Written By: John E. Grable and Abed Rabbani

This study was designed to determine if a general description of a person’s willingness to take risks- risk portrait as phrased in this study-can be developed for individuals nearing retirement (aged 45-53). Using data from the 2010 wave of the National Longitudinal Survey of Youth (NLSY79), a latent risk-tolerance construct was developed consisting of driving, financial, occupational, health, interpersonal, romantic, and major life change risk tolerance. These seven items were found to be positively associated with each other. Each of the items also loaded highly onto one factor within a principal components analysis. Findings from the study suggest that risk tolerance is most likely a generalized attitude, not a domain-dependent attitude, held by individuals. Results suggest that including the seven risk items used in this study into a client data gathering form can provide useful information in strengthening the client-counselor/planner relationship. Opportunities for further research, based on this study, are presented.

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