Graph chart icon next to 25mph speed limit sign
Graph chart icon next to 25mph speed limit sign

By Bob Barber, CWS®

2 Timothy 1:7 “For God gave us a spirit not of fear but of power and love and self-control.”

Life is full of risk. Every time we get into a car to go somewhere there is a RISK. Moving to a different city there is a RISK. Changing jobs for hopefully a better future is a RISK. Getting on a plane OR on a boat is a RISK. Starting a business is a risk, and the list goes on.

What IF the human race decided to never take any RISK?

Risk is not a bad thing because a life completely void of risk would be very boring, but calculated risk can result in good to great outcomes and may be necessary to live a fulfilled life. Risk can equal good – great leaders and inventors are risk takers. Relationships involve risk. Moving involves risk. Business ventures involve risk. What kind of world would we live in if no one ever risked anything? Our Heavenly Father took a risk by sending His Son down from heaven to live among us.

When I build investment portfolios, I look at 15 types of different risks to make better educated decisions and how they fit within a financial plan. These 15 risk are:

1) Concentration Risk: This is like investing in only one category (real estate, C.D.’s, stocks, bonds, gold, annuities, one sector, etc)

2) Economic Risk: Can the investment overcome a downturn?

3) Political Risk: This is free enterprise vs. a government controlled marketplace.

4) Tax Risk: How will taxes play a part in the returns?

5) Liquidity Risk: These are surrender and tax penalties.

6) Interest Rate Risk: This includes rising rates and how they could affect the economy.

7) Inflation Risk: Gotta beat it, or we’re going broke safely.

8) Longevity Risk: Could you outlive your savings if you retired?

9) Emotional Risk: Stay aware of allowing emotions to dictate investment decisions.

10) Expense Risk: High fees can hurt the returns.

11) Short Term Risk: Allowing short term thinking to get in the way of long term results.

12) Long Term Risk: This is an unwillingness to change a mapped out plan when newer roads are ahead.

13) Health Risk: This is how pandemics, like this year, can affect the economy.

14) Overall Market Risk: Trends and sectors rotate every few years. Some sectors become overvalued, while others have become undervalued.

15) Not Taking Risk: Not taking any risk at all can be a risk in itself.

Understanding Your Investment Risk Tolerance

– Think of Risk on a scale from 1 to 100. 1 = Zero Risk and 100 = Most Aggressive Risk, with everything else in between.

– Next, think of risk as a speed limit. Is getting to a destination faster with more risk worth it or slower with less risk the better option?

– What’s the right balance between risk and reward? We have 5 Different “Values based Portfolios” to correspond to your personal Risk score:

Ultra Conservative
Aggressive Growth

To find out your risk score, please contact Christian Financial Advisors® Group by calling us at 830-609-6986, e-mailing in**@ci*******.com, or scheduling a virtual appointment on our website at

Check out our 2 podcast episodes on investment risk by visiting our website, :

87 – Understanding Investment Risk

88 – Which Investment Models Are Right For You?


  • Typewriter with Elections 2020 typed out on paper
  • Graph chart icon next to 25mph speed limit sign
  • bar graph of time vs wealth below title Compounding and The Rule of 72
  • GIVE letters next to paperwork for Christian Financial Advisors newsletter
  • Tablet with Plan Your Year on the screen and 2021
  • Family decorating a Christmas tree in their home