Investment risk Assessment Tool
Answer four questions to see your investor risk profile and an example stock, bond and cash mix.
Investment risk Assessment Tool
Answer the questions below to discover your investor risk profile.
Four questions score your time horizon, reaction to a 20% loss, main goal and how much of your savings you are investing. A score of 10 to 12 gives a Growth profile, which this tool illustrates as roughly 80% stocks, 18% bonds and 2% cash. The default answers score 10 (Growth).
How to use this investor risk tolerance quiz
- Choose your investment time horizon.
- Say how you would react if your portfolio dropped 20%.
- Pick your main goal and the share of your savings you are investing.
- Click Get My Risk Profile for your profile and a sample allocation.
The math behind the result
Each answer scores 1 to 4 (the goal question 1 to 3). The total decides the profile:
- 4 to 6: Conservative, about 30% stocks, 50% bonds, 20% cash
- 7 to 9: Moderate, about 60% stocks, 35% bonds, 5% cash
- 10 to 12: Growth, about 80% stocks, 18% bonds, 2% cash
- 13 and above: Aggressive Growth, about 95% stocks, 5% bonds
Worked example
Defaults: 5 to 10 years (3) + hold steady in a 20% drop (3) + moderate growth (2) + investing 10% to 30% of savings (2):
- Score: 10
- Profile: Growth, sample mix 80 / 18 / 2
Risk tolerance vs risk capacity
Tolerance is how much volatility you can stomach. Capacity is how much loss you can afford: your income, savings, debts and how soon you need the money. Your plan should respect the lower of the two.
Time horizon matters most
Money needed within a few years generally belongs in safer assets, because stocks can fall sharply in the short run. Money you will not touch for ten years or more can usually take more risk.
This is an educational guide
The allocations are simple illustrations, not personalized advice. Your situation may call for something different; consider speaking with a licensed financial professional. Investor.gov explains risk tolerance and asset allocation in detail.
Key terms
- Risk tolerance
- How much investment volatility you are comfortable with.
- Time horizon
- How long until you need the money.
- Asset allocation
- How your money is divided between stocks, bonds and cash.
Frequently asked questions
What is risk tolerance?
It is the amount of ups and downs in your investments that you can accept without panicking or changing your plan.
What is a good stock and bond mix?
It depends on your age, goals and comfort with risk. A common rule of thumb is more stocks for long horizons and more bonds as you near a goal, but there is no one right mix.
Does a higher score mean I should take more risk?
No. It describes your answers today. Your capacity to take losses matters too.
Is this financial advice?
No. It is an educational tool. Speak with a licensed advisor for personal advice.
Sources and further reading
Related calculators
Related guides
Figures in the examples are illustrative and use the inputs shown. Market rates and program rules change; confirm current terms with your lender or the linked official sources before making a decision.
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Built by Abdul Rahman · Last reviewed: · Report an error
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Results depend on the figures you enter and on simplified assumptions; actual rates, taxes, and outcomes will differ. Consult a qualified professional before making financial decisions.