Online Investing: Managing Your Risk Tolerance

In order to set you up with the proper mix of stocks and bonds, it's important to understand your risk tolerance. Based on your answers to a short series of questions, you're assigned a risk tolerance score, which then dictates your asset allocation, or investment mix. The more risk you're comfortable with, the greater percentage is allocated to stocks, while those who want less risk will have more bonds in their portfolio. You can also update your risk profile at any time — even manually — and we recommend doing so annually.