Color of Money

The Color of Money Risk Analysis assess your financial picture and provides an overall risk tolerance score. Your responses will be used to calculate your COMRA score – a key part of our work together and your first step toward the retirement you desire. Those eleven questions tell us about your feelings towards investing for your future.

The Color of Money Risk Analysis score is an important part of the Color of Money concept: a system that helps you organize your assets into the different types of money you have: Red Money, Yellow Money and Green Money.

Red Money is money that you hope will be there when you need it – it can go up and down in value at any time, and does not have any minimum guarantees. Red Money is made up of at-risk assets such as stocks, bonds, mutual funds, and real estate investment trusts (REITs).

Green Money, on the other hand, is money that is conservatively invested so it is more likely to be there when you need it. It won’t produce the potentially higher returns of Red Money, but it won’t experience the potentially higher negative returns when the market goes down. Government-backed bonds, savings and checking accounts, fixed indexed annuities, certificates of deposit, treasuries and money market accounts are all examples of Green Money.

Yellow Money assets are professionally managed for a specific purpose. Yellow money can be managed toward your individual investment objectives and risk tolerance such as: growth, income or principal preservation. The growth potential is greater than Green Money but Yellow Money is subject to market risk and potential loss of principal.

Everyone can divide their money into these three categories. The goal is to find the balance that is most appropriate for you and your situation.

To find out your Color of Money Score CLICK HERE