Risk tolerance is a big term in typical financial planning. Basically, risk tolerance is the amount of nerve you have to watch your investment portfolio lose money without flinching. According to typical financial planning, the higher your "risk tolerance" the more money you should risk losing to try and get big returns.

But typical financial planning isn't working out so good for most Americans. People are running out of money in retirement and the median savings for someone age 65 or older is only $63,000.

If you are allergic to risk and you hate losing money, if you believe that when you're 65 you should have more than $63,000 in savings then you probably shouldn't follow typical financial planning.

Doing nothing is not enough though, you must do something better, that's what we talk about on episode 248 of Wealth Talks. Listen Now.

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