In order to invest in the stock market, you have to be willing to accept some risk. But you also have to be able to sleep at night. So, it’s important to think about how much risk you’re comfortable with. Once you become a member, we'll help you figure this out using the risk tolerance questionnaire in our Getting Started section.
The other key factor that helps determine how much risk is appropriate for you is how much time you have to achieve your investing goals. If you’re investing in order to build a nest egg for your later years, that means deciding when you’d like to retire. The more time you have, the more risk you can afford to take.
At the intersection of your risk tolerance and investing time frame is a level of portfolio risk that’s appropriate for you.