Investment Risk Tolerance Quiz
Questions: 15 · 10 minutes
1. How dependent are your essential obligations over the next few years on money currently exposed to investment losses?
A small portion depends on it, but alternatives are available
Most or all of those obligations depend on it
None of those obligations depend on it
A substantial portion depends on it
2. Your income stops for three months just as your investments decline. Which statement best describes the likely impact?
I could avoid investment withdrawals, but my reserve would become noticeably thinner
I would need to withdraw invested money almost immediately
I could meet obligations without drawing from the declining investments or straining reserves
I could manage briefly, then would probably need investment withdrawals
3. A market decline occurs shortly before you had planned a large withdrawal. What options would you realistically have?
Withdraw the full amount on schedule despite the decline
Reduce the withdrawal slightly, but still take most of it
Postpone part of the withdrawal or cover part from another source
Postpone the withdrawal or meet it elsewhere without selling the declined investments
4. When choosing investments, how do possible short-term declines affect you?
I can accept substantial short-term declines in pursuit of long-term growth
I prefer investments whose value is unlikely to move noticeably
I accept small fluctuations but become uncomfortable when losses grow
I can tolerate moderate fluctuations if the long-term case remains intact
5. Over the next five years, what level of withdrawals do you expect from these investments?
Regular withdrawals for essential spending
One or more substantial withdrawals for planned commitments
Only optional or relatively small withdrawals are likely
No withdrawals are currently anticipated
6. Suppose an essential, unexpected expense equal to one month of your usual spending arose. How would you most likely cover it?
Mostly by borrowing or selling investments needed for other goals
By using nearly all of my readily available reserve
From available savings while retaining a meaningful reserve
From available cash with little effect on my wider financial plans
7. How flexible is the date of the main goal connected to this money?
The date is fixed, but I have limited alternatives if the amount falls short
The date is highly flexible or there is no defined withdrawal date
The date is fixed and the full amount will be needed then
I could delay the goal or adjust its cost meaningfully
8. If part of your portfolio permanently lost 25% of its value, what would the practical consequence most likely be?
I would reduce discretionary goals or spending, but essentials would remain covered
It would have little effect on planned spending or obligations, although it would be disappointing
I would struggle to meet essential expenses or required payments
I would need to postpone or significantly scale back an important commitment
9. If a major life change created an unexpected need for money, how dependent would you be on these investments?
They would probably be my main source of funds
I would likely need to withdraw a substantial portion
I could use other resources but might still withdraw a smaller portion
Other resources would likely allow the investments to remain untouched
10. When are you most likely to need a substantial portion of the money you are considering investing?
Within the next two years
In about two to four years
In about five to nine years
In ten years or more
11. A diversified long-term investment account falls 15% in one month, but your goal and timeline have not changed. What would you be most inclined to do?
Sell most of it promptly to prevent the possibility of a larger decline
Wait briefly, but reduce the risk if prices continue falling
Keep it invested while considering whether a modest reduction would help me stay comfortable
Leave it invested because this degree of fluctuation fits what I had accepted
12. News headlines predict a difficult year for markets. Your own circumstances have not changed. Which reaction sounds most like you?
I would check my plan and probably hold, although the news would concern me
I would move toward more stable assets before the forecast could come true
I would regard the forecast as uncertain and feel little urge to change my holdings
I would reduce some exposure while keeping part of my original position
13. For money assigned to a distant goal, which pattern of returns would feel most acceptable?
Mostly stable value, even if long-term growth potential is limited
Small ups and downs with relatively modest growth potential
Noticeable gains and losses with moderate growth potential
Large gains and losses with greater growth potential but no guarantee of reward
14. After essential expenses and required debt payments, how would you describe your usual financial margin?
A substantial and fairly reliable surplus remains
Little or no reliable surplus remains
A modest surplus remains, though it varies
A meaningful surplus usually remains, with occasional tighter periods
15. What temporary decline in a long-term account would most likely make you feel compelled to sell at least part of it?
A decline of more than 20%
A decline of about 5% to 10%
A decline of less than 5%
A decline of about 11% to 20%