Risk capacity and risk tolerance are different things, and age alone shouldn't determine how you invest. One is what you can afford to lose; the other is what you're comfortable losing.
You talk about younger people taking more risk and older people taking more conservative investments. I don't know if that. Right. And I don't know if that's really. Right.
Hit it on the head. Yeah, yeah.
Part of the mix anymore. Because you're not just going to, you're not just going to glide out. Right. So.
Right.
Talk a little.
So that's that. Wow, that's a great specific question because we spend a lot of time separating out your risk capacity versus your risk tolerance. And, and what you're referring to is truly your risk capacity. If you're young, you've got great income, you've got a long time horizon, your risk capacity is huge. But I will say one of my most conservative clients is pretty young. And so the risk capacity is high, but the risk tolerance is quite low. And the opposite. One of my oldest clients is my most aggressive client by far.
Okay.
And the risk capacity may be low, but your risk tolerance may be very, very high. When I'm speaking to my clients, you know, maybe your risk capacity, you're going to weather the storm because you've got the right portfolio, but it's very, very uncomfortable. So there's two separations now. So you can't and should not invest your portfolio just based on where you are in life. That has some guidance, of course. But your risk tolerance really guides us along in, you know, how do we put the pieces of the pie together in the portfolio so it's not just equities and fixed income.
