Risk Tolerance

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What is Risk Tolerance?

Your investment risk tolerance is the extent to which you are willing to withstand variability in the performance of your investments.

Our LifeStage Investment Management Service (LifeStage) allows you to identify your risk tolerance as Conservative, Moderate or Aggressive. LifeStage considers your risk tolerance in determining your target investment mix.

The chart below is intended to help you self-identify your LifeStage risk tolerance. Because your risk tolerance may change with market conditions or life events, we encourage you to reevaluate your risk tolerance regularly.

Your risk tolerance might be Conservative if you: Your risk tolerance might be Moderate if you: Your risk tolerance might be Aggressive if you:
• Are willing to accept the potential for below-average investment performance in an effort to avoid higher investment risk

• Are likely to sell investments in volatile markets with rapidly fluctuating market performance, and

• Are expecting to exhaust all or most of your account balance within seven or fewer years
• Are willing to accept the potential for average investment performance with average investment risk

• Are willing to tolerate some modest fluctuating market performance, and

• Are expecting to exhaust all or most of your account balance within eight to 15 years
• Are willing to accept the potential for above-average investment performance with above-average risk

• Are unlikely to sell investments in volatile markets with rapidly fluctuating market performance, and

• Are expecting to exhaust all or most of your account balance in 15 years or more

 
If you do not specify a risk tolerance, you will be identified as Moderate.

 
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