Step 1

Welcome to your first step in finding the correct investment allocation. There are many different factors that play a part in deciding what choice is the best for you. In this section you will be asked a series of questions in order to determine your risk tolerance. Risk, in financial markets, is determined by a person's tolerance for fluctuations in asset value. The model used here is a combination of outside knowledge from leading financial service providers, but does not attempt to match every person's exact tolerance or circumstance. You will be given the opportunity to see the sources of the model after viewing your results.

To continue with this step, please read each question and reply based on how you feel about the possible results or how you have reacted historically to the situation.

1. Generally, I prefer investments with little or no fluctuation in value, and I'm willing to accept the lower return associated with these investments.







2. From August 31, 2000, through March 31, 2001, stocks lost more than 25%. If I owned a stock investment that fell more than 25% in 7 months, I would: (If you owned stocks during this period, select the answer that corresponds to your actual behavior.)

Sell a portion of the remaining investment.
Hold on to the investment and sell nothing.
Buy more of the investment.



3. During market declines, I tend to sell portions of my riskier assets and invest the money in safer assets.

Disagree
Somewhat agree
Agree
Strongly agree



4. The chart below shows the greatest 1-year loss and the highest 1-year gain on 3 different hypothetical investments of $10,000.* Given the potential gain or loss in any 1 year, I would invest my money in:


B (loss of $1,020, gain of $1,921)
C (loss of $3,639, gain of $4,229)
Chart of Asset Risk