Risk vs Returns
The higher the risk, the higher the expected returns.
Risk tolerance is revealed by the investments you've already made and risks in other parts of your life.
Risk tolerance depends on your
- age
- older → more conservative since lack time to rebuild savings if lost
- personality
- lifestyle (e.g., bungee jumping)
- employee vs entrepreneur
- where you live
- investment experience
- good results → more tolerant
- bad results → less tolerant
page revision: 7, last edited: 28 Jul 2007 17:20