Tech Professionals: How to think about Your Investment Risk

Erica Arroyo
May 12, 2022
Written by

We all want to have a well-diversified portfolio and feel confident that we are investing with balanced risk. In fact, understanding your level of risk is a key component of your overall investment strategy. 

Take too little risk, and it may become more difficult to achieve your long-term financial goals. Likewise, too much risk can leave you overly exposed and more susceptible to a number of factors such as volatile market conditions or company-specific risk, so it’s important to review your exposure regularly. 

What strategies should you consider when managing your risk?

1. Diversification

Implementing a diversified portfolio across a variety of asset classes is not only an important factor to help achieve your long-term goals, but it can help you manage your exposure and risk level.

2. Consider a variety of factors

Investment allocations and risk level should be determined by a variety of different factors: long-term goals, investment time horizon,  the current status of the markets, and your portfolio level of concentration versus diversification. For tech professionals specifically, you should factor in your RSU vesting strategy, your ESPP, and the general outlook of your company.

3. Make regular, tactical adjustments

Perhaps you are close to retirement age, or you have just started your investment journey. Whatever the case, it’s important to make intelligent and informed adjustments at a regular cadence to not only manage your level of risk, but to also take advantage of future opportunities in the market.

Not confident in your approach, or need help assessing your level of risk? We are happy to help.

Are you a tech professional? Take our quiz to find out if now is the time to start working with a financial advisor.

Topics: insights, investment management, tech professionals

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