Risk Tolerance

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Risk Tolerance

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An industry term to describe your emotional tolerance for volatility of returns. This term should actually
be your volatility tolerance because we define risk as the chance of losing money and no one likes
to lose money. When we talk about your comfort level, we are really talking about how much volatility
you are comfortable with. We classify our client’s tolerance for volatility as either: Conservative,
Moderately Conservative, Balanced, Growth or High Growth.
Also (incorrectly) referred to as your risk profile.