Risk Tolerance vs. Risk Capacity in Retirement

Infographic comparing risk tolerance, your willingness to take risk, with risk capacity, your ability to take risk

Ask most people about their investment risk and you’ll get an answer about how they feel. “I don’t like watching my account drop.” “I can handle some ups and downs.” That’s a real and useful answer, but it’s only half the picture. Risk tolerance is how you feel about losses. Risk capacity is how much … Read more