Can you remember the last time you felt nervous getting behind the wheel?
For most of us, that moment was decades ago—probably shortly after getting our driver’s license. I still remember thinking it was mildly absurd that the state trusted me to operate a 5,000-pound vehicle around other human beings. And yet, here we are. We drive every day without much thought.
Now let me ask a different question.
When was the last time you felt uneasy about your investments?
For most people, the answer is much more recent.
That contrast tells us something important. Driving is objectively risky. Investing feels risky. And how something feels often matters more than the math behind it.
That’s where risk tolerance comes in.
Risk tolerance is often treated like a personality quiz: conservative, moderate, aggressive. I’ve never found that framing particularly helpful.
A better way to think about risk tolerance is the same way you think about driving.
Most of the time, driving is routine. Sometimes conditions worsen. And occasionally, you’re in unfamiliar territory where mistakes are easier to make. Investing works the same way.
Everyday driving still involves risk—you just don’t think about it much anymore. You wear a seatbelt. You follow traffic laws. You maintain your car.
In investing, mild risk looks like this:
Nothing fancy. Nothing dramatic. Just sound habits that reduce unnecessary risk over time.
Now think about driving in heavy rain or snow. You’re still going to your destination—but you slow down, stay alert, and give yourself more margin for error.
Moderate investment risk often shows up during periods of market volatility or economic uncertainty:
This is where many investors get into trouble, not because conditions are extreme, but because they abandon discipline when things feel tense.
Driving in an unfamiliar city or a foreign country often requires more preparation. Different rules. Fewer instincts to rely on. Less room for autopilot.
Higher-risk investing works the same way:
There’s nothing inherently wrong with higher risk. It just requires added intention, experience, and a clear understanding of what could go wrong.
Good investing isn’t about avoiding risk altogether. That’s impossible. Just like driving.
It’s about understanding how much risk you’re taking, why you’re taking it, and whether it still makes sense given where you are in life.
Markets will always change. Headlines will always be loud. Your plan should be steady.
That’s where thoughtful planning—and an experienced guide—actually matters.