Whether it’s the World Cup or Wimbledon, this time of year is heaven for sports lovers. And a love of watching those intense, nail biting feuds on the TV can be a sign of your overall risk tolerance. Studies show that just watching sports increases our adrenaline levels, and those who love the rush of that particular hormone tend to have a greater appetite for risk than those who would much rather enjoy some peace and quiet away from all the drama.
Of course this is not a precise measure, which is why at Serenity Financial Planning, we carry out risk profiling of all our clients. We use the Finametrica system, a state of the art psychometric risk profiling tool coupled with the extensive information we have obtained about you through the preparation of your financial life plan.
What is often particularly helpful is that couples can begin to understand how their individual risk tolerance differs, which then opens up conversations which can help to resolve ongoing tensions about decisions they make.
A husband and wife who have greatly differing risk tolerances, for example, can get a greater understanding of why the other feels strongly about particular decisions. Through the greater understanding and the ensuing discussions, we can help to create an investment and financial plan which both parties are happy with.
What we cannot do, however, is solve any ongoing discussion about whether it’s better to watch the World Cup Final or Wimbledon — that’s one dilemma we’re going to let you resolve on your own.
As always, do contact your Serenity Financial Planner if you’d like to find out more or arrange a meeting.