Risk profiles
Match structure to your actual capacity for loss
Risk tolerance is psychological; risk capacity is mathematical. A sound capital model accounts for both — your time horizon, income stability, and the drawdown you can withstand without abandoning the plan.
Conservative — capital preservation first,
growth secondary.
Balanced — moderate growth with meaningful
downside ballast.
Growth — equity-heavy, long horizon,
volatility tolerated.
Aggressive — maximum growth orientation,
minimal ballast.