Building a financial profile should be considered the most important first step in investing. Understanding your own psychological attitude towards money can serve you well in selecting the appropriate investment product for your portfolio. While risk tolerance tests are not scientific, they can be a indicator of your emotional feelings towards money.   Here are some basic entry-level questions for you to consider: How long would your non-retirement savings last in the event of a financial emergency? 0 – 3months, 4 – 6 months, 6 – 12 months, More than 12 months? About how much of your monthly income do you use to pay installment debt? I have no installment debt.             Less than 25% of monthly income.             25% – 50% of monthly income.             More than 50% of monthly income. How long would your non-retirement savings last in the event of a financial emergency? How would you respond to the following statement: Protecting my portfolio from loss is more important than achieving high returns.             Strongly Agree, Agree, Risk and Return are Equally Important, Disagree or     Strongly Disagree? From an original investment of $40,000, your portfolio now worth $80,000 suddenly drops by 20%, or $16,000. How would you   Read more…