Yikes!! If you’re like the typical investor, recent market swings struck cold fear deep into the recesses of your mind. Okay, dramatic. But the combination of the unknown, your life savings, and the recession of 2008 still looming in our distant memory, market volatility probably kept you up wondering a night or two…
Sometimes, it’s hard to stay focused when the markets get choppy. And there’s the whole being human thing – I think we can all remember a few decisions that probably weren’t the wisest made for emotional reasons. We don’t want that to be the case with your finances! Take this short quiz to uncover your feelings about investments
- When do you plan to stop working?
- 40 years
- 20 years
- 10 or less years
- When the stock market drops 10% or more, what’s your reaction?
- I pay no attention
- I become concerned, but stay invested
- I freak out and start pulling my money
- How often do you check your retirement account balance?
- Once a year
- Three or four times a year
- Which statement captures your feelings about losing money in the short-run?
- Markets go up and down every day – if I stay in it for the long-haul, I’ll probably come out on top
- I check to see if my asset allocation is significantly out of balance, but generally don’t do much, if anything about it. Markets eventually recover
- I feel sick. I want to sell everything.
- What’s the most important factor when you think about risk & reward in retirement planning?
- It’s time in the market, not timing the market, that counts
- I accept risk as a normal part of investing. Without some level of risk, there is no reward
- The risk of losing money in the markets makes my stomach turn and I can’t stand it
Scores – A answers = 20 points, B answers = 15 points, C answers = 5 points
80 points and above – You are comfortable with maintaining your long term investment strategy even through volatile markets
40-79 points – the risk of loss is somewhat concerning to you, whether that’s because you are getting closer to retirement age or you just feel anxious when markets take a turn. Consider working with an advisor to ensure your asset allocation aligns with your risk tolerance
20-39 points – the risk of losing money weighs heavily on you. Spend some time understanding the markets and historical performance. Consider working with an advisor who is sensitive to your feelings, can suggest investments vehicles that seek to limit losses, and can talk you off the ledge and back on course when market volatility hits
The scores are based on generally accepted investment principles and are not intended as investment advice or recommendations. There is no guarantee that a particular investment strategy or asset allocation will meet your objective. Additional factors should be considered as part of a comprehensive review of your individual financial situation.
Portions of this material were prepared by Kmotion, Inc. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own, separate from this educational material. © 2018 Kmotion, Inc.