Investment and Saving

What's Your Risk Factor?

By Candace Bahr, CEA, CDFA and Ginita Wall, CPA, CFP

To help you figure out your relationship to risk, we've created a short quiz. Take a few moments to complete it, choosing the answer that best describes you.

The results should give you a good idea of how much comfortable you are (or aren't) with taking risks.

When taking this quiz:

• Answer all questions (guess if you're not sure)
• Only check ONE box for each question

1.	My primary goal is to:

	Protect my savings. I'm most concerned about preserving what I have.
	At least keep up with inflation.
	Take some investment risk to get a good return.

2.	If the stock market dropped 10 percent tomorrow, I would:

	Sell everything. I can't afford to lose it all.
	Bide my time and see what happens.
	Put more money in. Aren't you supposed to "buy low, sell high"?

3.	If I had a choice between $1,000 cash and a 1 in 10 chance for $10,000, I would:

	Take the money and run.
	Consider my current financial situation. If I desperately needed the money, I'd take the cash.
	Take a chance. Sometimes you win, sometimes you lose.

4.	Would you invest in a start-up company?

	Only if the founder was Bill Gates.
	Yes, if I had extra cash to spare and the company had a good business plan.
	Of course -- I'm always looking for new opportunities.

5.	Short-term losses in my retirement account make me feel:

	Extremely worried. I just can't sleep at night when I know that I'm losing money.
	A bit concerned. But I know that I have a long time ahead to make up the difference
	Committed to my investment plan. I know the market will go up over the long haul.

6.	Do you like surprises?

	No, not even when I was a child.
	Only on my birthday.
	Half the fun in life is seeing what happens next.

7.	When I make a bad investment:

	I brood about it for months, sometimes years afterwards.
	I try, sometimes successfully, to let it go.
	I focus on my next venture.

8.	In my daily life:

	I like predictability and routine.
	I try to do things differently every once in a while.
	I can't stand to do the same thing twice.

9.	I am like the:

	Chicken -- afraid to venture out.
	Golden retriever -- even-tempered and easygoing.
	Cheetah -- fast, solitary, and carnivorous.

10.	My outlook on the future is:

	Pessimistic -- things always seem to get worse and worse.
	Half-empty and half-full -- sometimes things work out, sometimes they don't.
	Optimistic -- things always end up for the best.

 

At WIFE we welcome your comments. Please feel free to contact us

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