If you scored between 20 and 30 points on the quiz, consider yourself as having some risk tolerance. In general, longer investment horizons allow you to accept a higher risk in exchange for a potential higher rate of return . Make realistic assumptions. Accurate assumptions will help you to achieve your financial goals. If that occurs, you'll find yourself having to take more risk later in life to catch up.
Accurate estimates are a cornerstone of asset allocation planning.
Your retirement fund size. Be careful not to underestimate how much you will need. Contributions to your retirement fund. Estimate as best as you can how much and how long and you can contribute to your fund. You'll also want to plan for increasing your contributions as your salary grows.