Risk tolerance
How much loss you can take without changing course. Usually overestimated until tested.
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Words beside it
- credit risk
Credit risk is the chance that the person or organization you lent money to will not pay you back as promised. A higher credit risk means there is a greater possibility of losing some or all of your money.
- Interest rate risk
The chance a bond's price falls because rates rose.
- Sequence of returns risk
The danger that bad years arrive early in retirement when you are withdrawing.
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