The questions that can skew a risk tolerance reading

The questions that can skew a risk tolerance reading

clock • 4 min read

Many advisers need to change their view on what constitutes risk tolerance, argues Paul Resnik...

Risk means different things to different people - danger, uncertainty, opportunity or thrill. In reality, risk arises in any situation where there is more than one possible outcome of differing value to the individual. Individuals vary widely in how well they tolerate financial risk. Some investors don't like risk so they stick to investing in term deposits, no matter how low the returns. Others swear by shares despite previous losses. Many people insure their home and contents but not their life. We all differ in how we manage and protect our finances. An enduring characteristic ...

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