Choosing to invest in your retirement plan is just one step in your financial planning journey. Next, you’ll need a risk management strategy. Gauging your personal risk tolerance — your ability to endure losses in your account due to swings in the market — is an important step. We’re excited to introduce Riskalyze, the world’s first risk alignment platform, available to Grow members through Investment Services.

Why is risk management important?

Because all investments involve some level of risk, it’s important to be aware of how much volatility you can comfortably withstand before you select specific investments. Do you know much risk you are willing to take on in pursuit of your savings goals? Think about the following questions:

• How much do you need to accumulate to provide for a comfortable retirement?
• How well would you sleep at night knowing your investments dropped 5%? 10%? What about 20%? Would you flee to “safer” options or ride out the dip to strive for longer-term returns? Or would you view the downturn as a good opportunity to buy more shares at a value price?
• How much time do you have until you’ll need the money? Typically, the longer your time horizon, the more you may be able to hold steady during short-term downturns in pursuit of longer-term goals — and the more risk you may be able to assume.
• Do you have savings and investments outside of your employer’s retirement plan, including an easily accessed emergency savings account with at least six months of living expenses? Having a safety net set aside may allow you to feel more confident about taking on risk in your retirement portfolio.

Your answers to these and other similar questions should help guide you toward a mix of investments that is appropriate for your situation, timeline and goals.

Introducing Riskalyze, making risk management simple

Our Financial Advisors available through CUSO Financial Services, L.P. can help you identify your own risk tolerance with Riskalyze, a risk alignment platform that mathematically pinpoints how much risk investors want, how much risk they currently have in their portfolio and how much risk they need to take to reach their goals.

Riskalyze quantifies the semantics of the financial advice industry, replacing confusing and subjective terms like “moderately conservative” and “moderately aggressive” with the Risk Number^®, a number between 1 and 99 that pinpoints your exact comfort zone for downside risk and potential upside gain with a 95% Probability Range. Our Financial Advisors can then build an investment portfolio to match your Risk Number and chart a clearly defined path to achieving your goals. Together, we can work to take the guesswork out of your financial future.

Ready to get started? Contact a CFS Financial Advisor.

Grow has contracted with CUSO Financial Services, L.P. (CFS) to provide investment services, and your CFS Financial Advisor will help you build a plan that meets your needs. The advisor will look at your current spending, saving and investing, learn about your goals and priorities, make objective recommendations and support your efforts moving forward through the implementation and management of your plan.

SCHEDULE A COMPLIMENTARY CONSULTATION

Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. For specific tax advice, please consult a qualified tax professional.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2020.

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Posted In:

• Investment Education
• Retirement Planning