Understanding Risk Tolerance Questionnaires At Fidelity
How to roll over a 401(k) to Fidelity Capitalize from www.hicapitalize.com Understanding Risk Tolerance Questionnaires at Fidelity What is Risk Tolerance? Risk tolerance is an individual's level of comfort when taking on financial risks. Risk tolerance is unique to each person and is based on their financial situation, life stage, and financial goals. What is a Risk Tolerance Questionnaire? A risk tolerance questionnaire is a series of questions used to determine an individual’s level of risk tolerance. The answers to the questions provide financial advisors with an understanding of each individual’s level of risk. Why is it Important to Understand Risk Tolerance? It is important to understand an individual’s risk tolerance in order to create a financial plan that meets their goals and makes them comfortable. A financial advisor can use the answers from the questionnaire to create a portfolio that is tailored to each individual’s risk tolerance. How Does Fidelity Use Risk Toler...