After these requirements have been met, you can begin to develop your investment plan. Think carefully about the kinds of assets that are appropriate to your objectives and risk tolerance. Then assess your ability to bear risk by making a careful assessment of your personal financial position, taking into account age, family responsibilities, income level, cash flow, and tax considerations. Even your temperament has a bearing on your risk tolerance. If you are a worrier, confine your commitments to relatively safe securities.
Peace of mind means a great deal.
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