Portfolio Risk Analysis
Beaumont TX
Most investors do not know how much risk their portfolio actually carries — until a market decline reveals it. By then, it is too late to rebalance without locking in losses. Richard Placette II uses Riskalyze to quantify your portfolio risk, compare it to your actual tolerance, and build a portfolio you can stay invested in through any market environment.
Who This Is For
What a Portfolio Risk Analysis Covers
What the Process Looks Like
Risk Questionnaire
You complete a short Riskalyze questionnaire that quantifies your personal Risk Number — the amount of volatility you can tolerate without making panic decisions.
Portfolio Upload
You share your current account statements. We input your holdings into Riskalyze to calculate your portfolio's actual Risk Number.
Gap Analysis
We compare your personal Risk Number to your portfolio's Risk Number. A significant gap — especially a portfolio that is riskier than you can tolerate — is the most common finding.
Stress Testing
We run your portfolio through historical worst-case scenarios to show you exactly how much it could lose in a 2008-style decline — in dollar terms, not just percentages.
Recommendations
We present specific, actionable changes to bring your portfolio's risk in line with your tolerance and your retirement income timeline.
Implementation
If you choose to work with us, we implement the recommended changes and monitor your portfolio on an ongoing basis.
Frequently Asked Questions
What is portfolio risk analysis and why do I need it?
Portfolio risk analysis is the process of measuring how much your portfolio could lose in a market downturn — and comparing that to how much loss you could actually tolerate without making panic decisions. Most investors discover their true risk tolerance only after a major decline, when it is too late to rebalance without locking in losses. A risk analysis done before a downturn lets you right-size your portfolio while markets are calm.
What is a Risk Number and how is it calculated?
A Risk Number (from Riskalyze) is a score from 1–99 that quantifies the amount of risk in a portfolio or that an investor is willing to accept. It is calculated using a 95% probability range — meaning there is a 95% chance your portfolio will fall within a specific gain/loss range over a 6-month period. A Risk Number of 50 means your portfolio has roughly a 95% chance of being within ±15% over 6 months. We compare your personal Risk Number (what you can tolerate) to your portfolio's Risk Number (what it actually carries).
What is sequence of returns risk and how does it affect my portfolio?
Sequence of returns risk is the danger that a major market decline early in retirement — when you are withdrawing from your portfolio — can permanently damage your income plan even if the market eventually recovers. Because you are selling shares at depressed prices to fund living expenses, you have fewer shares to benefit from the recovery. A portfolio stress test shows you exactly how your income plan holds up in scenarios like 2008, 2000–2002, or a 1970s-style stagflation environment.
How do I know if my portfolio is too risky for retirement?
Warning signs include: a portfolio that is more than 70–80% in equities within 5 years of retirement, significant concentration in a single stock or sector (common for energy sector workers with company stock), no cash or short-term bond buffer to fund 1–2 years of expenses, and a portfolio that would require you to sell equities during a downturn to meet living expenses. We identify all of these issues in a portfolio review.
What is the difference between risk tolerance and risk capacity?
Risk tolerance is psychological — how much volatility you can emotionally handle without making panic decisions. Risk capacity is financial — how much loss your portfolio can absorb without derailing your retirement income plan. You need both to be aligned. A retiree with a high emotional tolerance for risk but a small portfolio relative to their income needs has low risk capacity — and should hold a more conservative portfolio regardless of their emotional comfort with volatility.
Do you work with clients who have concentrated positions in energy company stock?
Yes. Many Southeast Texas workers have significant concentrations in ExxonMobil, Motiva, Huntsman, or other employer stock — either in their 401(k) or in taxable accounts. Concentrated positions carry company-specific risk that is not compensated by the market. We help clients evaluate tax-efficient strategies to diversify over time, including NUA strategies for 401(k) company stock and tax-loss harvesting in taxable accounts.
Find Out How Much Risk You Are Actually Taking
Start with a free Risk Assessment — takes 5 minutes and gives you a clear picture of your portfolio risk before the next market downturn.
Services Available in This Area
Serving Communities Across Southeast Texas
Looking for a Financial Advisor Near You in Southeast Texas?
If you are searching for a financial advisor near Beaumont, Lumberton, Port Arthur, Orange, Nederland, Vidor, Silsbee, Jasper, or the surrounding Southeast Texas area, Richard Placette II with MRB Capital Group provides retirement planning, investment management, 401(k) rollover guidance, Social Security planning, and portfolio risk analysis for individuals, families, retirees, plant workers, and business owners. Whether you are preparing for retirement, reviewing an old 401(k), evaluating investment risk, or looking for a second opinion on your current portfolio, the first step can be a simple 3–5 minute Risk Assessment designed to help identify your personal Risk Number.