Risk Tolerance

What is Risk Tolerance?

Risk Tolerance is your willingness to bear the risk of potentially losing some or all of your money in exchange for higher potential returns.

For example, an aggressive investor, or one with a high risk tolerance, is more likely to risk losing money in order to get better results.

It’s important to be truthful to yourself when considering your risk tolerance level because the last thing you want to do is prematurely sell your investments in a panic.