Risk tolerance quiz

Choosing the right investment mix for your retirement savings is an important step toward building a comfortable
financial future. The risk tolerance quiz can provide a good starting point. The results will provide you with a sample asset
allocation that takes into consideration your tolerance for investment risk as well as your time frame to retirement.

Understand asset allocation

Your asset allocation plan is the “big picture” — the framework in which you’ll make your investment decisions. It’s the
way you divide your contributions and account balance among the three basic investment categories available in your
retirement plan: stock, bond, and cash alternative funds. It’s based on the idea that investment categories can perform
differently under the same market conditions. For example, when bonds are performing well, stocks may be down and
vice versa. By dividing your contributions and account balance among the three basic investment categories, you may
lower your investment risk and increase the chance of meeting your retirement goals.

Determine your risk profile

Circle the number that most closely fits your personal situation. Then follow the directions at the bottom of the page.

1–Disagree strongly 5–Agree strongly

To obtain above-average returns on my investments, I am

1 2 3 4 5
willing to accept above-average risk.

If an investment loses money over the course of a year, I can

1 2 3 4 5
easily resist the temptation to sell it.

I am comfortable investing in the stock market. 1 2 3 4 5

When I put aside money for retirement, I do not plan on

1 2 3 4 5
accessing it before I retire.

I consider myself knowledgeable about economic issues and

1 2 3 4 5
personal investing.

Add the numbers you circled: ____________. Compare your total score to the investor types below.

Understand your investment type

Conservative (5 to 11) Moderate (12 to 18) Aggressive (19 to 25)
Most likely you are a conservative Most likely you are a moderate Most likely you are an aggressive
investor. Maintaining a fairly stable investor. You are willing to accept investor. You have the ability to
account balance and having a clear some fluctuation in the value of weather short-term volatility in
idea of what your investments are your investments in order to pursue your investments. You are willing
likely to earn is more important to higher return potential. to assume a higher degree of
you than pursuing higher return fluctuation in the value of your
potential. investments to pursue growth
opportunities.
Know your time horizon Sample asset allocation portfolios
Your time horizon is the number of Time Horizon Conservative Moderate Aggressive
years you have before retirement.
n 32% n 28% n 24%
______ your expected retirement 0 to 5 years n 48% n 42% n 36%
age until retirement n 20% n 30% n 40%

______ minus your current age

______ equals your time horizon 6 to 15 years n 28% n 20% n 16%
n 42% n 30% n 24%
until retirement n 30% n 50% n 60%
Sample asset allocation
portfolios n 20% n 12% n 8%
16 to 25 years n 30% n 18% n 12%
These examples provide ideas on until retirement n 50% n 70% n 80%
how to set up a portfolio in line
with your time horizon and investor
type. They are not intended as n 12% n 8% n 4%
26 years or more n 18% n 12% n 6%
recommendations. Use these until retirement n 70% n 80% n 90%
sample asset allocation portfolios
as a starting point for building your
own investment portfolio. n Stable value/money market funds n Bonds n Stocks

Make your investment selections

Now that you’ve built your asset allocation, you can make individual fund selections within your plan. Below are a few
points to keep in mind.
• You have options — Within each investment category (stocks, bonds, and cash alternatives), your retirement plan will
likely offer a number of different funds to choose from. For example, within the stock category, your plan may offer
different funds based on the size of the companies they invest in (referred to as capitalization or “cap” - small cap,
mid cap and large cap), geographic region (U.S. or international), and growth or value style of investing.
• Diversify across different types of investments — There isn’t one right choice for where to invest your money.
At different points in time, one type of fund may do better than another. The key is to diversify, or spread out, your
investments across a range of different types of funds within each investment category to help smooth out the risk
and return over time.
• Asset allocation options — If your plan offers an asset allocation option (such as a target date fund or model
portfolio fund), keep in mind that the asset allocation and diversification are built in. You may only need to select one
fund or portfolio for your account.

Get started today!

RReview
eview yyour
our rretirement
etirement p plan’s
lan’s investment
investment choices
choices and
and build
build your
your own
own investment
investment mix at wellsfargo.com.
mix at wellsfargo.com. Sign
Sign
oon
n tto
o yyour
our aaccount
ccount aandnd sselect
elect yyour
our reretirement
tirement pplan
lan on e AAccount
onththe ccount SuSummary
mmary papage.
ge. ThThen,
en, chchoose AcActions
oose thethe tions & &
IInvestments
nvestments ttab ab ffrom
rom tthe
he ttop
op nnavigation
avigation aand lect MManage
nd seselect anage MMyy InInvestments.
vestments. YoYouu cacan
n alsalso
o cacall the
ll the ReRetirement
tirement
SService
ervice C Center
enter aatt 1<1-800-SAVE-123
-800-SAVE-123 (1(1-800-728-3123)>.
-800-728-3123). ReRepresentatives
presentatives areare
avaavailable
ilable to hto help
elp youyou
MoMonday
nday throthrough
ugh
FFriday,
riday, 7<7:00
:00 a.ma.m.
. toto1111:00
:00 p.p.m.
m. EaEastern
stern TiTime>.
me.

Investments in Retirement Plans:

Diversification and asset allocation do not assure or guarantee better performance and cannot eliminate the risk of investment losses.
The Risk Tolerance Quiz is intended to provide you with a general indication of your current investment personality and does not constitute investment advice.
There may be other factors specific to your situation that are not considered. Your investment risk tolerance may change over time, and you should revisit your
situation from time to time to determine if a selected portfolio is still appropriate for your situation.
This information and any information provided by employees and representatives of Wells Fargo Bank, N.A. and its affiliates is intended to constitute
investment education under U.S. Department of Labor guidance and does not constitute “investment advice” under the Employee Retirement Income
Security Act of 1974. Neither Wells Fargo nor any of its affiliates, including employees and representatives, may provide “investment advice” to any participant
or beneficiary regarding the investment of assets in an employer-sponsored retirement plan. Please contact an investment, financial, tax, or legal advisor
regarding your specific needs and situation. The information provided is not intended to provide any suggestion that you engage in or refrain from taking a
particular course of action.
Recordkeeping, trustee, and/or custody services are provided by Wells Fargo Institutional Retirement & Trust, a business unit of Wells Fargo Bank, N.A., a bank
affiliate of Wells Fargo & Company.
© 2020 Wells Fargo Bank, N.A. All rights reserved. G37965 CAR-0420-03907