{"id":1666,"date":"2021-07-19T13:13:08","date_gmt":"2021-07-19T18:13:08","guid":{"rendered":"https:\/\/lifeannuities.com\/blog\/?p=1666"},"modified":"2021-07-19T13:13:10","modified_gmt":"2021-07-19T18:13:10","slug":"take-the-ability-to-sleep-at-night-test","status":"publish","type":"post","link":"https:\/\/lifeannuities.com\/blog\/retirement\/take-the-ability-to-sleep-at-night-test","title":{"rendered":"Take the &#8220;ability-to-sleep-at-night&#8221; test"},"content":{"rendered":"\n<p class=\"has-medium-font-size\">If your investment&#8217;s returns have been going up and down like a roller coaster ride and keeping you up at night, then understanding a fundamental investment principle called Risk\/Return Trade-off may help you.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The concept is also known as the &#8220;ability-to-sleep-at-night test&#8221;.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">A common misconception is that higher risk equals greater return. The Risk\/Return Trade-off tells us that higher risk gives us the possibility of higher returns. Remember, there are no guarantees.<br><br>You should find a balance between your desire for higher returns and your willingness to accept the higher levels of uncertainty (risk).<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>What is Risk? <\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">Many investors view <a href=\"https:\/\/lifeannuities.com\/articles\/2018\/investment-planning-for-retirement-20180413.html\">investment risk<\/a> as the possibility of losing part of your capital. Think of risk as the potential for a negative return on an investment &#8212; the higher the probability of a negative return, the greater the risk. <\/p>\n\n\n\n<p class=\"has-medium-font-size\">Additionally, the greater the range of possible returns associated with an investment, the higher the risk. Therefore, risk refers to the variability or volatility of an investment&#8217;s return. If an investment&#8217;s value fluctuates only slightly from year to year, the investment has relatively low risk, while wider value fluctuations reflect a relatively high risk.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">We want to help you reduce the risk you have in your portfolio while maintaining or improving your return potential. <a href=\"https:\/\/lifeannuities.com\/contactus.html\">Contact<\/a> us for further clarification or go to our website to learn more about your personal risk tolerance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your investment&#8217;s returns have been going up and down like a roller coaster ride and keeping you up at[&#8230;]<\/p>\n","protected":false},"author":1,"featured_media":1667,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement"],"_links":{"self":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/1666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/comments?post=1666"}],"version-history":[{"count":1,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/1666\/revisions"}],"predecessor-version":[{"id":1668,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/1666\/revisions\/1668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/media\/1667"}],"wp:attachment":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/media?parent=1666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/categories?post=1666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/tags?post=1666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}