Financial Advisory Services
Portfolio Risk Analysis
Beaumont, TX
Most investors don't know how much risk their portfolio actually carries — until a market downturn reveals it. Find out now, before it costs you.
The Risk You Don't See Is the Risk That Hurts You
Most investors have a general sense of whether they are "conservative" or "aggressive." But that self-assessment rarely matches the actual risk level of their portfolio — and the gap between the two is where retirement plans break down.
A portfolio that performed well during the 2020–2024 bull market may be carrying 60%, 70%, or even 80% equity exposure. For a 58-year-old in Beaumont who is five years from retirement, that level of risk means a significant market correction could permanently impair their retirement timeline. Not because they made bad investments — but because the risk was never measured against their actual situation.
Portfolio risk analysis is the process of quantifying exactly how much risk your current investments carry, comparing that to your personal risk tolerance and retirement timeline, and identifying any misalignment before it becomes a problem.
Richard Placette II uses the Riskalyze platform to assign a precise Risk Number to both your portfolio and your personal risk tolerance — then builds a plan to bring them into alignment.
Understanding the Risk Number Scale
Risk Numbers run from 1 to 99. The goal is alignment — your portfolio's Risk Number should be close to your personal Risk Number.
Conservative (1–30)
Capital preservation is the priority. Minimal equity exposure. Appropriate for retirees who cannot afford significant portfolio losses.
Moderate (31–60)
Balanced growth and protection. A mix of equities and fixed income. Common for pre-retirees 5–10 years from retirement.
Growth (61–85)
Higher equity allocation for long-term growth. Accepts meaningful short-term volatility in exchange for higher expected returns.
Aggressive (86–99)
Maximum equity exposure. Appropriate only for investors with long time horizons and high tolerance for significant drawdowns.
What a Portfolio Risk Analysis Includes
Measure
Quantify the exact risk level of your current portfolio using a precise numerical score, not vague categories.
Compare
Compare your portfolio's risk to your personal risk tolerance and retirement timeline to identify any gap.
Align
Adjust your portfolio to match your actual risk tolerance — so you can stay invested through volatility without panic.
A Local Example: The Pre-Retiree With a Misaligned Portfolio
A 61-year-old Nederland resident planning to retire at 65 comes in for a portfolio review. His 401(k) has grown steadily for 20 years and he has never made major changes. His personal Risk Number assessment comes back at 38 — he is a moderate investor who would be uncomfortable losing more than $18,000 on a $100,000 portfolio over six months.
His portfolio Risk Number? 72. His current allocation — built during the accumulation phase — is 75% equities. In a 2008-style decline, his $650,000 portfolio could lose $200,000 or more.
That misalignment is not unusual. It is the natural result of a portfolio that was never rebalanced to reflect a changing timeline. The fix is straightforward — but only once the gap is identified. That is what a portfolio risk analysis does.
Free — Takes 5 Minutes
Find Out Your Personal Risk Number
Answer a few questions about how you would react to specific gains and losses. Get your Risk Number instantly — then schedule a consultation to compare it against your actual portfolio.
Frequently Asked Questions
What is a Risk Number and how is it calculated?
A Risk Number is a score from 1 to 99 that quantifies how much portfolio volatility you are comfortable with. It is calculated through a series of questions about how you would react to specific dollar gains and losses over a 6-month period. The result is a precise, personalized measure of your risk tolerance — not a vague "conservative/moderate/aggressive" label.
How do I know if my portfolio has too much risk?
The clearest sign is that your portfolio's Risk Number is significantly higher than your personal Risk Number. For example, if your personal risk tolerance is 35 but your portfolio is positioned at 65, you are carrying far more risk than you are comfortable with — and a market downturn will likely cause you to panic-sell at the worst time.
My portfolio has done well recently. Why would I change it?
Recent performance is not a reliable indicator of appropriate risk. Portfolios that perform well in bull markets often carry concentrated risk that only becomes visible in a downturn. The question is not whether your portfolio has made money — it is whether you could withstand a 20%, 30%, or 40% decline without derailing your retirement.
What does a portfolio risk analysis actually look at?
We analyze your current asset allocation, individual holding risk levels, concentration in any single sector or company, correlation between holdings, and how your overall portfolio would likely perform in various market scenarios — including a 2008-style decline. We then compare that to your personal risk tolerance and retirement timeline.
I am 5 years from retirement. Should I reduce my portfolio risk now?
For most people, yes — but the right answer depends on your other income sources. If you have a pension that covers most of your essential expenses, you may be able to maintain more equity exposure. If your portfolio is your primary income source in retirement, reducing risk as you approach the distribution phase is generally prudent.
How often should I have my portfolio risk analyzed?
At minimum, annually. Also after any major life event — job change, retirement, inheritance, divorce, or significant market movement. Portfolios drift over time as different assets grow at different rates, which means your actual risk level may be higher than you think even if you have not made any changes.
Does Your Portfolio Match Your Risk Tolerance?
The free Riskalyze risk assessment gives you a personalized Risk Number — a score from 1–99 that shows how much market volatility you're actually comfortable with. Richard Placette II uses it to check whether your investments are aligned with your goals.
No accounts transferred · No obligation · Results shared only if you choose
Related Resources
Ready to Know What Your Portfolio Is Really Doing?
Schedule a free portfolio risk review with Richard Placette II. We will measure your actual risk exposure, compare it to your tolerance, and identify any adjustments needed before your retirement timeline demands it.
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 portfolio risk analysis, retirement income planning, investment management, 401(k) rollover guidance, and Social Security planning for individuals, families, retirees, plant workers, and business owners. Whether you are 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.