Risk Tolerance
What is your risk tolerance?
Before you begin to invest, you want to consider your risk tolerance. Risk tolerance is your emotional & financial capacity to deal with investment risk. Your risk tolerance will be influenced by your personality and stage of life. Generally speaking, someone who has many years before retirement might consider investing in products that have a higher risk and greater rate of return. As you get closer to retirement your investment strategy is likely to change.
Risk Tolerance Factors
- Personality Factors
- Age/Years to Retirement
- Income Level
- Financial responsibilities
- Financial Goals
- Health