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| I want to get the highest possible rate of return on my portfolio over the long term, and realize that the total value of my investments on occasion may decline significantly. |
| My first goal is the long-term growth of my investments, but I'm willing to accept a lower return to have less risk of a major decline in the value of my investments. |
| I want my investments to produce a fairly steady stream of income and to grow without major declines in value. |
| My most important goal is to receive steady, consistent income from my investments, but I'd also like my money to keep ahead of inflation over the long term. |
| I am willing to accept lower returns to minimize the risk of losing any money. |
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| I have a thorough knowledge of the three major asset classes, and I am very experienced in investing. |
| I understand the different categories of investments, the different levels of risk and return associated with each type, and am experienced in investing. |
| I'm familiar with basic types of investments. |
| I know something about investments, but do not have an in-depth knowledge. |
| I'm starting to learn something about investing. |
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| I could tolerate a significant decline in the short-term value of my investments, in anticipation of a positive long-term return. |
| A large decline in the short-term value of my investments would not be upsetting, in anticipation of a positive long-term return. |
| A modest decline in the short-term value of my investments would not be upsetting, in anticipation of a positive long-term return. |
| Any drop in the value of my investments would make me uncomfortable, but I could tolerate a minor decline from time to time. |
| My primary concern is the security of my investment. |
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| Have accumulated significant investment assets (excluding my home). |
| Have saved a moderate amount and am continuing to save. |
| Have increased my income, but am primarily paying down debt. |
| Have saved a little bit, but need to borrow frequently. |
| Just starting out. |
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Portfolio Allocation by Asset Class |
Answer the investment questions as accurately as possible. Each answer has an assigned point value. The total points generated from all answers is used to determine the type of investment profile with the best match. Please note that this should be used only as a starting point for your investment strategy and allocation.
This calculator uses three basic asset classes to allocate a portfolio. They are "Cash Equivalent," "Fixed Income" and "Equities." The Cash Equivalent would be assets similar to cash in regards to risk and liquidity. This would include actual cash, FDIC insured CDs, mutual fund money market accounts and other similar investments. Fixed Income would involve assets that are primarily designed to produce long-term income but little to no growth. This asset class is limited to bonds, bond funds and other similar low volatility income producing assets. Equities refers to stocks and stock funds that may produce income but are largely invested for their growth prospects. This asset class usually includes both dividend paying and non-dividend paying stocks, even if the dividends produce a significant amount of income.
The suggested investor profile provides a guide to your allocation between "Cash Equivalent," "Fixed Income" and "Equities" investment classes.