Asset Allocation Risk Level Questioner

[street]

Asset Allocation Risk Level Questionnaire

I was wondering if there is a questionnaire that would help to decide a personal risk level for investing for people. I would be looking for a generic form that I could pass on to an individual that isn't sure where he wants to be. It would be a break down of high risk, low risk etc. and maybe give a % of equities or bonds with a risk factor result.

Thanks

 

[fidler4]

Are you looking for something like this from Vanguard? It’s their Investor Questionnaire.

http://www.vanguard.com/pdf/wiquestion.pdf

 

[street]

^ thanks. I am a member of an outdoor site and there is a young man there that has been looking for some advise on stock market and a path to retirement. I did give him the Vanguard site he may have found this also.

A lot of book of books to read etc. but it is nice to be able to talk to someone and Vanguard would have that for him also.

 

[OldShooter]

I'd point your friend to Bill Bernstein's "If You Can." 16 pages of wisdom for young people and a good suggested reading list. https://www.etf.com/docs/IfYouCan.pdf

Re risk, I don't think we can know our risk tolerance until it is tested. Life is like school except that first you get the test and then you get the lesson.

From Fred Schwed:

"Like all of life's rich emotional experiences, the full flavor of losing important money cannot be conveyed through literature. Art cannot convey to an inexperienced girl what it is truly like to be a wife and mother. There are certain things that cannot be adequately explained to a virgin either by words or pictures."

 

[HadEnuff]

I'd point your friend to Bill Bernstein's "If You Can." 16 pages of wisdom for young people and a good suggested reading list. https://www.etf.com/docs/IfYouCan.pdf

Re risk, I don't think we can know our risk tolerance until it is tested. Life is like school except that first you get the test and then you get the lesson.

From Fred Schwed:

"Like all of life's rich emotional experiences, the full flavor of losing important money cannot be conveyed through literature. Art cannot convey to an inexperienced girl what it is truly like to be a wife and mother. There are certain things that cannot be adequately explained to a virgin either by words or pictures."

Well put.

 

[HadEnuff]

The recent drop, and subsequent rise of the equities market gave me pause to rethink my AA.

Basically I took pencil to paper and tried to figure out what happens "if"....the market goes up, down, sideways, interest rates go up, down, sideways,, inflation goes up, down sideways, etc etc, and given the size of my nut and my age etc, with the input of some of the retirement calculators, and...
I changed my AA a bit. I nudged it down in equities and up in cash. So far, it's helped me with my sleep. It turned out that, once again, my risk tolerance was lower than I thought.

Maybe that makes sense, as I get older, I needn't take as much risk.

 

[street]

I'd point your friend to Bill Bernstein's "If You Can." 16 pages of wisdom for young people and a good suggested reading list. https://www.etf.com/docs/IfYouCan.pdf

Re risk, I don't think we can know our risk tolerance until it is tested. Life is like school except that first you get the test and then you get the lesson.

From Fred Schwed:

"Like all of life's rich emotional experiences, the full flavor of losing important money cannot be conveyed through literature. Art cannot convey to an inexperienced girl what it is truly like to be a wife and mother. There are certain things that cannot be adequately explained to a virgin either by words or pictures."

Excellent! This will be passed on to him. Thanks

 

[easysurfer]

Don't forget to ask him how well he'll sleep at night after he does the questionnaire. The true test of comfort level .

 

[joeea]

I was wondering if there is a questionnaire that would help to decide a personal risk level for investing for people. I would be looking for a generic form that I could pass on to an individual that isn't sure where he wants to be. It would be a break down of high risk, low risk etc. and maybe give a % of equities or bonds with a risk factor result.

Try this one: https://gps.ricedelman.com/