All kinds of investment instruments carry investment risks, and the risk is often directly proportional to the potential returns. When the ability to generate profits declines, sometimes even the capital investment can be lost. You need to evaluate how much risk you can afford so that your quality of life won't be affected by improper financial management. According to the analysis results conducted by financial experts on the risk tolerance for different age groups, the formula derived is: **Risk Tolerance Percentage = 100 - Current Age**. This formula can serve as a reference when investing. For example, if you are 23 years old, according to the formula, your risk tolerance percentage would be 77 (100 - 23 = 77).