To determine your risk score, we look at both your risk appetite and your risk capacity. Risk appetite is based on how you describe yourself as an investor - conservative, moderate, or aggressive - and what your priorities are - seeking gains, minimizing losses, or both. Risk capacity is based on your ability to handle a sudden decrease in earnings. For example: Do you have dependents who count on your paycheck? Are you a dual income or single income household? How much do you have saved that you can access? We look at both to determine your overall risk score which, along with the time horizon of your investing goals, determines Farther’s recommendation for your portfolios.
