Paul Resnik: A better way to measure risk tolerance? Don't bet on it

PA360 revisited

clock • 7 min read

Questions based on gambling are at the heart of risk tolerance testing used by many advisers and yet, argues PA360 speaker Paul Resnik, when it comes to investing, gambling should only be used as an example of what not to do

Clear-headed risk aversion is not a trait you tend to associate with the late Hunter S Thompson, the American ‘gonzo' writer. Nor was the Fear and Loathing in Las Vegas author exactly a stranger to gambling, once writing that he could not quit because "without gambling, I would not exist". But he did understand the reality of it: "There are many harsh lessons to be learned from the gambling experience, but the harshest one of all is the difference between having fun and being smart." While for some there may be fun to be had in gambling, the knowledge your future financial security is at...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

London Stock Exchange granted FCA approval to become inaugural PISCES operator

London Stock Exchange granted FCA approval to become inaugural PISCES operator

To launch later this year

Cristian Angeloni
clock 27 August 2025 • 1 min read
Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Catch up on the discussion

Professional Adviser
clock 21 August 2025 • 1 min read
PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

Aberdeen Investments Senior Investment Director and Head of Managed & Model Solutions Justin Jones shares what sets MyFolio Index apart following its Best Risk Targeted Range of Funds award win at the Professional Adviser Awards 2025.

Professional Adviser
clock 19 August 2025 • 3 min read