How can I set my financial goals based on my risk tolerance?

How can I set my financial goals based on my risk tolerance?

To set your financial goals, first assess your risk tolerance. Are you comfortable with high-risk investments, or do you prefer safer options?

I think I'm more of a conservative investor. I don't want to lose my money.

That's a good starting point! For conservative investors, focusing on stable investments like bonds or dividend stocks might be ideal.

What kind of returns can I expect from those types of investments?

Typically, conservative investments may yield lower returns, around 3-5% annually, but they offer more stability and less risk.

How do I balance my portfolio if I want to include some higher-risk options?

You can consider a balanced approach, allocating a small percentage to higher-risk assets while keeping the majority in safer investments.