Personal Risk Tolerance

by ryan on January 2, 2017




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Know your Personal Risk Tolerance

 

Nothing is free in life. If you want to get rich, you have to be able to stomach at least some level of risk.no_free_lunch
But what is the correct level of risk? In practice, not eveyone can stomach the same level or risk. Based on reality, it is pointless to make an investment which might double in a short period of time if by virtue of holding that posibition you cannot sleep well.

To make sure that your peace of mind is never compromised, now go through your risk profile per the personal budgeting spreadsheet. Because your risk profile may change over time, we advised you to redo the risk profile at yearly intervals.

Now, having determined your risk tolerance, use it!

This means applying what your have learnt about yourself to each of your investment programmes with their different time horizons. You will find that we have done all the hard work for you already and the suggested assets allocations vary according to your risk tolerance and the amount of time you have reach your goals.

Templates:

excel-templates-for-how-to-budget-sheet

excel-templates-for-actual-vs-budget-income




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