Comprehensive Guide
Learn more in our Investing Guide.
How it works
investment risk tolerance assessment — general takes your inputs and produces risk score, recommended stock %, recommended bond %. Determine your investment risk tolerance based on age, income, goals, and time horizon. You provide 4 inputs: Age (number) (default: 35); Annual Income (currency, in dollars) (default: 80000 dollars); Investment Time Horizon (years) (number) (default: 25); Comfort with 20%+ Loss — choose from Would keep investing, Would hold steady, Would sell (default: "medium"). The calculator returns 3 outputs: Risk Score (the primary result); Recommended Stock % (a secondary output); Recommended Bond % (a secondary output). Investment calculations rest on a few variables — principal, return rate, time, and compounding — but their interaction is non-linear enough that intuition alone gets the answer wrong more often than not. This tool runs the real formula with your inputs and shows the numbers that matter, not the rounded approximations from a textbook. With the default values, risk score is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Tips
- Start with the default values to see a baseline result, then change one input at a time to understand which factor matters most for your outcome.
- Replace every default with your actual number — estimates and rules of thumb produce estimates, not answers. Pull your real figures from pay stubs, statements, or account dashboards.
- Use a conservative return rate (5-6% rather than the historical 10%) for planning purposes. Markets have long flat stretches, and planning on the average sets you up for a shortfall.
Frequently asked questions
How aggressive should my investments be?
Rule: 110 - age = stock %. At 35: 75% stocks, 25% bonds. At 50: 60/40. Adjust higher for high risk tolerance.
What does the investment risk tolerance assessment — general calculate?
It takes age, annual income, investment time horizon (years), comfort with 20%+ loss as inputs and computes risk score, recommended stock %, recommended bond %. The primary output is risk score. Determine your investment risk tolerance based on age, income, goals, and time horizon.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.