***I am a married, a mom of four and my husband and i invest in the stock market we are high risk investors i plan to retire in 25-30 year. I am 30 years old now…
any questions pleas ask me
Based upon your risk tolerance, determine the asset allocation that you will use for two different goals. You will be taking each quiz TWICE – once for a 10 year, $10,000 savings goal and once for a long-term retirement goal!
Risk Tolerance – Risk Preferences: Ultimately, this is an individual decision. Write a detailed description of how you intuitively feel about investment risk. Here you should consult a risk tolerance survey available at any of the major mutual fund group websites. (I recommend using Vanguard). Think about your investment horizon when making this evaluation. For example, with a 20-year investment horizon, you should be much more willing to tolerate short-term market risk than with a 1-year investment horizon. Also, include the impact of international investments on the expected volatility of your retirement portfolio.
First, determine your asset allocation that you will use for your retirement investments. Second, determine the asset allocation that you would use for a goal that is about 10 years in the future, such as a down payment on a vacation home or a college education for your children. Assume a goal of having $10,000 in ten years. Use the Simple Asset Allocation Tool (Links to an external site.) as well as a more complex Funds Investment Questionnaire. (Links to an external site.) When completing the questionnaire you can input that you have zero current investments. It is best to start over and complete the questionnaire a second time for your second goal. You can also evaluate your risk tolerance. (Links to an external site.)
Write a short description of your asset allocation.