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Risk Tolerance Survey: Backing Up Investment

Friday 12 April 2019 at 11:01 am.

We need money!

Admit it! Everybody in this world needs money, or else, one cannot survive. It’s a fact and for sure, all will agree with me!  People earn money basically in two forms:  by working for yourself or someone else, or letting your assets work for you. The second form is a bit risky, yet it could be the most fulfilling form of earning. And that would only mean INVESTMENT.

Investment is good. Saving your money on your pocket or in banks won’t give you enough compared to what you can get when you invest.  Investors simply generate money through interest on what they have invested, or buying assets that increase in value. But investing isn’t that easy. It needs proper decision making and of course, an investor should be willing to take risk. Get more Interesting details about risk tolerance survey on stackup.

What is Risk Tolerance?

Risk tolerance is basically a market risk: volatility and the ups and downs of market that an investor can tolerate.  This is very important because in investing, knowing the strategy is not just enough. One should need a sense of volatility that an investor can handle comfortably. It’s determining how far the market will fall before an investor panics and sell assets. 

Risk Tolerance Survey

Quantifying risk tolerance is hard. Why? Because it is more on the subjective aspect and people vary on how they perceive risk.  Good thing is that, there is now Risk Tolerance Survey that could help you determine your level of risk tolerance before you dive into investment.  Result of these risk tolerance surveys would eventually help you with your decision making.  In fact, there is now what we call Risk Tolerance Software such as Riskalyze that would help one assess his/her risk tolerance. This is not just helpful to investors but also to all professionals who deal with finance such as financial analysts, financial coaches and advisors, and businessmen.