Setting the Boundaries: Understanding Your Capacity for Risk
from The Money Doctors Hosted by Bongiorno Group
When markets turn, the investors who fare best are not always the boldest. They are often the ones whose portfolios were built around a clear understanding of how much loss they could genuinely afford. That understanding, known as risk capacity, helps shape sound investment decisions. The Bongiorno Group’s Head of Wealth, Maddison Price, joins Ricky Caldow, Director, to explore how capacity differs from tolerance and why time horizon sits at the heart of it. Capacity, not comfort, should set the boundaries of any investment strategy. By matching investments to their intended timeframe and holding enough in reserve to ride out a downturn, investors can avoid being forced to sell at the worst possible time. Tolerance then determines where within those boundaries they choose to sit. The Money Doctors is proudly brought to you by leading financial services organisation the Bongiorno Group, the preferred tax and accounting partner for the Australian Medical Association Victoria and the Victorian & Tasmanian Regional Alliance Partner of the Australian Orthopaedic Association. For more information, please call 03 9863 3111 or visit https://bongiorno.com.au/ This general advice has been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of this advice before acting on it. If this general advice relates to acquiring a financial product, you should obtain a Product Disclosure Statement before deciding to acquire the product.
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