Your Risk Profile: Total Points:______
(11 to 21 Points) Conservative:
Conservative investors tend to prefer current income and stability. They are most concerned
with capital preservation and hold larger positions in fixed income investments and cash
(22 to 29 Points) Moderately Conservative:
Moderately conservative investors prefer current income and relative stability. They want
access to some investments with an opportunity to increase in value.
(30 to 39 Points) Moderate:
Moderate investors tend to seek solid growth with relative stability. They are willing to take
some risk and feel more comfortable in a balanced portfolio with a mix of stocks and bonds.
(40 to 47 Points) Moderately Aggressive:
Moderately aggressive investors tend to hold larger positions in established large-cap and
international equity companies with slightly less exposure to market volatility and other risks
compared to aggressive investors.
(48 to 54 Points) Aggressive:
Aggressive investors tend to hold the largest percentage of positions in stocks (i.e., large-
cap, small-cap, and international) that seek to potentially generate higher returns.
Aggressive portfolio strategies in general can expose investors to a higher degree of market
volatility (including loss of principal) along with other types of increased risks.
3. Review sample asset allocation models.
Now that you know your time horizon and risk profile, you can make some asset allocation
choices. The chart below provides sample allocations based on these factors. Remember, these
guidelines are for illustrative purposes only and should serve merely as a starting point for your
decisions. Don’t forget that some goals have multiple time horizons. If you are planning to retire
in the next 5 years, it can actually be a long-term goal if you plan to be in retirement for 20
Risk Category Sample Asset Allocation Models
Conservative 20-30% Stocks, 55-65% Fixed Income, 15-25% Cash
Moderately Conservative 30-40% Stocks, 50-60% Fixed Income, 10-15% Cash
Moderate 50-60% Stocks, 35-45% Fixed Income, 5-10% Cash
Moderately Aggressive 60-70% Stocks, 15-25% Fixed Income, 5-10% Cash
Aggressive 80-90% Stocks, 5-15% Fixed Income, 5% Cash
4. Balance risks, time frames and investments.
Only you can decide the appropriate investment mix that is right for you. By understanding
these three components you will be better prepared to make investment decisions. The final
decision is always yours!
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