Step 2: Balance your risk and reward
Different investors have different tolerances for risk. What’s important is that the strategies and investments you choose are aligned with the level of risk you’re willing to take.
Finding your comfort zone
There are two primary factors that determine your risk tolerance: how much time you have to recoup any loss in value (time horizon) and your willingness to accept uncertainties in your investment performance (risk aversion).
Your AXA Advisors financial professional has an easy, yet sophisticated way to help determine your personal tolerance for risk based on these factors. This will help guide the recommendations in your financial strategy. Keep in mind that there is no “correct” balance, just one with which you’re most comfortable.