Risk Tolerance Reality Check
Twelve scenario questions reveal your true risk tolerance — scored as two separate numbers, risk capacity (what your life can handle) and risk willingness (what your nerves can handle) — then translated into a model portfolio mix.
Educational purposes only — not financial or investment advice. This tool models general concepts. Suggested allocations are model ranges, not recommendations for you personally. Consider talking with a qualified financial professional before making investment decisions.
Part 1 — Your capacity for risk
These five questions measure what your financial life can handle, regardless of how brave you feel.
Part 2 — Your willingness to take risk
These seven scenarios measure how you actually behave when money is on the line. Answer honestly — there are no "right" answers.
Assumptions behind this tool. Scores are simple averages of your answers (capacity: 5 questions; willingness: 7 questions; each answer 0–100). The profile blends both scores equally. Allocation ranges are generic model portfolios used widely in financial education; they ignore taxes, fees, specific funds, and your full financial picture. A 20% drop illustration is arithmetic only — real drawdowns vary. This is educational modeling, not professional financial or investment advice.
Go Deeper with the Book
The concepts behind this check — asset allocation, diversification, and staying the course — are covered step by step in Investing Made Simple by Kimani Upshur, M.Ed.