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tony

Your Risk Tolerance Might Not Be What You Think

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Anybody who has ever been to a financial adviser knows the drill. The adviser begins by asking you to fill out a questionnaire, aimed at getting at a key measure: your appetite for risk. By knowing how much risk you’re able to tolerate, the adviser knows how much you’re willing to lose to get where you want to go.

The adviser can then construct a portfolio that reflects your risk tolerance.

Pretty simple, no? If only.

 

https://www.wsj.com/articles/your-tolerance-for-investment-risk-is-probably-not-what-you-think-1505096160

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