Is there some kind of stress tests that can be done on a portfolio, to check risk tolerance?
When you are working, you can use multiple of number of years of income savings as a measure. For example, a 50% fall in stocks means 4 years of income savings gone. This is okay for me, I can recover by working for 4 years more. Are there any other such measures?
When you are working, you can use multiple of number of years of income savings as a measure. For example, a 50% fall in stocks means 4 years of income savings gone. This is okay for me, I can recover by working for 4 years more. Are there any other such measures?
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