Risk Tolerance (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

Your personal comfort level with the possibility of losing money on your investments, which helps determine your investment choices.

What to consider

Keep track of your revolving credit to manage your debt effectively.
Understand the interest rates and fees associated with it.
Regularly review your balance to avoid overextending yourself.

Real world scenarios

Before investing in volatile stocks, Julia assessed her risk tolerance to decide how much of her portfolio should be allocated to safer assets.

Related terms

Investments & Retirement

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