Understand asset allocation and your risk tolerance
As you develop your college savings investment plan and strategy, one important consideration is your ability to tolerate risk. How you allocate your money between stocks, bonds, and short-term investments should be based on your comfort level with the volatility or price swings of your portfolio as it compares to the longer-term return potential. Some individuals are comfortable with wide market swings, and others prefer less fluctuation with a generally lower return potential.
So are you aggressive, conservative, or somewhere in between? Our Asset Allocation/Risk Tolerance Questionnaire is designed to help you understand where you fall on the risk spectrum.