How Much Risk Can You Tolerate?

How comfortable are you with investment risk? For each set of statements, consider which one sounds more like you — the one on the left or the one on the right. Select the button that best indicates where you fall between the two statements.

Personal Risk Profile

My primary goal is to protect my retirement savings. I am most concerned about not losing what I have and I am not willing to accept any market risk, even to keep up with inflation.		My primary goal is to maximize my retirement income. I am willing to take on sufficient investment risk to do so.
I would worry over short-term investment declines, even if I didn’t need my retirement savings for 20 years.		I wouldn’t worry about short-term investment declines, because I expect there to be growth potential in five- or 10-year holding periods.
If the stock market dropped dramatically tomorrow, I’d probably take my losses and pull my savings out of stocks to keep from losing more money.		If the stock market dropped dramatically tomorrow, I’d probably put more of my money into the market, to catch it before it moves back up.
I would be upset if my quarterly financial report showed a loss.		A loss on my quarterly financial report wouldn’t bother me, as long as I had plenty of time until I needed my savings.
I would prefer a conservative investment that kept me from losing money in a market downturn to a riskier investment with higher returns.		I would prefer an aggressive investment with the potential to earn a lot of money over a 10-year or more period to an investment offering more stability.
I wouldn’t invest in a start-up company, even one with a promising idea. The risk of losing my entire investment is just too great.		I’d invest in a start-up company if it had a promising idea. I’m willing to take some chances to earn a good return.
Total:
View the portfolio that matches your risk profile.

Assessing Your Risk Profile

Conservative If your total equals 11 or less, you’re at this end of the risk spectrum with a low risk tolerance. Your Portfolio

Moderate If your total falls between 12 and 23, you’re in the middle of the risk spectrum. Your Portfolio

Aggressive If your total is 24 or greater, you’re at the aggressive end of the risk spectrum with a high risk tolerance. Your Portfolio