The Company You Keep
Click here to speak with a local agent / registered rep.

Ask Joan

Ask Joan

Week of November 9th, 2007 •    Archive

Ms. Sabella has managed MainStay Balanced Fund since its inception in 1989. She is a Managing Director and has been with NYLIM since 2000. Prior to that, she worked at Towneley Capital Management, Inc. for 22 years. Ms. Sabella is a member of the Financial Planning Association, Financial Women's Association, and the CFA Institute. She holds a B.B.A. from Baruch College, is a Certified Financial Planner, and is a Chartered Retirement Planning Counselor.

Got a question you'd like Joan to answer?Ask Joan Now

Q:Now that I have decided to start investing, I've heard a lot about risk tolerance — can you explain that concept in plain English?

A: Risk tolerance is the degree of uncertainty that an investor can handle with a volatile market.

The suitability of an investment varies according to someone's risk tolerance, age, income requirements, and their investment goals. Generally, the younger the investor, say a 30-year-old, the more risk she could take on since there is a longer time horizon to accumulate wealth even with some market declines. Someone with a low risk tolerance is considered a conservative investor while someone with a high risk tolerance is considered an aggressive investor. Many investors lie between the two and are considered moderate investors. There are many online tests to determine one's risk tolerance.

Rate
Rating: 0/0 (0 votes cast)

To Top
 
Ask Joan

= external link that opens in new window...more

© 2012 New York Life Insurance Company, New York, NY. All rights reserved.  Privacy Policy  Site Help/Disclosures