Wotv Blog

Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and should make the effort to help determine what is your risk tolerance. Then, they must work with you to find investments that do not exceed your risk tolerance. Determine risk tolerance involves several things. First, you need to know how much money you have to invest, and what your investment and financial goals are.

For example, if you plan to retire in the next ten years, and you have not saved a penny for that purpose, you need to have a high risk tolerance – because you need to do some aggressive – risky – investing in order to reach your financial goal. On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance is low. Can afford to watch your money grow slowly over time. (continue reading…)