I Know My Appetite For Risk, But How Do New Products Fit In?

If you’re saving for retirement, one thing that finance professionals often talk about is your appetite for risk.

In other words, you decide what your money does in the markets, according to how much reward you want to chase, along with the corresponding risks that you take on. Nearly any investment has some risk – it’s a question of how much risk applies, and of what kind. 

Generally speaking, there’s a spectrum, from conservative to balanced to high-risk.

One thing that’s puzzling many investors, though, is the blizzard of new options brought into the markets by blockchain and other developments. How does this change the spectrum of choices that you select from? Or does it change it at all?

Cryptocurrencies and Risk

Rather than trying to evaluate cryptocurrency on the traditional risk spectrum, it’s best to understand that cryptocurrencies have their own specialized risks.

Trying to compare risk from crypto to fiat currency is not really apples to apples. Many cryptocurrencies, like Bitcoin, have high volatility, but are safe from other kinds of changes such as the manipulation of national economies by central banks.

Another new option is the exchange traded fund. These funds are getting a lot of attention now because they hold baskets of assets that allow investors to easily diversify – but they are also easily tradable, which makes them more liquid. You can take a look at available modern ETFs for a portfolio strategy that you can change if and when you desire to change it.

Tailoring Your Investments

In today’s market with new options like cryptocurrencies and derivatives, or tokenized assets, customizing a financial policy takes even more work.

Talk to Monument Financial about how to make your money work for you – we have abundant experience helping people to save for retirement in the ways that are most reasonable to them, and in the particular paths that they choose. Let us help you to save, grow, and protect, through our unique models and attention to your financial history and circumstances. Investing for retirement doesn’t have to feel like a game of blind man’s bluff! It can be as simple as sitting down and choosing from some trajectories that can represent your money well as you proceed toward your golden years, so that there is something there for you when you’re done. We also deal with other kinds of financial planning, in a warm and welcoming environment, with people  who know what they’re doing! Come see us for solid financial advice.

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