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

Healthcare Provider Update: Healthcare Provider for Yellow For employees of Yellow, the primary healthcare provider associated with their health insurance offerings is likely to be UnitedHealthcare. UnitedHealthcare participates in various insurance plans across many states and is known for providing extensive network coverage, which would be beneficial for Yellow employees. Potential Healthcare Cost Increases in 2026 As 2026 approaches, healthcare costs for Yellow employees who rely on Affordable Care Act (ACA) marketplace plans are poised to rise significantly. Premiums could increase by over 60% in certain states, compounded by the potential expiration of enhanced federal subsidies. This unprecedented surge may lead to out-of-pocket premium payments rising by more than 75% for 92% of marketplace enrollees, according to industry forecasts. The combination of soaring healthcare costs, including hospital and prescription drug rates, along with aggressive rate hikes from major insurers sets the stage for a challenging financial landscape in 2026 for consumers. 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 Yellow 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 Yellow 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 Yellow 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).