Investment Risk Management Services
Determining Investment Risk Has Changed Forever
Over the years, our firm has seen that risk tolerance is not as simple as matching up your age with your investment strategy. Technology has changed the game and now allows investors to put better numbers to important risk questions.
or give us a call:
708.479.7755
Why Traditional Risk Approaches Fall Short
Without a deep understanding of the true risk in your portfolio, we find that the following problems can arise:
- Your advisor may end up recommending what is suitable for you rather than what you will be comfortable with.
- The inability to quantify how much downside risk is in your portfolio leads to an inability to prepare for inevitable bear markets such as 2008 or 2022.
How McCabe Has Changed Our Risk Conversations
Many investors commonly underestimate or overestimate their risk tolerance due to preconceived notions about themselves. That is why our firm uses Nitrogen to pinpoint our clients’ risk appetite. Here is how it works:
Five Minute Questionnaire
Nitrogen has a proven process that starts with a 5-minute, user-friendly questionnaire that helps you pinpoint your risk range. Our advisors use these results to help our clients craft an investment strategy that matches up with that risk range.
Portfolio Stress Tests
Nitrogen has developed “stress tests” to help you see how your current portfolio would perform in past bear markets (like the Financial Crisis) or bull markets (such as 2023-2024).
Quarterly Check-ins
Finally, Nitrogen can send our clients quarterly “Check-Ins” that ask a few simple questions to track changes in your feelings on the market and your financial future. These answers are reported to your advisor which can trigger conversations about adjustments that need to be made to your portfolio.
Nitrogen Looks At Risk Differently
Our firm utilizes Nitrogen to create a more dynamic way to engage with your risk tolerance. This tool helps you get a good sense of where your risk stands today and allows you to closely track changes to your risk as the years go on.
Let’s Discuss Your Investment Risk Management Needs
Using our virtual family office, you can meet with our advisors from the comfort of your own home while receiving the same level of service you deserve.
The McCabe Difference
We offer tailored experiences for high-net-worth and ultra-high-net-worth individuals.
We take a collaborative approach with other professionals.
We embrace traditional and cutting edge technology to match the times and offer you better solutions.
We prefer a depth of expertise in fewer areas, to being generalists.
We have over 40 years experience in this industry helping hundreds of clients.
Schedule A Meeting
Schedule a meeting with our advisors by using our Second Opinion Service, our advisors’ Calendly links, or simply call our office main line.
Meet With Your Advisor
Meet with your designated advisor virtually or in-person to get to know each other and the rest of your family. Many times, a follow-up meeting will be beneficial so you know the value that will be provided before you become a client of the firm.
Complete Our Onboarding Process
Assuming you and the advisor see the potential for a long-term relationship, our staff will guide you through our onboarding process to set up accounts with our custodian and join our portfolio monitoring system, Black Diamond.
Frequently Asked Questions
What if all my accounts (e.g. 401(k), bank accounts, etc.) aren’t with McCabe?
Nitrogen allows us to input all of a client’s holdings so that we can determine the overall risk for your entire household portfolio.
What if I am uncomfortable with my current risk number?
Nitrogen allows you to create proposed changes to see how your risk number would change before you reallocate your portfolio.