Take the Risk Tolerance Quiz
The first step toward implementing a strategy is taking the Zero Commission Portfolios Risk Tolerance Quiz developed by professors Dr. Ruth Lytton at Virginia Tech University and Dr. John Grable at Kansas State University. You will be asked 13 multiple-choice questions that can be completed in less than five minutes. The completed quiz will then generate an overview of your risk personality along with a recommendation of the appropriate Zero Commission Portfolios investment portfolio model.
Why is this important? Successful investing isn’t just about strategy. You need a sense of how strong your stomach is. How much can you watch the market fall before you panic and sell? Unfortunately, most investors determine their risk tolerance by their time horizon. In other words, they determine how much risk to take based on their age or at best the number of years before they begin making withdrawals.
But that’s only half the story. What’s your risk personality? Some people love the thrill of the high wire, while others prefer to walk through life comfortably on solid ground. Grable has concluded these traits impact how you should invest. Risk Tolerance = Time Horizon + Risk Personality