Understanding Risk Tolerance: A Guide for Foot Locker Employees Navigating Retirement Changes

Healthcare Provider Update: Healthcare Provider for Foot Locker: Foot Locker primarily offers health insurance coverage through a partnership with UnitedHealthcare. This collaboration allows Foot Locker employees access to a variety of health benefits, ensuring comprehensive coverage for their medical needs. Potential Healthcare Cost Increases in 2026: As we approach 2026, Foot Locker employees may face significant healthcare cost increases, largely driven by the anticipated expiration of enhanced subsidies for Affordable Care Act (ACA) marketplace plans. Insurers are projecting premium hikes of up to 66% in specific regions, and without congressional intervention to extend these subsidies, many employees could see their out-of-pocket costs rise dramatically-possibly exceeding 75%. This combination of heightened medical expenses and the loss of financial support from federal initiatives presents a challenging landscape for Foot Locker employees relying on ACA coverage. As these costs escalate, proactive financial planning becomes crucial for affected individuals. 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 Foot Locker 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 Foot Locker 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 Foot Locker employees in deciding which individual investments are appropriate for them, as well as how their investment dollars should be allocated among different investment classes.

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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).