Run through this exercise with your client to determine if they are more concerned with risk or returns.
"Put all your money on the table in front of us. I will now place a nickel and a quarter on the table. Let's play a game to determine your returns for the next 12 months."
If you choose the nickel, flip it in the air. If it lands on heads, you'll be up 5%. If it lands on tails, you'll be down 5%.
If you choose the quarter, flip it in the air. If it lands on heads, you'll be up 25%. If it lands on tails, you'll be down 25%.
Your client likely chose the nickel, indicating they are more concerned with risk than return at this stage of their life.
DataDriven Advisors™ use math and finance to deliver portfolios that address their client's main concern, risk, while simultaneously earning a fair return.