In this episode of Saturday Morning Muse, Andy Temte explores the concept of risk tolerance in personal finance, discussing various factors that influence an individual's willingness and ability to take risks in investments. He emphasizes the importance of understanding one's financial goals, time horizon, age, income, existing portfolio size, knowledge, and stress tolerance. The conversation aims to enhance financial literacy and encourage listeners to make informed decisions about their investments.

Growth requires some degree of risk tolerance. The more self-confident, and the higher our self-esteem, the more calculated and informed risks we’re willing to take. To build self-confidence and self-esteem, we must take risks and be willing to learn from failures and missteps. This virtuous cycle works best when we surround ourselves with positive challengers—people who will simultaneously support and challenge you in an environment of psychological safety.