Tuesday, May 21, 2019
MERS CentsAbility Blog

 

What’s Your Risk Tolerance?

What’s Your Risk Tolerance?

0:58 Min Read

Risk tolerance is the amount of risk you're willing to take with your investments.

As a general rule, younger investors have more time to keep their money invested and can accept more risk than older investors who will need to access their money sooner, such as in a few months or years.

Market volatility is a serious risk factor for short-term investors because the value of your investments may be down when it's time to withdraw your funds. But, for long-term investors, the risk is lessened because you can typically ride out the lows of the market. Therefore, the longer you have to invest, the more risk you may be comfortable with.

However, time in the market is only one consideration when you think about your risk tolerance. Your own "comfort level" is also an important consideration. If your investments are in asset classes that tend to fluctuate, you must be willing to accept that the value of your investments may drop considerably from time to time. Alternatively, if you are invested very conservatively, you must consider the chance that your returns will not keep up with inflation in the years ahead.

You can determine your personal level of risk tolerance by taking the Risk Advisor assessment quiz in your Full Picture report builder. Log in through your myMERS account and under the "Action Plan" tab, click the link to open the Risk Advisor tool.


Latest RSS Link RSS

Categories: All, Investments

MERS Social Media MERS Facebook MERS TwitterMERS LinkedInMERS Youtube

Disclaimer
The information contained in this Web site is being made available as a public service. The information is not intended to constitute legal or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Web site are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Web site. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information?s accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.MERS (6377).