Measuring the risk tolerance of an investor is an absolutely crucial piece of any financial advisor’s arsenal nowadays. Not considering your client’s tolerance to risk, and also how aligned their current investment portfolio is to that is a fatal misstep. However, it’s become more and more apparent that risk tolerance is just not enough of an indicator to really understand an investor’s situation. Oftentimes, an investor may be especially averse to risk on an emotional level, but their need to take more risk in order to reach investment goals may be lost on them. Advisors need a way to reconcile this concept to their clients. How do you make a client understand this relationship between risk and return in a constructive way?