Know Risk Tolerance at Different Stages of Life

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As an investor, you’ll always need to deal with the risk of some kind. But how can you manage the risk that’s shown up in the recent volatility of the financial markets? The answer may depend on where you are in life.

For example, when you’re first starting out in your career, with decades to go until you retire, you could take on a higher risk level as you invest primarily for growth.

When you’re in the middle stages, you might be saving for retirement and for your children’s college education, so you still need to invest for growth – but you’ll also want to balance your investment mix.

Then, when you’re closing in on retirement, you may lower your risk level by relying on the cash and cash equivalents in your portfolio to meet your daily expenses for the next few years.

Finally, when you’re retired, you can help control risk by carefully monitoring how much you withdraw each year from your retirement accounts.

By being aware that your risk tolerance can change over time, you can make better-informed investment decisions at every stage of your life.

If you have any questions, please contact me at 980-859-2549 or by e-mail at

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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