The Glossary

Markets

Risk Tolerance

How much decline you can hold through.

In plain language

Part math, part temperament: how far your investments could fall before you'd sell at the worst possible moment.

Why it matters

The best plan you'll abandon is worse than the decent plan you'll keep.

Put it to work

Own more. Owe less.

Every word here shows up in a real decision. Run your own number, or get the next one in The Letter.

Related words