5 Ways to Invest Your Retirement Savings

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2. Find Your Tolerance for Risk

By using the stock market to your advantage, you stand the best chance of growing your retirement sum. But, you’ll need to find your tolerance for risk. Some people enjoy the thrill of a gamble, but for others it’s hard to sleep at night. You’ll need to find a happy medium when you choose to invest to avoid those sleepless nights. However, if you choose low-risk investments or keep your cash safe in an account, your returns are going to be poor, and you even lose money due to inflation. So, it’s better to take a level of risk you can handle, to create better returns.

To find your happy medium you can use the Rutgers University Cooperative Extension investment risk questionnaire. Answer the questions provided, and the questionnaire will provide you with a percentage on how much risk you can tolerate. However, the questionnaire is just a beginner’s guide, if investing more than half your fund feels too risky, then don’t do it.