QUIZ

What’s Your Investing Strategy?

Ask yourself these questions to help determine what kind of investor you are and translate that to building wealth.

There is no one-size-fits-all way to invest. If you’re new to investing or simply revisiting your strategy. this quiz may give you a place to start that best suits your style and goals.

1

ASSESS YOUR RISK TOLERANCE

How comfortable are you with the possibility of losing money in
pursuit of higher returns?

A

I am comfortable with a high level of risk in exchange for potentially higher returns.

A

I’m OK with some risk and have time to recoup losses if necessary.

A

I am risk-averse and want to protect my wealth.

2

IDENTIFY YOUR GOALS

What is your
primary motiva-
tion for investing?

A

Building wealth fast.

A

Diversifying my portfolio.

A

Supporting my approaching retirement.

3

GAUGE YOUR EXPERTISE

At this moment, how much do you know about investing?

A

I feel like a seasoned pro looking for the next big opportunity.

A

I’m confident in what I know, but my skills are about average.

A

I’d consider myself a novice.

4

CONSIDER YOUR TIME HORIZON

Based on your age and financial goals, are you a short-term or long-term investor?

A

Long-term. Time is money.

A

A bit of both. I have time, but I want to play the field.

A

Short-term. I plan to make a big purchase or retire very soon.

5

CHECK YOUR EMOTIONS

When the economy and markets are down, how do you typically react?

A

I’ll make quick adjustments to try and recoup lost gains.

A

Market volatility doesn’t really faze me-I’m in it for the long haul.

A

Bear markets are stressful, so I keep my money as safe as possible.

MOSTLY A'S: Aggressive

You’re seeking big gains and are willing to invest time and risk to get there. A hands-on strategy and a portfolio filled with mostly stocks (80% or more) may be a good fit for you. High-yield bonds and alternative asset classes may be in the mix, too. It’s also likely that you have time on your side to weather market volatility.

MOSTLY B'S: Moderate and Balanced

You’re a middle-of-the-road investor looking to build wealth with little drama. A moderate investing strategy, focused on 60% stocks and 40% bonds, with mutual funds and ETFs mixed in may be the sweet spot. You have some time to reach your goals, and you typically remain levelheaded when market changes happen.

MOSTLY C'S: Conservative

You’re fairly risk-averse and prioritize protecting your money. A conservative investing strategy translates to fixed-income instruments such as bonds and money market funds. Protecting your money is important to you, as you are close to retirement or still getting comfortable with market volatility: