But even having said all this, I find that the concept of risk tolerance difficult. When other variables unrelated to market prices exist, one’s “risk tolerance” can change a lot.

Risk tolerance is the degree of risk that an investor is willing to endure given the volatility in the value of an investment.

Risk Tolerance. If you have a high risk tolerance, it means that you're willing to make riskier investments with less guarantee of return.If you're an investor with a lower risk tolerance, you'll ...

“Risk Tolerance was a term coined to help shift decision making capacity back to the client,” says Brian Halbert, VP Retirement Services at Pensionmark in Austin, Texas.