Understanding Risk—Are You Too Aggressive or Too Conservative?

When it comes to investing, “risk” can feel like a dirty word. But the truth is, risk isn’t something to fear—it’s something to understand. The right amount of risk is how you grow your wealth. The wrong amount? That’s when things get uncomfortable—or worse, financially damaging.

Let me introduce you to two very real women—names changed, of course—who found themselves on opposite ends of the risk spectrum.

Meet Lisa: The Overachieving Risk-Taker

Lisa, 47, came to me after a rollercoaster year in the markets. She’s smart, successful, and wanted to make up for “lost time” after her divorce. She loaded her portfolio with high-growth stocks and crypto, chasing returns she read about online.

But when the market dipped, so did her confidence—and her account balance.
“I can’t sleep,” she told me. “I feel sick watching it drop.”

The problem wasn’t the market. It was misaligned risk.

Meet Karen: The Ultra-Conservative Saver

Karen, 58, had been diligently saving in CDs and a low-yield money market account. She hadn’t lost a penny—but she also hadn’t gained much in the last decade.
“I don’t like risk,” she said. “I just want to feel safe.”

But Karen’s plan didn’t account for inflation or longevity. She risked outliving her money—not from market crashes, but from being too cautious.

These women represent opposite extremes. So, how do you know where you land?

 What Is Risk Tolerance—and Why Does It Matter?

Risk tolerance is your ability and willingness to endure market ups and downs. It’s not just about being brave. It’s about understanding:

• How long you have to invest (your time horizon)
• Your goals (growth, income, preservation)
• Your personality and past experiences with money

Why it matters: If your portfolio doesn’t match your comfort zone or goals, you’re more likely to make emotional decisions—like panic selling or staying frozen in fear. And both can be costly.

Are You Too Aggressive?

You might be too aggressive if:

• You panic during downturns but are still in risky investments
  ➤ Why this matters: You’re setting yourself up for a cycle of stress and poor timing—selling low and buying high.
• You’re investing in things you don’t fully understand
  ➤ Why this matters: If you don’t know what you own, you won’t know how to react when markets shift.
• Your plan relies on big returns to succeed
  ➤ Why this matters: It’s not sustainable. Markets go through cycles, and overestimating returns can leave you underfunded later.

Lisa’s experience? She didn’t need “get rich quick.” She needed “grow steady and sleep at night.”

Are You Too Conservative?

You might be too conservative if:

• Most of your money is in cash, CDs, or low-risk bonds
  ➤ Why this matters: Inflation slowly erodes your purchasing power—your money is losing value over time.
• You’re not earning enough to meet your long-term goals
  ➤ Why this matters: Playing it too safe may keep you comfortable today, but it could leave you financially stressed in retirement.
• Fear, not strategy, is driving your decisions
  ➤ Why this matters: Avoiding all risk might feel like control, but it often limits your financial potential.

Karen thought she was protecting her money, but in reality, she was unknowingly putting her future lifestyle at risk.

Finding the Right Balance: The Lisa + Karen Plan

Together, we created a strategy that respected each woman’s why.

For Lisa, we adjusted her portfolio to reflect long-term growth—but added risk controls so she wouldn’t lose sleep at every headline.

For Karen, we introduced some growth assets, like diversified stock funds and income-focused strategies, while keeping enough cash to meet her comfort level.

The right balance of risk is personal, intentional, and empowering.

Your Action Step

Your season of life, goals, and emotions all play a role in how much risk you should take.
The good news? You don’t have to guess.

I help women like Lisa and Karen—and you—craft portfolios that feel just right. Not too hot, not too cold. Financial Goldilocks style.

Take the Risk Comfort Quiz, then let’s take a look at your strategy and make sure your portfolio is growing with purpose.

Schedule your complimentary review

Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Trust and Insurance Services (“KTI”), by individually licensed and appointed insurance agents. KWM and KTI are subsidiaries of Kingsview Partners. KWM is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.