Get a Personal Risk Assessment
Knowing your risk tolerance can help you make investment decisions.
What Is Risk Tolerance?
Risk tolerance refers to how much risk you are willing to take with your investments. All investments have risks, so knowing your comfort level can help you pick investments wisely for your financial goals.
Investments that have more risk, such as stocks, can come with potentially more gains, but also more losses. At the end of the day, investing can be a balancing act between risk and rewards.
Time Matters for Taking Risks
An important element for your risk comfort level is how much time until you’ll need the money. Generally, the longer you have to invest, the more risk you can take because you have time to recover from losses.
Know Your Risk Tolerance
A risk assessment can help you get a good idea about how much risk you should have in your portfolio. It starts with understanding what kind of risk taker you are—from very conservative to very aggressive. And it can help you choose different investment types and how much of each to allocate in your portfolio (your asset allocation).
Choosing appropriate assets according to your risk tolerance can help you maintain your investment strategy and stick with your plan, even in turbulent market times.
These have nothing to do with your personality and everything to do with how much risk you are comfortable taking.
Ready to Get Started?
Know how much investment risk you want to take by answering a few key questions about your comfort level and timeline. Based on your answers, you’ll receive a risk analysis that can help you choose your investments.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.