When you hear the term “risk” in a conversation, your heart may skip a beat.  The thrill of doing something risky can be very tempting for some people.  I have a niece who wanted to experience sky diving.  I thought, good for her! But I knew that thrill wasn’t for me. When it comes to your money, the term “risk” may cause a different type of excitement.  For some, it may be downright scary.  In financial planning, the phrase “risk tolerance” is one of the many pieces of financial jargon that is often misunderstood.  Let’s shed some light on risk tolerance and why it’s important to know yours.