Your diversified portfolio strategy identifies whether you believe in forecasting or whether you prefer to capture market returns without attempting to predict individual stock prices or general market cycles.

These beliefs affect your implementation preferences throughout all aspects of your investment portfolio. Retirement income from your diversified portfolio is largely used to offset discretionary expenses and any remaining essential expenses not covered by reliable income sources. We classify these investment preferences within your portfolio as Forecasting and Non-Forecasting strategy approaches.

Your RISA™ Profile™ is significantly related to your Diversified Portfolio strategy and tactics.

While most individuals identify as favoring a non-forecasting approach across all RISA™ quadrants, research shows that as you move from the top quadrants to the lower ones your forecasting orientation increases. We find two possible reasons for this. For some, previous negative forecasting experiences may lead to a greater appreciation for solutions that protect or hedge against future forecasts. Solutions with these protections are located towards the lower end of the RISA™ Matrix. For others, forecasting leads to a greater desire to hold and maintain an investment based on a forecasted expectation. This leads to viewing that investment with a stronger sense commitment, as opposed to a passive index which is a more agnostic choice.