The point of determining your risk profile is using it to determine a mix of assets that suits you.

There are various helpful methods that are available.

Age - A well-known rule of thumb used by some is that your age equals the percentage of your total holdings that should be in bonds. So if you are 40 then you have 40% in bonds and 60% of your portfolio in stocks.

Questionnaires - These ask questions such as: when do you need the money? How would feel if the investments fluctuated by 20%? Would you be able to sleep at night? Are you willing to accept risk for the potential of higher returns? Or do you prefer steady growth? Then these questionnaires help narrow down a mix of stocks and bonds for you.

I think questionnaires are superior and there are many available, especially online.


Marion R. Syversen, MBA - President
NorumbegaFinancial
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Marion@NorumbegaFinancial.com
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