Risk Tolerance
InvestingThe degree of variability in investment returns that an investor is willing to accept based on their goals and timeline.
Example
Example: Consider an investor building a $100,000 portfolio. Risk Tolerance — the degree of variability in investment returns that an investor is willing to accept — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.