1. I plan to use the money I am investing:
a) Within 1-2 years
b) Within 3-5 years
c) In 6-10 years
d) No sooner than 11 years from now
2. I expect that my future income will:
b) Remain about the same or go up a bit
c) Increase faster than inflation
d) Increase rapidly
3. In the event of a job loss or medical or other emergency, I have:
a) No emergency savings
b) Some savings, but less than three months’ worth
c) At least three months' worth of savings
d) More than six months’ worth of savings
4. My most important investment goal is to:
a) Preserve the money I have
b) Receive some growth and some income
c) Grow my investments somewhat faster than the rate of inflation
d) Grow my investments much faster than the rate of inflation
5. Of my current investments, I have this much invested in stocks or stock mutual funds:
a) Less than 15%
d) More than 70%
6. When I invest my assets in stocks or stock mutual funds, I feel mostly:
7. Which would you rather have:
a) 100% chance of receiving $1,000
b) 50% chance of receiving $5,000
c) 25% chance of receiving $20,000
d) 5% chance of receiving $100,000
Give yourself one point for each “a” answer, two points for each “b” answer, three points for each “c” answer and four points for each “d” answer.
If you scored between 25 and 28 points, consider yourself an aggressive investor with a very high risk tolerance. An aggressive investor is someone who is willing to accept a high degree of investment risk in exchange for the chance to earn a dramatically higher rate of return.
If you scored 20-24 points, you have an above-average risk tolerance and could be considered a moderately aggressive investor, or one who is willing to accept a greater degree of risk for the chance to earn an above-average return.
If you scored 15-19 points, you are likely a moderate investor with an average tolerance for risk. This means you’re willing to accept some risk in exchange for a potentially higher rate of return.
If you scored 10-14 points, consider yourself a conservative investor with a below-average tolerance for risk. This indicates that you’re likely unwilling to accept a greater degree of risk in exchange for the chance to earn a higher rate of return.
If you scored less than 10 points, you may think of yourself as a very conservative investor. Chances are you cannot afford to lose any amount of your principal assets and/or you do not wish to take on much risk at all with your investments.