Learning To Invest Summary These scenarios help you identify your risk level. The analysis is by no way exact, but only intended to point you in the right general direction. Please also use our risk line.
Risk Evaluation
This tool is a good starting point in finding an appropriate portfolio. Try to honestly identify with one investor for each scenario. After deciding upon an investor click the analysis link to learn what your choice indicates about your risk level. Our scenarios attempts to asses your risk tolerance by uncovering the way you view your investments, and your portfolio's performance. People judge this performance differently, and this affects their ability to withstand risk. For example, suppose person A examines their portfolio on a stock by stock basis, whereas B looks at the portfolio as a whole. Obviously A will see a large degree of volatility in the individual stocks, while B will see a more smoothed average of all the stocks. Thus, B is likely to withstand more risk before selling out than A. Through a series of questions we can ascertain how you view your portfolio, and thus how much risk you can sustain. Methodology behind us, lets take a look at some scenarios, and why they are significant.

Scenario 1-Time Frame (Pick the Investor Which Best Fits You)

  1. The Short Term Investor: Will need the investment money within a year.
  2. The Short/Mid Term Investor: Will need the investment money in 1 to 5 years.
  3. The Mid Term Investor: Will need the investment money in 5 to 7 years.
  4. The Mid/Long Term Investor: Will need the investment money in 7 to 10 years.
  5. The Long Term Investor: Will need the investment money after 10+ years.
[Analysis...]

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