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At Virtus Wealth Management, your Southlake independent financial advisors, we help our clients prepare for a financially-secure future by developing long-term strategies that focus on the “big picture” versus short-term gain, thereby managing risk.

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Today’s economic conditions and uncertain financial markets require the savvy investor to go beyond traditional boundaries.

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Our mission is to provide innovative, sophisticated and highly customized wealth management solutions and financial advice that address all facets of your finances.

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We tailor everything to each of our clients’ specific needs so that each client can pursue his or her different goals.

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Virtus Wealth Management is the product of a 2016 merger between two well-established Texas wealth management firms.

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Wealth management is more than just investment advice – it includes all aspects of a client’s financial life.

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Wealth management is more than just investment advice – it includes all aspects of a client’s financial life.

Who We Help

At Virtus Wealth Management, we believe we can help you no matter what age you are, what life stage you are in, or how much money you are working with. We want you to feel educated, empowered, and involved in the planning of your financial future.

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There is no predetermined benchmark or criteria that you must reach to let you know it’s time to partner with a financial advisor.

Quantifying Your Risk!

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  • Quantifying Your Risk!

by | Aug 14, 2020

Have you ever wondered what risk tolerance means?  What is the difference between a Conservative Portfolio vs. a Moderate Portfolio vs. an Aggressive Portfolio?  Aren’t those terms subjective?  A conservative portfolio to one person may be an aggressive portfolio to another, right?  What if we could quantify a portfolio’s risk with a range for potential loss to allow you to understand the financial impact of risk?

At Virtus Wealth Management, we have a process that does just that.  Understanding objective drawdown limits and ranges of return expectations help us help our clients to understand the financial impact of risk, and it keeps us all on the same page.

Investment returns are not linear. While any portfolio may have an average annual historical return, every year is different. When a portfolio is on its intended track, the expectation for any rolling time frame, for example, the next six months, should have a range of returns from negative to positive.

Image of Return Range, 95% probability next 6 months

Our portfolios have stated risk objectives and are manage accordingly.   This clearly defines the range of expectations for our clients on both the downside and upside at a 95% probability for the next 6 months.  It is absolutely critical for us that our clients explicitly understand the risk / reward relationship and the fact that they can’t have one without the possibility of the other!

As such, we believe avoiding loss of principle is a primary component of success as the percentage gain required to break-even is higher than the percentage loss (see table below).

Actual Loss / Gain Required To Break Even

Do you know how much risk you are taking in your portfolio?  Do you want to better the downside / upside risk relationship to quantify the risk that you are willing to take to reach your goals?  If so, please get started today by Rating Your Risk.  We are here to help!


The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice.

All investing involves risk including loss of principal.

No strategy assures success or protects against loss.

Past performance is no guarantee of future results.

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