How much uncertainty
can you live with?

Risk tolerance is not bravery. It is the combination of your comfort, your timeline and your ability to absorb a loss without derailing your life.

01The JSE falls 15% during a difficult economic year. What do you do?Sell everything before it falls furtherReview the companies and rebalance if neededKeep contributing to quality investments at lower prices

02A hurricane disrupts tourism across several islands. How concentrated is your portfolio?Most of my money is in one tourism stockI own several sectors and keep emergency cashI am diversified across countries, sectors and asset types

03You are saving for university fees in US dollars in two years. What matters most?Protecting the money and managing currency riskSome growth, but limited volatilityMaximum growth even if the amount falls sharply

04A promising regional share trades infrequently. How do you feel about possibly waiting to sell?I need quick access to all of my moneyI can accept limited liquidity for a small positionI am comfortable holding for many years

05If J$500,000 invested became J$400,000 temporarily, you would…Lose sleep and sellFeel uneasy but review the planAccept it as part of long-term investing

06When do you expect to need most of this investment?Within 2 yearsIn 3–5 yearsMore than 5 years from now

READY FOR THE NEXT LESSON?

Build a strategy around your real life.

Continue lesson ↗

How much uncertaintycan you live with?

Build a strategy around your real life.

How much uncertainty
can you live with?