What type of investor are you?

To determine the type of investor you are, you first need to gauge your risk tolerance. Then you can focus on your investment strategy.

Risk tolerance

Which of these descriptions best represents your comfort with risk?

If you think …

  • Big fluctuations in the market are bad, no matter how long your investment time horizon.
  • Bonds and short-term investments may be better for you than stocks because they are typically less volatile.

Then your risk tolerance is probably …

One or two on a scale of one to five

Conservative

If you think …

  • Some market fluctuations are tolerable—but not too many.
  • A mix of stocks and bonds could be the way to go, because you plan on being invested for at least 5 years.

Then your risk tolerance is probably …

Three on a scale of one to five

Moderate

If you think …

  • Market fluctuations are not a big deal.
  • The potential for higher returns outweighs the risk of losing money.
  • A portfolio that holds more stocks than bonds is okay.

Then your risk tolerance is probably …

Four or five on a scale of one to five

Aggressive

Investment strategy

To determine the investment approach you should take, decide which of these quotes sounds more like you.

"Managing my investments is too complicated. I would like some help."

Age-based options could be the right approach for you.

You pick one of the 4 age-based savings tracks depending on your risk comfort level. Then, as your student approaches college age, we will automatically shift your savings to more conservative portfolios. Of course, you should periodically review your investments in case your risk tolerance or personal situation changes.

"I like to choose my investments and control how they are managed."

Individual portfolios could be the right approach for you.

This is a do-it-yourself strategy. You can choose from our lineup of 10 individual portfolios. You then manage that mix based on the strategy that you put together.

If you need guidance in determining the right asset mix for your investments, we have a tool to help.