What’s Your Risk Profile?

The Model

This questionnaire evaluates your risk tolerance across seven dimensions: time horizon, investment goals, reaction to losses, portfolio concentration, experience level, income needs, and self-assessed risk tolerance. Each answer is scored from 1 (most conservative) to 5 (most aggressive), and your average score determines your risk profile.

Scoring Method

• Each of the 7 questions has answers scored 1 through 5
• Your average score across all questions determines your profile
• 1.0 – 1.8: Conservative
• 1.9 – 2.5: Moderately Conservative
• 2.6 – 3.4: Moderate
• 3.5 – 4.2: Moderately Aggressive
• 4.3 – 5.0: Aggressive

Assumptions

• All seven factors are weighted equally, in practice, some may matter more to your specific situation
• The suggested allocations are general guidelines, not precise recommendations
• Risk tolerance is just one input, your full financial plan should also consider income, expenses, tax situation, and goals
• Risk tolerance can change over time with life events, market experience, and proximity to financial goals

Interpreting Your Results

• Your risk profile name (e.g., Moderate) reflects your overall comfort with investment risk
• The suggested allocation shows a general portfolio mix of stocks, bonds, short-term instruments, and alternatives
• Higher stock allocations offer more growth potential but come with greater short-term volatility
• The average score shown helps you understand where you fall within your profile range

Tips for Using This Tool

• Answer based on how you would actually behave, not how you think you should behave
• If you are unsure, consider how you felt during past market downturns
• Take the assessment again periodically, your risk tolerance may evolve over time
• Use this as a starting point for a deeper conversation with an advisor about your investment strategy
• A qualified advisor can assess additional factors like tax efficiency, estate planning, and liability management