2. Moderately Conservative Investor

If a worried investor can tolerate a little more risk than the Conservative investor, but still is adverse to large short-term downside fluctuations, and wants a little more return with a little less income, then this is the category for them.

The typical investor in this category is either retired and getting their paycheck from portfolio income, soon to be retired, or has been burned by poor investment management and has lost money in the past. These folks want to be protected somewhat from large downside market fluctuations and are willing to not fully-participate when markets rally upwards to get it.

Their portfolio will still fall when the markets' decline, but they want to be somewhat protected from sudden double-digit percentage declines in their portfolios. They want to be in the game, but they are definitely playing defense.

3. Growth Investor

This profile is suited to the patient investor. The Growth investor is seeking investments expected to grow at an above-average rate compared to its industry or the overall market. Emphasis is placed primarily on equity investments designed to achieve growth over a longer time horizon. Less emphasis is placed on cash, cash equivalents and fixed income investments. Growth investors rarely require cash from their investment account.

They would like their portfolio to grow faster than inflation and understand that the value of their portfolio may fluctuate somewhat and are comfortable with that. The target asset allocation for this profile is 80 percent equity and 20 percent fixed income. The Growth investor's risk tolerance is best described as medium to high and they are willing to accept up to 30 percent of their account in riskier assets.