For many investors, determining risk tolerance levels is one of the most difficult tasks when creating a financial plan. To help you get a handle on this, read the following statements and decide which ones best fit your personality. One can't be too careful. When in doubt, err on the side of caution. Nothing ventured, nothing gained.
Diversification is very important.
Emphasize your strengths. Put most of your money into your best investment ideas. The future will take care of itself. Each of these statement groups started with the most conservative thoughts first and the most aggressive last. If you found yourself agreeing with the first statements, you are a conservative investor.