We often hear the question "what's your real age?". But a better question might be "what's your investing age?" Your age affects your investment decisions in ways that are obvious, and also in ways you might not be aware of. It comes down to risk tolerance, which can even be influenced by our hormone levels.

Life situation is the first way that age affects investment mentality. Obviously, when we're younger we're in the accumulation phase of wealth-building. Any reputable financial advisor is going to encourage a client to increase savings as much as possible during their 20s, 30s, and 40s, as the latter parts of these years tend to be the highest-earning for most individuals. Many individuals are comfortable with more aggressive investment strategies during these years - though certainly not all.

As children go off to college and jobs turn into retirements, most of us become more conservative investors. This is a common investment adaptation to a new life situation.

But our inherent risk tolerance - which can be influenced by our family history, our social circles, and even our hormone levels - is another key factor when determining "investing age". There are many younger investers who aren't comfortable with risk, and many older investors who take enormous risks in the market. They are simply wired that way, inside and out.

Knowing how you are wired for risk is a key factor when starting any investment plan. A good investment advisor will help you identify your personal risk profile and then act as a balance, recommending ways to leverage investments or hedge against risk. The goal is always to create a clear-eyed partnership that moves and grows as your life moves and grows. The key? Consistency, and the depth of the relationship.

If you don't feel like your current investment advisor is helping you invest according to your personal risk profile, we encourage you to reach out. At Coign, consistency and true partnership is the hallmark of what we do.