What’s Your Investment Personality?

Are you Cautious Clay? Or are you more of a Risky Ricardo?
These characters can help describe one of the key factors that determine the most appropriate ways for you to save and invest: your Investment Personality.

Your personality plays an important role in shaping nearly everything about your life, from the type of job you have to the style of clothes you like. In the same way, your Investment Personality should shape virtually every aspect of your investing strategy -- from the types of investments you choose to how you allocate your money among different investments and even the length of time you plan on investing.

To see what your Investment Personality looks like, answer the questions below. The number after each response indicates your score for that question; total your score for each segment to get a reading for different aspects of your personality. The results may surprise you.

What Are Your Investment Objectives?

Which one of the following best describes your investment objectives?

* I depend on the return from my investments to supplement my current income. (1 point)

* I don’t need current income, but I feel better receiving some income from my investments. (3 points)

* I am not concerned about investment income. I need to build wealth for the future. (5 points)

Total _____

Assessing Your Risk Tolerance

Which one of the following best describes your attitudes about investing?

* I am uncomfortable with significant upswings and downswings in my portfolio and prefer its value remain relatively stable. (0 points)

* I can withstand some up and down movement in my portfolio’s value, but I would not describe myself as a risk taker. (3 points)

* I understand that I must take some risk to benefit from the long-term rewards of investing and am prepared to be patient, even in market downturns. (5 points)

* I think of myself as a risk taker and do not mind substantial swings in my portfolio’s value even if it means large losses. (15 points)

Total _____

What’s Your Time Horizon?

What is your time frame for achieving your investment goals, or when will you want or need to access your investment portfolio?

* One to five years (3 points)

* One year or less (1 point)

* Five to 10 years (5 points)

* More than 10 years (10 points)

Total _____

Who Are You?

Cautious Clay: Scores 2 to 12. This personality type isn’t financially or mentally suited for risk. Cautious is most comfortable with investments that provide current income and stable value. Investments that cannot be readily sold without losing substantial value should be avoided. This person favors investments such as short-term bonds and short-term bond mutual funds, CDs, and dividend-paying stocks and stock mutual funds with the potential for rising dividend income.

Stable Mabel: Scores 10 to 20. Mabel doesn’t need much, if any, current income from investments and wants long-term growth with only a moderate level of risk. Her preference is balance between conservative, income-producing investments and those with more long-term growth potential.

Risky Ricardo: Scores 18 to 30. Mr. Ricardo is willing to accept a higher degree of risk in exchange for the possibility of greater long-term returns. Long-term growth investments such as stocks and growth stock mutual funds are the likely way to increase the growth potential of his portfolio.

This is a simple sample of questions to determine your investment personality. For a more complete picture, please see www.agedwards.com/personality and learn more by completing the online, interactive Basic Asset Allocation Profile. For more information on asset allocation and developing an investment plan that is right for you, call A.G. Edwards toll free at (866) 864-6533 and request the free brochure “Controlling Risk on Your Way to Retirement.”