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.