At Strategic Income Group, we believe every dollar has a purpose. Your investments should reflect not just your goals, but also your emotional resilience, time horizon, and life capacity. We approach risk not as a checkbox, but as a multi-dimensional strategy essential to achieving your best life.
Why Risk Tolerance Alone Isn’t Enough
Risk tolerance questionnaires are a starting point—but insufficient. Dalbar’s long-running Quantitative Analysis of Investor Behavior (QAIB) reveals a consistent “behavior gap”: investors underperform the market because of emotional reactions. For example:
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2023: The average equity investor earned 5.5% less than the S&P 500, representing one of the largest gaps in 30 years (Reference)
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Over 20–30 years, investor returns have lagged index returns by approximately 3–4% per year, primarily due to poor timing—selling low and buying high (Reference)
In short, when markets dip or rally, emotional pulls can destroy value more than fees or market drag.
The SIG Framework for Intentional Risk Management
We’ve upgraded our approach using the Orion Risk Intelligence tool, which evaluates three critical dimensions:
1. Risk Tolerance
Your emotional comfort with market swings.
2. Risk Capacity
Your financial ability to endure potential losses based on timelines and obligations.
3. Risk Composure
Your likely behavior in real market conditions—fear or focus?
By understanding all three, we build portfolios that are not only financially aligned, but emotionally and behaviorally sustainable.
Beyond Risk: The Bigger Strategy
A smart plan also considers:
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Asset Allocation – Spread across equities, bonds, alternatives, hedges
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Asset Location – Optimizing tax efficiency via account types
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Time Horizon – Matching investments to when money is needed
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Volatility Appetite by Goal – Aggressive for growth, conservative for near-term
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Goal-Based Planning – Each dollar is directed toward a specific purpose (retirement, giving, education, lifestyle)
This purposeful design ensures that no dollar is “just floating”—every piece serves a defined role tied to your life story.
The SIG Difference: Planning with Purpose and Precision
At SIG, we integrate behavioral science, financial strategy, and personal purpose to build secure yet growth-focused plans. We combine:
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Research-driven tools
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Goal-based planning frameworks
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Dedicated oversight from your SIG Financial Planner
This empowers you to stay calm in chaos and remain confident in your plan, no matter market turbulence.
Stay Aligned, Stay on Purpose
If you’ve yet to update your risk profile—or want a richer understanding of your risk blueprint—now is the time. This updated format ensures your account is built for your life, not just market cycles.
Reach out to your SIG Financial Planner today and ask about your personalized Orion Risk Intelligence results to help strengthen your financial foundation.
Live your best life. Leave a lasting legacy.
