Tolerance for risk normally increases with age.

Question

Quizplus · Accepted Answer

Research has shown that people's tolerance for risk actually tends to decrease with age. This is because as people get older, they generally have fewer opportunities to recover from financial losses and therefore become more cautious with their investments. Additionally, older people tend to have a clearer understanding of their financial goals and may prioritize preserving their wealth over taking risks in order to grow it.

Tolerance for Risk Normally Increases with Age