What Is Your Risk Tolerance?

AAA

It is conventional wisdom that a younger investor can take more risk than an older investor thanks to a longer time horizon. While this may be true in general, there are many other considerations that come into play. Just because you are 65 doesn't mean you should shift your investment portfolio to conservative investments. Growing life expectancies and advancing medical science mean that today's 65-year-old investor may still have a time horizon of more than 20 years.

So, how does an individual investor determine his or her risk tolerance? Let's take a look.
  1. No results found.
Related Articles
  1. Trading

    Risk Tolerance

    Knowing your risk tolerance – and keeping to investments that fit within it – should keep you from complete financial ruin.
  2. Investing

    Investor Risk Tolerance: Ability and Willingness

    Risk tolerance includes both the investor's ability and willingness to take on risk.
  3. Investing

    What You Should Know About Risk Tolerance and Risk Capacity

    When deciding how to invest, you need to consider your risk tolerance and your risk capacity.
  4. Retirement

    How to Change Your Retirement Plan

    Retirement is one of those things you plan for but it can't be etched in stone. From asset allocation to risk tolerance, it must change when life happens.
  5. Investing

    5 Steps to Becoming a Better Investor

    Using these five tips may help you become a better investor.
  6. Retirement

    Plan To Retire Rich

    Don't just hope for the best - develop a course of action to achieve your goals.
  7. Investing

    Matching Investing Risk Tolerance To Personality

    Understanding risk tolerance is crucial to the advisor/client relationship and any good investment policy statement.
  8. Investing

    Create a Diversified Portfolio With These 3 Steps

    Take these three steps to achieve and maintain diversification in your investment portfolio.
  9. Retirement

    Save More for Your Retirement by Managing Risks

    To fund your lifestyle in retirement you need to balance your risk capacity and tolerance.
  10. Financial Advisor

    Pro Tips on Evaluating Clients' Risk Tolerance

    Want to keep clients longer? Bolster your risk assessment capabilities.
Trading Center