Risk Tolerance
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Risk Tolerance
Keep in mind your personal risk tolerance when you're developing your investment strategy. Riskier investments like stocks and stock mutual funds consistently do better over a long period of time than any other investment. However, that doesn't mean that your particular stock or stock mutual fund will do well. If each dip in the market is going to give you heart palpitations, stick with less risky investments such as bonds and CDs. Of course, the riskiest money move of all is to not invest your money in anything. In this case, you're guaranteed to lose money after inflation is factored in.
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| Tammi Reynolds |
