Understanding Risk Tolerance: A Guide for BlackRock Employees Navigating Retirement Changes

Healthcare Provider Update: Healthcare Provider for BlackRock BlackRock, a global investment management firm, does not directly provide healthcare services. Instead, they invest in health-related companies and manage assets for clients in various sectors, including healthcare. The specific healthcare providers utilized by BlackRock for employee health benefits may vary based on their corporate policies and the selection of local networks across their operational regions. Potential Healthcare Cost Increases in 2026 The healthcare landscape is projected to face significant challenges in 2026, primarily driven by sharp increases in Affordable Care Act (ACA) premiums. Record hikes are anticipated, with some states, like New York, seeing rises of over 66%. This surge is heavily influenced by the potential expiration of enhanced federal subsidies that have kept costs manageable for many enrollees. Furthermore, escalating medical expenses combined with rising claims from hospitals and providers signal that consumers could see their out-of-pocket premiums jump by 75% or more. The combination of these factors highlights a troubling trend that could leave millions of Americans with limited options for affordable healthcare coverage. Click here to learn more

The world of investing is very subjective--the investment plan that’s right for you depends largely upon the level of comfort that you have when it comes to risk. We'd like our clients from BlackRock to remember that you can’t completely avoid risk when it comes to investing, but it's possible for you to manage it.

There are two aspects of risk tolerance for BlackRock employees to consider: (1) the capacity of your investment plan itself to absorb losses, and (2) how comfortable you are personally with risk. The first aspect can be quantified--the more flexibility your investment plan has when it comes to potential loss, the more risk your plan can tolerate. For example, as we’ve discussed, a long investment time horizon may allow you to take on more risk than a short time horizon.

'You can’t completely avoid risk when it comes to investing, but it is possible for you to manage it..'

The second aspect, how comfortable you are personally with risk, is more of an emotional measure, and depends on many factors, including your objectives, life stage, personality, and investment experience. Some investors are comfortable with a high degree of risk, while others can tolerate only minimal risk. Individual risk tolerance is an important factor for BlackRock employees in deciding which individual investments are appropriate for them, as well as how their investment dollars should be allocated among different investment classes.

Articles you may find interesting:

Investors are typically grouped into three categories for purposes of discussing risk tolerance: aggressive (those who have a high degree of risk tolerance); moderate (those willing to accept some degree of risk), and conservative (those who are risk averse).