Samurai Equity Exposure Rule - Risk Tolerance Multiple

The FSC or formula is basically this, risk tolerance multiple equals your equity exposure times 35% because 35% is the average bear market drawdown divided by your monthly gross income. So for example, let's see you have $1 million in equities with a $10,000 monthly gross income, so 120,000 a year. Are you really willing to spend 36 months or three years of your life making up for your losses, your potential losses? If so, you've got extreme risk tolerance. And that 36 multiple identified as extreme risk tolerance is my opinion. The maximum recommended equity Exposure based on your perceived risk tolerance is $3.428 million based on a $10,.000