What is my risk tolerance?

Risk tolerance is your willingness to live with the ups and downs of investing - a different question from how much investment risk your circumstances can absorb. These four questions measure willingness alone. Pair the result with our asset allocation calculator, which weighs it against your time horizon, reserves and income to arrive at a recommended mix.

Attitudes toward Risk

1. Your portfolio falls 25% over six months and markets broadly are down about the same. What do you do? ?

What you would actually do if your portfolio and the broader market fell about 25% over six months.

2. In a market decline you lived through as an investor - 2020, 2022 or another - what did you actually do? ?

What you actually did during a market decline you lived through, such as 2020 or 2022.

3. Which range of one-year outcomes would you be most comfortable holding? ?

The spread of possible one-year results you would be most comfortable holding.

4. How much do you agree? "I would rather my portfolio grow slowly and steadily than have a shot at higher returns with large swings along the way." ?

How strongly you agree that slow, steady growth is preferable to a shot at higher returns with bigger swings.

Enter your values and select Calculate.

Your profile and score summarize how you answered four questions about reacting to losses, tolerating a range of outcomes, and preferring steady growth over bumpier growth. There is no universally correct score here - the result describes your comfort with volatility, not a target you should aim for or a guarantee of how you'll actually behave when markets move.

Two questions tend to carry the most weight in shaping the result: how you say you'd respond to a 25% drop, and what you actually did the last time you lived through a real decline. If your answer to the second question differs a lot from the first, it's worth sitting with that gap - past behavior under real stress is often a better guide than a guess about future behavior.

This questionnaire doesn't know your time horizon, your income needs, how much you have saved, or what else you own outside this portfolio. Two people with the same risk tolerance score can reasonably hold very different portfolios once those factors are added in. Treat the profile as one input into an asset allocation decision, not the whole decision.

It's worth retaking this after a major life change - a new job, a large windfall, approaching retirement, or simply living through your first real downturn as an investor. Comparing this result against your actual portfolio allocation, or bringing it to an advisor, is a reasonable next step. Having a documented answer to 'how much risk can I actually stand' puts you ahead of most people, who never write it down at all.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.