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Relations (1)
related 2.00 — strongly supporting 3 facts
Risk tolerance is a core component of financial planning, as evidenced by its inclusion in the book 'Investor Behavior—The Psychology of Financial Planning and Investment' [1] and the advisory guidelines from WT Wealth Management, which state that defining risk tolerance is a necessary step in establishing a personal financial plan [2] [3].
Facts (3)
Sources
The Importance of Macroeconomic Indicators - Learning Spotlight wtwealthmanagement.com 2 facts
perspectiveWT Wealth Management advises that investors should establish a personal financial plan, including defining risk tolerance and investment objectives, before making any investment decisions.
perspectiveWT Wealth Management recommends that individuals establish a personal financial plan before making investment decisions, which includes understanding personal risk tolerance, outlining investment objectives, and defining an investment time horizon.
Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org 1 fact
referenceVictor Ricciardi and Douglas Rice authored the chapter 'Risk Perception and Risk Tolerance' in the 2014 book 'Investor Behavior—The Psychology of Financial Planning and Investment,' edited by H. Kent Baker and Victor Ricciardi.