Why Risk Tolerance Doesn't Matter (Use THIS Instead)

Most advisors start with one question: “What’s your risk tolerance?”
In retirement, that question might steer you in the wrong direction.

In today’s episode, Ari breaks down why traditional risk questionnaires fail, and the better framework that actually protects your lifestyle, your confidence, and the income you need to live well in retirement. 

You’ll hear the story of a couple who rated their risk tolerance completely differently… and then changed their answers the moment markets dropped. That moment revealed the real problem: risk tolerance isn’t stable, and it doesn’t tell you what you truly need to know.

Instead, Ari walks through a practical, back-of-the-napkin method for building a portfolio that fits your actual life, not a textbook. From identifying how much income you really need… to understanding how many years of “war chest” money can help you ride out downturns… to adjusting your allocation as your lifestyle shifts from go-go years to slower seasons. 

If you’ve ever wondered whether your portfolio is too risky, too conservative, or simply too cookie-cutter, this episode will give you the clarity you’ve been missing.

In this episode:

• Why risk tolerance changes with the market — and why that’s a problem.
• The question to ask instead of “What’s your risk tolerance?”
• How to determine the right mix of equities, bonds, and cash for your lifestyle.
• Why retirement is a different game — and why singles, doubles, and consistency beat home runs.
• A simple framework to help you optimize without overthinking.

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Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.

The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.

Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements

Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.

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Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.