If you lived in Westeros, how would you manage your money?
Whether you watch the show or read the books (or do both!), you know each character has his or her own personality.
Give Sansa Stark a pile of cash and you can probably guess what she’d do with it. And if you identify with her, you probably already know what you’d do with a pile of cash as well. What about the Mother of Dragons? What would she do? From Littlefinger to Jon Snow (do you know anything?), you can probably figure out what they will do next in some capacity.
But how does that translate to investing risk tolerance in today’s real world?
Take our Game of Thrones risk tolerance quiz to see who you’re most like:
Check out the risk tolerance quiz results
Now that you know who you are, check out the other characters. You might decide to tweak your own style to better match a different character:
Sansa is all about maximum safety. You keep your head down, make as many safe moves as possible, and try to stay out of the limelight. You’ll go into deep hiding, keep your money in the safest places, and wait for things to shake out before moving forward.
Tywin likes to back what he considers winners. You’ll take one or two small, calculated risks, but mostly it’s about shoring up the position. There’s a strong focus on making sure you can get slightly higher yields without taking on too much risk.
Petyr knows how to be patient. You know that you might need to go out on a limb a little bit in order to reach your long-term goals. But you’re not going to get too crazy. You’re willing to take a few calculated risks, stake out your position, and then ride out the storm to build your future.
Jon knows that sometimes you do something a bit risky to get better results. You are willing to ride out the bad stuff and take a couple setbacks in order to see bigger gains down the road. You’re patient, but when you see an opportunity, you take it.
Tyrion is all about taking the leap to greatness. While you’re not quite ready to risk it all, you will jump when you see you have a chance. You’re ready to be a little unconventional to diversify your options, even if it means striking out on a new adventure. You’re willing to accept that some slightly bigger losses might need to be overcome. You’re also not afraid to change course if a better proposition presents itself.
Daenerys knows what she wants and will get it, even if it seems risky. You’re willing to try something different, even if it might fail, in order to see potentially dragon-sized results. While you know you might have to change tactics if things get a little dicey, you’re willing to try new things for a chance at better things later. Unfortunately, this sometimes means your setbacks are bigger than expected.
Cersei will risk it all for the big time. You’re willing to take bigger risks to see huge returns. Some of your moves might be verging on gambling, but if it all falls out like you want, you have the chance for amazing results. The downside, of course, is that you run the risk of losing everything.
What is risk tolerance?
Boiled down to its most basic concept, risk tolerance is how much loss you can stand.
Your risk tolerance isn’t just about the numbers, though. Some of it has to do with your emotional ability to handle the ups and downs that come with the market. That’s the “how well you sleep at night” factor.
If you are extremely risk-averse, however, it can be detrimental to your ability to grow your wealth in a practical manner.
Risk aversion isn’t the only hurdle investors face, however. It can also be a problem if you like risk too much. What happens if you take on riskier assets, only to lose big and jeopardize your future?
This risk tolerance quiz helps you identify where you might be right now in terms of investment behavior. It offers a look at what might be holding you back from optimizing your portfolio for the future, as well as ways to overcome those potential stumbling blocks.
Start investing with a measured approach
For the most part, if you plan to build wealth over time for retirement, a measured approach is the way to go. It’s not sexy, and it won’t bring you untold riches tomorrow, but it can help you reach your goals and help you retire with the lifestyle you hope for.
Consult with a financial professional to create a plan. When you’re ready, open an account with one of our trusted partners.
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