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Risk Tolerance Modeler
 

Investment risk tolerance is your willingness to accept greater investment risk in exchange for higher potential investment return. Historically, investments with higher investment risk have tended to go up and down in value, sometimes by large amounts. However, they have also tended to increase in value more than lower-risk investments, especially over the long run.

This two-step tool helps you measure your willingness to accept greater investment risk for greater growth opportunities. Determining your risk tolerance will help you select the MMBB investment options that may best meet your needs at this time.


Step 1:

Listed below are five risk tolerance statements. Please indicate to what level you agree or disagree with each statement.

  Strongly Disagree Disagree Neutral Agree Strongly Agree
I’m willing to assume greater potential investment risk in return for higher potential growth in the value of my investments.
I have seven or more years before I will retire or withdraw money.
A loss is only on paper unless I sell my investment, so I’m willing to tolerate ups and downs in the value of my investments.
I prefer investments that are likely to keep pace with or even beat inflation over the long run.
I have substantial, low-risk investments outside the MMBB retirement plans (a paid-for home, Certificates of Deposit or savings bonds, money market funds), so I can assume more investment risk with my plan money.


Step 2:

Now, for each row below, please indicate which risk tolerance characteristic is more important to you.

  Less Important   Equally Important   Most Important  
Avoiding declines in the value of my account. Having more money in my account when I need it.
Short-term access to my money. Holding onto my investment long enough to help ride out the ups and downs in value.
Avoiding fluctuations (ups and downs) in the value of my account. Growing my account as much as possible with appropriate risk for a retirement plan.
Stable values in my account. Preserving the buying power of my money (meeting or beating inflation).