But there’s an essential investing concept that merits a closer look because it’s often folded into larger discussions:
You probably know that risk is the chance that a given investment may not deliver the expected return—and that there’s a relationship between risk and return.
This is where your risk tolerance comes in: it’s a combination of investing intuition and analysis. As you make your financial plans and investing choices, it pays to know your stomach for risk—and balance that with a hard-headed look at what the likely returns might be.
Sleep tight. Why do women in particular need to understand their risk tolerance?
*This is an example, not advice to invest in medical technology. photo source: ellensgreenart’s shop on etsy