Best Financial Advisors in Pasadena, CA

Determining Your Risk Tolerance When Investing The news is always full of doom and gloom, especially when it comes to the economy. The past couple of years have been no exception—and have created even more anxiety and worry for people around their finances. In stressful economic times like these, it can be tempting to panic. After all, it’s human nature to be averse to loss, and the pain of losing is more powerful than the potential to achieve gains. The problem is, when we make emotional decisions, we sometimes act irrationally in an attempt to avoid loss, causing us to lose even more. When it comes to your finances, you know investing is important to grow your portfolio into a nest egg that will sustain you in the future, but how do you know how much risk is too much? Here are some things to consider.