Your Risk Profile Is:
Your quiz answers helped estimate your time horizon and risk tolerance, which were then mapped on the chart below. The intersection of the two values correspond to an estimate of your risk profile.
Selecting An Investment Strategy
These investment strategies can be used as a general guide and show how investors might allocate their money among various asset categories. Please note that these examples are generic, a higher-level view of the two main asset types, stocks and bonds. Stocks, for example, can be further granulated into growth, value, large-cap, small-cap, domestic, international, and so on. Low-cost, broadly diversified index funds can help you achieve a well-rounded asset allocation. If you are not comfortable making these decisions on your own, seek the advice of an independent, fiduciary investment advisor, who can help match you to a detailed asset allocation appropriate for your risk profile. Please also note that cash is not represented here. In my view, you should first save enough cash to cover shorter-term expenses. Investments help you reach your retirement and other long-term financial goals.
Keep in mind that it’s also important to periodically review your investment strategy to make sure it continues to be consistent with your goals. If one of the investment strategies below matches your Risk Profile, you can use this information to help you create a more detailed investment plan.
Conservative
allocation
For investors who seek current income and stability and are less concerned about growth.
Moderately
conservative
For investors who seek current income and stability, with modest potential for increase in the value of their investments.
Moderate
allocation
For long-term investors who don’t need current income and want some growth potential. Likely to entail some fluctuations in value, but presents less volatility than the overall equity market.
Moderately
aggressive
For long-term investors who want good growth potential and don’t need current income. Entails a fair amount of volatility, but not as much as a portfolio invested exclusively in equities.
Aggressive
allocation
For long-term investors who want high growth potential and don’t need current income. May entail substantial year-to-year volatility in value in exchange for potentially high long-term returns.
