Risk Tolerance: When it comes to your savings, how much risk can you tolerate?
🔴Are you someone who likes to put your money in super high-risk stocks, were you could potentially lose a LOT if the market crashes, but there is also a high reward when the market is up?
🟢Or do you prefer to have extreme protection where your money is locked into a CD (Certificate of Deposit), where it is growing at a much lower, fixed interest rate for a guaranteed amount of time? With no surprises, not much growth, and potentially higher taxes...
🟡Or do you fall somewhere in between those two extremes with some risk being tolerated, but you aren't willing to gamble your investments and lifetime savings at a higher cost?
Reassessing every so often, especially at different stages in your life can guarantee that you, your finances, and your financial goals are well aligned. How aligned would you say your current investments are with your financial goals?
Keeping in mind that your risk tolerance can change over time, with age and your priorities, how would you rate yourself now on scale of 1 to 10?