Risk Analysis
Out on the highway, do you drive in the slow lane or the fast lane? Do you slow down or speed up when you see a yellow light ahead? Everyone has a different attitude toward risk and risk-taking. This is as true of our financial lives and choices as it is in other life situations. When investing, knowing your personal risk tolerance is a first step in determining the percentage of your portfolio that you will be comfortable exposing to the ups and downs (risks) of equities. That is, of the stock market.
The process of Risk Analysis starts with getting a Risk Tolerance score. Your score - the measure of your own attitude toward and ability to tolerate financial risk, is determined by your answers to a short list of questions. Calculate your Risk Tolerance score, now.
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Calculator:
What is my risk tolerance? (get your number then take the Free Portfolio Risk Analysis test below)