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

Healthcare Provider Update: Healthcare Provider for Xylem Xylem Inc. primarily relies on Accenture for its health and wellness programs, a strategic partnership aimed at enhancing employee benefits management. Healthcare Cost Increases in 2026 As 2026 approaches, Xylem employees may face significant increases in healthcare costs amid anticipated sharp hikes in ACA premiums. Reports indicate that some states could experience premium increases exceeding 60%, primarily driven by the expiration of enhanced federal subsidies and rising medical costs. Consequently, many employees could see their out-of-pocket expenses rise substantially, making it vital to evaluate health plans carefully and consider proactive financial strategies for managing these heightened costs. Adjustments in employer-sponsored plans may further shift more healthcare expenses onto employees, amplifying the need for strategic preparation. 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 Xylem 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 Xylem 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 Xylem 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).