Skip to Content
Investing Specialists

Is Your Risk Tolerance at War With Your Risk Capacity?

What the difference is--and how you can help mend fences.

Mentioned: , , , ,

Note: This article is part of Morningstar's May 2016 Risk Management Boot Camp special report. An earlier version appeared Nov. 18, 2014.

A 23-year-old starts a new job. She remembers her parents griping and worrying about their stock investments during the financial crisis, and knows she too would feel terrible if she saw her hard-earned investing dollars go down in value. She decides to steer her 401(k) contributions to the stable-value fund, which seems to be the safest option in her company's plan.

To view this article, become a Morningstar Basic member.

Register for Free

Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.