Financial literacy education for the modern era.
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Investment Psychology
Risk Tolerance
Your ability and willingness to endure declines in investment value. Understanding your risk tolerance helps you build a portfolio you can stick with.
Quick Risk Assessment
Question 1 of 4
How would you react if your portfolio dropped 20% in a month?
Risk Capacity
Your financial ability to absorb losses. Factors include income stability, emergency fund, time horizon, and other assets.
Risk Attitude
Your psychological willingness to take risk. Some people lose sleep over volatility; others see it as opportunity.
Time Horizon
Longer time horizons allow more risk-taking since you have time to recover from downturns.
Investment Goals
What you're saving for affects how much risk is appropriate. Retirement in 30 years vs. a house in 3 years.
The Risk-Return Spectrum
Lower Risk / Lower ReturnHigher Risk / Higher Return
Generally, higher potential returns come with higher potential losses. There's no free lunch in investing.