Risk Tolerance is Key When Looking to Invest

As Director/Investments with the CR Wealth Management Group of Stifel, David Stone works alongside 11 financial advisors who serve high net worth clients. Working closely with a diverse client base, David Stone and his team utilize factors such as risk tolerance to develop balanced investment strategies.

Risk tolerance is one of the most important considerations when investing. Using this tool, you can better determine how much variability you should allow regarding the financial worth of your investments. As such, risk tolerance will provide a framework for all of your future investment activities.

The most aggressive investors have a high risk tolerance, which means that they are willing to take on risky investments in return for the promise of higher financial compensation. Long-term investments are best suited for those with higher risk tolerance.

If you find that you have a low risk tolerance, you should ask your financial advisor to find investment opportunities that have a goal to protect your principal. As such, low-risk investments are an attractive option if you are seeking returns in a short period of time.

Article provided by David Stone, Director/Investments with Stifel, Nicolaus & Company, Incorporated, Member SIPC & NYSE, who can be contacted in the New York, New York office at (212) 328-1000.

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