Understanding Risk Without the Panic
- Heather Asteriou
- Nov 4
- 3 min read
Most University employees in their 30s have heard they should be “aggressive” investors. Aggressive does not mean gambling. It means structuring your 403(b) investments to use your longer time horizon while still protecting yourself from major mistakes.
When you are in your 30s, you have two big advantages:
Time to recover from market downturns.
Consistent income from your University job that allows you to keep contributing even when the market dips.
However, many employees never adjust their allocations after their first day of enrollment. Others assume their default fund is automatically the best fit. Neither is always true.
What “Risk” Really Means in Your TIAA or Fidelity 403(b)
Risk is not only about losing money. It is about how much your investments go up and down over time. That movement is called volatility. In your 30s, you can usually accept more volatility than someone in their 50s, but you still need balance.
An example allocation for some younger investors is 80 percent stocks and 20 percent bonds. That may be right for certain people, but not for everyone. If market swings make you anxious, you might panic and sell during a downturn. Selling low can undo years of progress. The right mix is the one you can stay with through rough patches.
Building a Risk Mix You Can Live With
Think of your 403(b) like a recipe. Each ingredient serves a purpose.
Stocks for growth. Domestic and international stocks aim to grow your money over time.
Bonds for stability. Bonds help smooth the ride so you are less likely to abandon your plan.
Diversification matters. Mixing different types of stocks and bonds spreads risk so one area does not determine your entire outcome.
Rebalancing keeps you on track. Over time, winners can take over your portfolio. Rebalancing brings you back to your target risk.
Behavioral Risk Is Real
Your allocation is only half the story. The other half is how you behave when markets fall.
Set guardrails in advance. Decide your rebalancing rules and contribution plan before the next downturn.
Automate what you can. Automatic contributions and periodic rebalancing reduce decision fatigue.
Match your mix to your sleep level. If an allocation keeps you up at night, it is too risky for you, even if it looks good on paper.
Practical Steps to Take Right Now
Review your current allocations in your 403(b). TIAA and Fidelity both provide simple allocation and risk tools in your online account.
Compare your personal risk tolerance with your portfolio’s actual risk. Do they match?
Confirm you are diversified across major stock and bond categories and not concentrated in a single fund.
Turn on or schedule rebalancing. Quarterly or annual rebalancing works for many investors.
If you prefer a set-it-and-monitor approach, evaluate whether a target date fund aligns with your retirement timeline and comfort level.
How Provizr Helps Balance Risk and Reward
Our approach to risk combines:
Core allocation: A well-diversified base of low-cost funds
Tactical management: Adjustments over time to avoid overexposure to riskier asset classes
Common-sense oversight: We are not robo-advisors; we make adjustments based on your life stage and priorities
This means you are not simply “riding out the market”; your portfolio evolves with you.
The Bottom Line
A thoughtful risk level helps you participate in long-term growth without losing your footing during market dips. The goal is not maximum risk or zero risk. The goal is the right risk for you, so you can stay invested and let time do the heavy lifting.
If you want a second set of eyes on your allocation or a plain-English checkup of how your risk level lines up with your goals, the Provizr team is always here to help.