Why take this test
Most people lose money not because of bad stocks but because they take more risk than they can bear and sell at the bottom. The test helps you pick an asset mix you can sit through to the end.
What your risk is made of
- Ability to take risk — your horizon, cash cushion and income stability. If you need the money in two years, high risk is not for you, however calm you are about falls.
- Willingness to take risk — how you behave when the account is down by a third.
The test takes the lower of the two. That is why a short horizon or no cushion lowers the profile even if the other answers are bold.
The test is simplified and does not replace personal advice. Educational purposes only, not investment advice.