Investing typically involves taking on some risk in order to generate higher return potential.

Too much risk could mean higher fluctuations in your investment performance. On the other hand, too little risk could result in returns that are too low to achieve your goals.

Your risk profile can influence the time required to meet your financial objective and how much of your objective you can achieve.

By having a clear understanding of risk tolerance, you’ll be able to better determine which investments are appropriate and which ones to avoid.