#540 - I’m Afraid to Buy Stocks in Retirement! What Should I Do?

What is your risk tolerance? What does risk tolerance even mean? Why does it matter?

We’ll explore these questions as I answer one of our listener’s questions on getting back into the stock market with a low risk tolerance.

Listen in to learn why he may not need to follow the traditional way of doing things.

Modern investment theories aren’t for everyone

Modern portfolio theory is an investment theory that attempts to maximize the expected return for an investor’s given level of risk.

This is how financial advisors have developed asset allocation models for years. They usually have their clients take a risk assessment quiz to create the ‘right’ model and have their clients model their portfolios based on their risk tolerance.

Even though this is the traditional model–your retirement plan can look different. That’s the beauty of retirement planning. You can create your own model based on your own needs. Listen in to hear why this listener could go against the grain and still come out on top.