Risk tolerance is one of the most important ingredients in creating a retirement plan that’s right for you. That’s why understanding risk tolerance and how to accurately determine your own is so important. Some people are naturally wired to take risks. Others are wired to avoid risk as much as possible. In terms of investing, risk tolerance relates to your ability to withstand losses. If you’re investing for growth in the stock market, for instance, how much portfolio shrinkage can you take before you feel the effects financially and/or emotionally?
Risk Tolerance and Investing for Income
