How to find out what is your investment risk tolerance level?

Many people have a mental block when it comes to investments. To the neophyte, the investment world often seems something bad, full of pitfalls for the uninitiated. This need not be the case, for the basic of investing can be learned by anyone.

Investment means managing your resources so that you can preserve your money's buying power, generate more money and obtain income. Once you decide to put money to work by investing, you will need a procedure for making sense of the multitude of financial options available to you.

You can begin by clarifying what your investment goals are. May be asked yourself the following :-

1. where am I now financially?
2. Where do I want to be in five years?
3. Ten years?
4. Twenty years time?

You will have to take a financial inventory to assess where you are now. Ideally, this should be done when you are not under pressure.

Once you have carefully made this inventory, taking into account your liquid assets, fixed assets and various obligations, you should be ready to identify where you want to be at the end of the specific period. Bearing in mind that your goals will vary at different times in your life. For example, if you were to marry or to receive an inheritance your financial plan would change.

Whatever it is, to help you have a feel of what is your risk tolerance level, you may want to try this online Risk Profiler - courtesy of NTUC INCOME.

Hope you find this online Risk Profiler useful.