On your way home from work, do you drive in the slow lane or the fast lane? Each person has a different propensity for risk. When investing, this risk propensity may be used to help assess your asset allocation. The following questionnaire may help determine your risk tolerance.
Bank savings accounts and CDs are FDIC insured up to $250,000 per depositor per institution and generally provide a fixed rate of return. If you withdrawal your money early, you may be subject to penalties. Stocks, bonds, mutual funds, and variable annuity subaccounts will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their purchase price. The guarantees of an insurance company are dependent on the issuing company’s claims-paying ability. Asset allocation and dollar cost averaging are approaches to help manage investment risk. Asset allocation and dollar cost averaging do not guarantee against investment loss.
This is a hypothetical example used for illustrative purposes only. It is not intended to provide specific advice regarding risk tolerance. Contact a financial professional for more information regarding a risk-tolerance assessment.