Discover Your Asset Mix/Investor Profile

Do you remember 2008, 2000 or maybe as far back as 1987? Each generation has one or more stock market crashes etched in its collective memory. Uncomfortable as they are, it’s normal behaviour for stock markets, and to a lesser extent bond markets, to move up and down. Asset allocation is the best approach to manage the various risks involved in investing. It broadly diversifies your portfolio (“investment pie”) by:

  • Asset class
  • Geographic region

Building Assets for Retirement?

Identifying your risk capacity and risk tolerance is critical when developing an appropriate asset mix for your retirement assets. But your investor identity is also influenced by your age, investment characteristics and several other factors. All are used to create your investor profile. Answer the questions below to determine your investor profile and view your ideal asset allocation. 

Investor Profile Questionnaire Calculator

Many experts believe that long-term investment success is more a function of how assets are allocated among asset classes rather than the individual securities in which they are invested. This asset allocation tool will help you to identify a potential mix of cash, bonds, and stocks that corresponds to your personal demographics and your investment experience. These sample mixes are only examples and are not specific recommendations. If you want a more detailed view of an allocation that relates to your individual needs and preferences, your financial advisor has on-line access to sophisticated financial planning software and would be happy to provide you with a more highly individualized analysis.

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Don’t just use one tool. They aren’t all the same. Try out two or three and compare the results. Wherever you have investment accounts, these firms likely have a tool or questionnaire available for self-assessments. The accuracy of any calculator is limited based on how you answer the questions and the weighting assigned to each question. Small differences may result in different calculators producing different target asset mixes.

The tools select how best to allocate your investments between each asset class, as a percentage of the total portfolio. This your target asset mix. Build your retirement portfolio (all of your accounts designated for retirement) to align with your target asset mix.

Tools, such as asset allocation questionnaires and investor profiles, are designed to suggest appropriate asset mixes for retirement savings. They are not necessarily designed for investing in the short term.

Identifying your retirement portfolio’s asset mix is a crucial step. It helps you to:

  • Make reasonable assumptions regarding the level of risk and return you can expect based on past history.
  • Limit the level of risk you assume, based on your personal circumstances.
  • Recognize if your current investments have too much or too little risk for your needs.
  • Recognize if you’re a good candidate for further diversification (fine-tuning your portfolio into smaller pieces).

Are You on Target?

Your current asset mix, may be different from your target mix. Aligning the two is crucial. If they don’t match, you could be taking on more or less risk than is suitable for your portfolio. You might think you’re okay but won’t be if an unexpected negative return makes it harder to meet your objectives. To find out if you’re on target, see Rebalance Your Portfolio.

Planning Tips

Review Questions Beyond the Investor Profile when examining your target asset mix, to determine if there are any considerations that you should take into account.

As you approach retirement, your investor profile may change. You may need to consider reallocating some of your assets. Begin periodically reviewing your asset mix at least ten years before your planned retirement date.