Knowing your risk tolerance
When you are determining your tolerance for investment risk (the
price volatility of your investments) there are several important
factors for you to consider:
- Your age
- Your net worth
- Your personal investment experience
- Your other sources of income
One of the most important services your financial advisor
provides is to help quantify your tolerance for risk. In order for
your financial advisor to consider whether an investment is right
for you, it is important to understand your risk tolerance.