The relationship between wealth accumulation and risk tolerance is referred to as empirical results.
The methodical and disciplined process of acquiring assets in order to accomplish specific important objectives is known as wealth accumulation. Without a defined objective, wealth growth is similar to wealth hoarding in that it increases tension and anxiety.
The degree of risk an investor is willing to take is known as risk tolerance. Investors are typically questioned in order to determine their risk tolerance. Assessing their time horizon, assets, and need for income could be part of this.
Risk tolerance typically rises as money increases but declines as people get older. Personal experience and local trust both have a big impact. For high-income households, this influence on risk tolerance is especially pronounced. Risk tolerance is not much impacted by current social security.
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