Hi folks and welcome to another five minute Friday here on meaningful money.

Today I'm going to be talking about risk flex.

Yes that's a term I made up I I do that a lot. But what is risk exactly?

Risk is a horrible four letter word that strikes fear into a lot of people.

But risk doesn't have to be scary, you just need to know how to use it.

So let's put five minutes on the clock down here, and let's go.

Now what is risk? Well, there's loads of stuff on meaningful money about risk and how it all works.

So I'm not going to go into detail here because you know we've only got five minutes.

But another word for risk is volatility. That's up and downiness, it's how far it deviates from its average

performance. How much does it go up and down around the straight line?

And volatility is something which actually can work in your favour.

Risk is not something to be afraid of.

Think of it as a lever that you pull in order to help you achieve your financial objectives.

And risk is very much a function of time and that's specifically what I want to talk about today.

So we need to start with your base risk tolerance.

Now this is a supposedly objective measure

as to your ability to withstand financial shocks.

And the best places I know right now

to find that out, assuming you haven't had it

done professionally by an advisor, is my risk tolerance.com.

The clever folks of Finimetrica use all kinds of sort of scientific-based tools to help come

up with a risk tolerance. And we'll call that with a risk tolerance.

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