Broker Check

Investment Personality Quiz

| August 13, 2018
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Do you know your investment “personality”? Here is a simple quiz that can help you identify whether you are aggressive, moderate, or conservative. The quiz consists of five questions. There is no right or wrong answer, so be as objective as you can! Each answer has its own respective point value. When you are through, total your points and check your score against the investment typeat the end of the quiz. 

1) What’s Your Age? Your age is one of the most important factors that will help determine how much risk you can afford to take. Circle your age group and write in the score that corresponds to your answer. 

                                                                                                                                     Your Score

 

Age Group        20-29        30-39      40-49       50-59       60-69      over 70      

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    Score                 6               5             4               3               2               1    

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2) What Are Your Time Constraints? Another important consideration is how much time you have available to reach your investment goals. For instance, the younger you are, the more time you have available to meet a retirement savings goal. How many years do you have to reach your financial goal? 

Years to

Financial

Goal                          5         10             15           20              25               over 30

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Score                       1           2               3             4                5                     6

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3) How Much Loss Can You Handle? Sure, some investments have the potential for high returns, but these types of investments are accompanied by greater amounts of risk. In the world of investing, what can go up, can certainly fall down. With this in mind, how much of a percentage loss do you think you can emotionally handle? 

Percentage Loss You

can Comfortably

Handle                 5%      10%         15%       20%        25%          over 30%

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Score                  1                        2              3              4              5                     6

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 4) How Much Can You Afford to Lose? Some people are more tolerant than others when it comes to major fluctuations in their investment portfolio value. Irrespective of the amount of risk you can handle emotionally, there is only so much loss you can withstand financially. How much do you think, realistically, you can “afford” to lose? 

 Percentage Loss You

can Financially

Handle                   5%           10%         15%        20%          25%         over 30%

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Score                      1                2                3              4                5                   6

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5) How Long Can You Keep Your Money Tied Up? There are many factors that can determine how flexible you can be in withdrawing cash from a particular investment or savings mechanism. Some investments (e.g., certificates of deposit or annuities) may impose penalties for early withdrawals. Generally, the more flexible you can be with your investments, the more risk your program can tolerate. 

Flexibility of

Withdrawal            High             Medium (1-2 years)             Low (3+ years)

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Score                        5                                3                                                1

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                                                                                                                                    Total

  

Scoring Your Investment Type  

    5-13 points   Conservative

  14-21 points   Moderate

  22-29 points   Aggressive

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