Weighing the risks.
Higher-risk investments offer the possibility of larger rewards. Less risky investments are more stable and less likely to bring a larger reward.
A great way to gauge how you should invest is to figure out your risk tolerance. Everyone's risk tolerance is different - we suggest doing some online research to help figure out where you land.
Check out the video for more details on risk tolerance as well as the risks and rewards of investing.
Your Chapter 3 Checklist:
- Watch the Risk vs. Reward video
- Download the Just the Facts: Investing Worksheet
- Find out your risk tolerance