinois at 314-380-3166 or learn more at www.voytaslaw.com.
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