What is a comfortable risk tolerance level? You are the best judge of what is a comfortable risk tolerance level for you. Comfort can come from understanding the factors involved in investment risk and investment reward. Better-informed investors make better judgments about how much risk they are willing to tolerate which is why we provide so much educational content on this website. We believe that education builds trust, trust builds confidence, and confidence builds comfort. With the appropriate risk tolerance level you will not spend time worrying about the short-term performance of the markets or your investment portfolio. Back To Top What is the difference between Low and Low-to-Medium Risk? Low-risk investments tend to grow slowly with very little price volatility. Medium-risk investments are positioned to grow faster but experience modest amounts of volatility. Risk can be managed, but not eliminated, by diversification across different asset classes, different investments, different geographical regions and different mutual fund managers. Back To Top Will my risk tolerance level affect which Money Masters you select for my portfolio? Your risk tolerance level will not affect which Money Masters are selected for your portfolio. All Money Masters Investment Portfolios contain the same fifteen Money Masters. However, the percentage of your assets allocated to each Money Master will vary depending upon your goal and risk tolerance level. For example, in a Growth Portfolio, the stock Money Masters will invest a higher percentage of your total assets. Back To Top Why do I have to pick a specific risk tolerance level? When you choose your risk tolerance level you allow your Registered Investment Advisor to make an informed decision about where and how your assets should be invested to fulfill your investment objectives. This information leads to the exact distribution of your assets into each of our Money Masters funds. Back To Top Does the Federal Deposit Insurance Corporation (FDIC) protect my account? No. The FDIC is set up to protect the money that is invested into a bank account. The R Account is an investment account, not a bank account, so the FDIC is not applicable. Back To Top