In my post on Wednesday, I talked about the risk involved in investing and that we needed to use a methodology to measure our personal tolerance for risk. So here is a quiz I created to help get a sense of where you stand on the investor risk tolerance spectrum
If you feel comfortable sharing your risk tolerance level in the comments below, please do! I’d love to know!
For me, I am a long term investor and I have a high risk tolerance level so I have built my portfolio to reflect a more aggressive style of investing by including a large number of equities, fewer ETFs/mutual funds and very few CD’s/Bonds. Why am I willing to take these risks now? Because I have time to contribute to my investment portfolios over the next 30 to 35 years before retirement. Compare that to my parents, who have portfolios of their own, they have a more conservative way of investing. Their portfolios have higher concentrations in the CD’s, ETFs and mutual funds than I do.
Now that you know what your risk tolerance is, what should you invest in? We’ll talk all about it next week. Don’t forget to comment what you think a good hashtag will be for my Thursday Company Review blog posts. Still accepting suggestions.
HAVE A GREAT WEEKEND!