(This is Day 3 of the 4 day Nurses Investing For Wealth Rev Your Riches Challenge™. Nurses & APRNs inside this challenge should have completed my in-depth 2 hour training first. If you haven’t done it yet, click here.)

Get the risk tool–Office of Financial Readiness

Money For Nurses: Isn’t This All Too Risky? 

I need to debunk a huge myth. 

People will tell you that you determine your investment risk based on a feeling. But that’s wrong because investing risk is not a lifestyle choice or a measure of your willingness to gamble your money. 

The right way to determine your investment risk is to use a simple mathematical tool. That’s how to know how much stock and how much bond you need and it’s the secret to protecting yourself against losing money.

Use One Simple Tool

Think of it like this…

I have a patient with me in the office and we’re talking about how to reduce their risk of heart attack. 

Do I...

1) Ask them how much they feel like having a heart attack and base treatment on their response? 

 

OR

 

2) Use the Heart Disease Risk Estimator Tool that’s been validated by research and approved for use by the  American College of Cardiology (ACC) and the American Heart Association (AHA) and base treatment on that?

The second option, right? 

Take The Anxiety Out Of Investing Right Now–How Nurses & APRNs Make More Money By Determining Their Investment Risk 

With heart disease prevention, as you know, not everybody benefits from the same therapies. We don’t just base our decision making on feelings. We base it on science and statistics.

When using clinical risk calculators, you’re probably familiar with how they work. First you input your patient’s risk factors, then submit that. A back-end calculation runs and gives you a result that is specific to the patient and their risk factors that’s helpful to making informed treatment decisions. 

Figuring out your investment risk is exactly like using this Heart Disease Risk Tool.

Nurses wanting to make more money complete an investment risk tool. Start by answering questions about your money goals and what you do with your money in different scenarios. The tool takes that information and runs a backend mathematical equation. Finally, you get a report that tells you your investment risk. 

Now you have a report that is specific to your risk and you use it to determine your investing plan, specifically, how many stocks and how many bonds you should be purchasing.

The One Simple Tool Nurses & APRNs Are Using To Do Their Own Investment Risk Calculation

Go to this page on the Office of Financial Readiness. 

> Scroll to the “Investing Calculators “section

> Click the tool called “Investment Questionnaire — Broad Portfolio”

When you watch the video at the top of this page, we will complete this investment risk tool together. I walk you through step-by-step breaking down the confusing financial jargon as we go. At the end you’ll know your personal investment risk. But more importantly, you’ll see how to apply that to your investments to make sure you're a nurse who’s making the most money possible through investing.

Homework

1. Visit the website https://finred.usalearning.gov/ToolsAndAddRes/Calculators/Investing.
2. Click “Investment Questionnaire — Broad Portfolio.”
3. Submit your answers.
4. Hit Calculate.
5. View Your Report – Review your Portfolio Allocation by Asset Class.
6. In your report, simplify the stock category. To do this– add the large caps, mid caps, small caps, and international percentages together. 
7. Now compare your percentage recommendations in your report to the investment percentages in your accounts. Do they match? 
• If not, then you’ve identified an unnecessarily risky situation needing fixed.
8. Post your homework in the FB group. That’s where you get direct access to me for support and feedback during the challenge!  

Conclusion

Are you seeing how doable this is when you know the right steps?

If you didn’t find an identical match between your risk calculation and yesterday's homework, then you’ve identified an unnecessarily risky situation needing fixed. And that’s what I’m going to talk to you about in the next video. Rev Your Riches Video #4: Find & Fix Problems With Your Investment Strategy–Maximize Your Returns By Building Your System.

See you then!

...

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