Tips and Tricks

Know Your Risk Tolerance

Another factor that will impact your portfolio is your risk tolerance. Even if you’re investing for the long term and want to increase your portfolio’s value over time, your personal risk tolerance may lead you to less risky investments.

Someone with a high risk tolerance might be willing to build a portfolio composed solely of stocks if they have a long time horizon. People who don’t feel comfortable with that risk might want to hold a mixture of stocks and bonds even if their investment goals are long-term.

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