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Posted by nwvspmffqsof on December 8, 2006, 7:47 am
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Each individual has a risk tolerance that should not be ignored. Any
good stock broker or financial planner knows this, and they should make
the effort to help you determine what your risk tolerance is. Then,
they should work with you to find investments that do not exceed your
risk tolerance.<br>
Determining one's risk tolerance involves several different things.
First, you need to know how much money you have to invest, and what
your investment and financial goals are.<br>
For instance, if you plan to retire in ten years, and you've not saved
a single penny towards that end, you need to have a high risk tolerance
- because you will need to do some aggressive - risky - investing in
order to reach your financial goal.<br>
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
will be low. You can afford to watch your money grow slowly over
time.<br>
Realize of course, that your need for a high risk tolerance or your
need for a low risk tolerance really has no bearing on how you feel
about risk. Again, there is a lot in determining your tolerance....<br>
http://investmentiiek.blogspot.com/
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