Understanding Risk Tolerance: A Guide for Xcel Energy Employees Navigating Retirement Changes

Healthcare Provider Update: Healthcare Provider for Xcel Energy Xcel Energy primarily collaborates with UnitedHealthcare to provide healthcare benefits for its employees. This partnership allows Xcel Energy to offer a range of health plans that cater to the diverse needs of its workforce. Potential Healthcare Cost Increases for Xcel Energy in 2026 Looking ahead to 2026, Xcel Energy employees should be prepared for significant healthcare cost increases as industry trends suggest substantial premium hikes. Reports indicate that some states may see ACA marketplace premiums soar by over 60%. In addition to this, employers like Xcel Energy may shift more costs to employees, with many anticipated to increase deductibles or coinsurance due to rising medical expenses. As the market braces for these changes, it becomes essential for employees to stay informed about benefit adjustments, optimize their healthcare plan choices, and explore proactive financial strategies to mitigate the impact of these increased costs. 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 Xcel Energy 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 Xcel Energy 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 Xcel Energy 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).