The Importance Of Risk Tolerance

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Risk Tolerance
Risk tolerance is an important aspect in investing, because it determines an how an individual will respond to certain situations when making an investments. In our lifetime, we will invest our money into commodities and expenses for enjoyment, security, or to make a profit. Regardless of the result, different people respond differently when it comes investing. There are those who are conservative and like to play it safe. Others are aggressive and like the high risk, high reward investments. At a score of 32, I have a tolerance score that is above average. When making an investment, I am cautious. Before I invest, I like to research and gain familiarity of a product before purchase. But I also have a very ambitious side that
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Although it is a tough subject, death is inevitable and should not be ignored. When I pass, I want those around me to financial stable. In my will, I will make sure that all my debts are paid off first, so that my liabilities do not transfer over to my existing family members. In my absence I will most likely designate my brother as a personal representative and to carry out the provisions of my will. I trust my brother, because he will put my beneficiary 's interest before his. In order to prevent my net worth from being used recklessly, I will entrust my brother to make sure that the money going to my beneficiaries are allocated toward education and financial matters first, before the money is spent on items of personal use. From what I know, my parents do not have a will yet. My grandparents on the other hand, have their estate in order. In their will, my grandparents have listed their beneficiaries and designated a disclosed amount to every grandchild in our family. Similar to my will, they only ask that the funds given to use are used toward education and financial matters, before it is spent on personal …show more content…
Often times people will struggle with managing their personal finance, because they lack financial knowledge. From this class, I feel like I have learned a lot more than just managing my finances, but also planning ahead for future events such as retirement and death. One of the things that intrigued me most about this course was due to the realization of how significant managing my finances were, especially at my current age. Financial problems are imminent depending where you are in life. Many of these problems can fluctuate from paying off debts, overspending, insufficient funds, etc. In order to deviate from such negative externalities it is important that I continue to gain financial knowledge of what I learned in class and apply it to everyday life. Unlike many of the classes in the past, I feel that this class it the most applicable. Through the course, I learned to improve my budgeting, through apps like Mint. I also learned about savings plans such as 529 plan which I plan on investing in for my

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