Understanding risk tolerance can lead you closer to finding out how your portfolio should be diversified.
Your risk tolerance refers to how comfortable you are with fluctuations in the market and how they may impact your long term investment goals.
Risk tolerance is often associated with age. In general, people who are younger and have a longer time horizon, are often able to take on greater risk than people older with a shorter-term horizon.
However, age is not the only determining factor. Depending on a young investors financial situation (income, debt, goals, etc), it may not be wise to be aggressive. Investors nearing retirement, who would normally be more conservative, may still be able to take on more risk if all other factors warrant it.
WHAT IS RISK TOLERANCE?
Answer a few questions and obtain a PDF generated report with your risk tolerance score.
You will also receive a recommended Asset Allocation Model that fits your score and can be used to help you choose the investment options in your retirement plan.
WHAT IS THE RIGHT MIX FOR YOU?
