When building an investment portfolio, it is important to make sure you are comfortable with the level of risk.

There are certain things in life that can send us on an emotional rollercoaster. Money can be one of them. We all work hard for our paycheque and the thought of losing, even a little bit, can send even the most stoic of us into a tailspin. So, when it comes to investing, it is no wonder we vow to never invest again when markets drop a few points.

When building an investment portfolio, it is important to make sure you are comfortable with the level of risk. How do you know what your risk tolerance is? Your advisor will encourage you to take Equitable Life’s Investor Profile Questionnaire. This questionnaire looks at your financial goals and objectives, investment time horizon and attitude towards risk to define your investor style.

An investor style can help you select appropriate investments. In general terms, your profile defines the level of risk you are willing to take. For example, if you need to protect your money and have a short time horizon, you may follow a more conservative portfolio. If you have a longer time horizon and are focused on growing your money, you may follow a more aggressive equity-based portfolio. Whatever the case, do not let your emotions limit your financial possibilities.

Want to learn more? Speak to your financial advisor today and learn how to invest your money, on your terms.