Quiz: What Is Your Wealth Beta ?

Here is a quiz put together by Robert Frank to help you decide just how transient your wealth may be.Just answer the questions below honestly and tally up your score and read the result from the list at the bottom of the post.

I took the quiz and worried that I had a couple of threes but I managed to remain Low Beta.Heaving a big sigh…..Take the quiz and find out how much danger you might be in.

1. Is your total debt relative to net worth …

a) Less than 10% (1 point)

b) Between 10%-20% (2 points)

c) More than 20% (3 points)

2. Is your total annual spending relative to net worth …

a) Less than 3% (1 point)

b) Between 3%-5% (2 points)

c) More than 5% (3 points)

3. Your most valuable asset is what percentage of your total net worth?

a) Less than 10% (1 point)

b) Between 10%-20% (2 points)

c) More than 20% (3 points)

4. What percentage of your total wealth is illiquid—that is, invested in a house, company or investment that can’t quickly be converted to cash?

a) Less than 10% (1 point)

b) Between 10%-20% (2 points)

c) More than 20% (3 points)

5. How often do you gamble, bet or play the lottery?

a) Never or almost never (1 point)

b) Once a month (2 points)

c) More than once a month (3 points)

6. In social or business situations, do you believe you are the smartest person in the room?

a) Never (1 point)

b) Sometimes (2 points)

c) Most of the time or always (3 points)

7. Do you think your lifestyle five years from now will be …

a) Worse (1 point)

b) Unsure or the same (2 points)

c) Much better (3 points)

SCORE

7–10: Low beta

11–15: Medium beta

15–19: High beta

19 or higher: High-beta crash waiting to happen