Understanding Risk Tolerance: A Guide for Otis Worldwide Employees Navigating Retirement Changes

Healthcare Provider Update: Healthcare Provider for Otis Worldwide Otis Worldwide Corporation offers healthcare benefits through a variety of plans tailored to their employees, which typically include options from major health insurance providers such as UnitedHealthcare, Anthem, or Aetna, depending on the location. Potential Healthcare Cost Increases in 2026 In 2026, healthcare consumers, including employees of Otis Worldwide, may face significant premium increases as the expiration of enhanced Affordable Care Act (ACA) subsidies looms. Insurers estimate that premiums could rise by as much as 75% for many individuals reliant on these financial assists, with some states seeing hikes over 60%. Coupled with rising medical costs driven by inflation and increased demand, such changes will likely place a heavy financial burden on consumers, highlighting the urgent need for proactive healthcare cost management strategies in the coming year. 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 Otis Worldwide 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 Otis Worldwide 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 Otis Worldwide 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).