How much risk is too much?

Want a quick insight into just how much of a risk-taker you are? Try this little self-test and see.

&l;T>I rarely worry about my investments. .

I enjoy visiting a casino and regard any losses as simply the cost of an evening’s entertainment.
I regularly buy lottery tickets.</.
When renewing a mortgage, I prefer to take a shorter term with a lower rate, rather than to lock in at a higher rate for five years.
When on the highway, I’ll exceed the speed limit if no police are around..
I’d rather take a one in ten chance to win $5,000 than a one in three chance to win $500. .
I enjoy playing games for money.
I delay planning holidays to the last minute in order to get discounts.
I usually arrive late for appointments.
I want to be rich and I’ll do whatever it takes to achieve that, within reason.

Score two points for every “Agree”, one point for each “Unsure” and no points for all “Disagree” responses. Here’s how to interpret the results.

  • 15-20 points – You like to live on the edge. You have a high tolerance for risk and should plan your mutual fund investments accordingly.
  • 8-14 points – You’ll accept a degree of risk, but it may make you somewhat uncomfortable and you don’t want to overdo it. A balanced fund portfolio looks appropriate.
  • 0-7 points – You’re very conservative by nature. Too much risk will give you bad dreams. Stick with funds at the lowest end of the risk scale.