“Slow and Steady” or “Wild Market Ride”?

A Basic Measure of Your Risk Tolerance

Are you enticed by high-risk investments or are you a risk-averse investor? Most people fall somewhere in between these two extremes. To help you get a sense of your risk tolerance, circle the responses that best describe your immediate reaction to each of the following statements. Try not to overthink your answers.

Q	1	2	3
I may need my money in an emergency	Strongly Agree	Somewhat Agree	Disagree
I need to be able to access my money quickly	Strongly Agree	Somewhat Agree	Disagree
I need to receive income from my investments now	Strongly Agree	Somewhat Agree	Disagree
I worry about fluctuations in the market and my portfolio	Strongly Agree	Somewhat Agree	Disagree
I prefer government securities to high-quality corporate bonds	Strongly Agree	Somewhat Agree	Disagree
I may consider investing in stocks, but in blue chip companies	Strongly Agree	Somewhat Agree	Disagree
I plan to retire in…	5 Years	15 Years	25+ Years
I need to begin reaping investment returns within the next…	5 Years	15 Years	25+ Years

Scoring

Award yourself one point for each answer in Column 1; three points for each answer in Column 2; and five points for each answer in Column 3.

If you have:

8 – 17 points	You have a low risk tolerance
18 – 31 points	You have an average risk tolerance
32 – 40 points	You have a high risk tolerance

These results can help serve as a starting point for selecting investments that are appropriate for your level of risk tolerance.

Distributed by Financial Media Exchange.