Your risk tolerance is the amount of variability in investment returns that you would be willing to ‘tolerate’ or withstand. Do you have a realistic understanding of your own risk tolerance?
Everyone’s is different and choosing how and when to invest is not a scientific process. Instead it is very personal and takes common sense.
To begin can you answer some questions about yourself?
Your answers will give you your personal risk tolerance. If you are young and/or have a steady, well-paying job and can ignore the short-term bumps to look at the long-term view, you can probably take a more risk. But if you are relying on your investments as your only source of income, then taking less risk makes more sense.
Everyone’s circumstance is different, therefore risk tolerance varies.
Solaris Advisors can help you to figure out your risk tolerance and create a portfolio that is good fit for you. Contact us here to learn more.