When markets are doing well, investors are likely to underestimate risk and chase investments that are too aggressive for their risk profile. Amid the excitement, risk capacity—the ability to take on ...

Call it the “risk paradox.” You know when to play safe—you don’t invest money you’ll need soon in the stock market. So why doesn’t your 401(k) plan see it the same way? Most plan participants ...

A 23-year-old starts a new job. She remembers her parents griping and worrying about their stock investments during the global financial crisis and knows she too would feel terrible if she saw her ...

Source: Flickr user Daniel Lobo. When we think about recipes for well-funded retirement plans, we often start with some basic concepts. One of them is that investing is key to preparing for our ...

Investing means taking a certain amount of risk in order to achieve your financial goals. There are distinct categories and types of risk investors contend with, including systematic and unsystematic ...

I couldn’t say no. My 9-year-old son and his buddy challenged me to a game of basketball in the driveway, and they insisted on the goal being lowered to 7-1/2 feet. Needless to say, I was going to ...

Should a financial advisor ask me for my risk tolerance, then invest accordingly? Or do they use their own proven strategy? This question sets up a false dichotomy. These risk-related investing ...

Pop quiz: What’s the difference between risk tolerance and risk profile? Risk tolerance and risk profile are often used synonymously yet are distinct constructs when determining suitable risk levels ...