ocx The next decision that Janelle needed to make was how she wanted to split her investment between stocks and bonds. While the 401(k) Enrollment form didn't include this question, she recognized that making this decision would make it that much easier for her to pick the funds that she would like to invest in. Janelle had minimal investing experience but recalled a few things her teacher had told her: .Over the long run, the returns on stocks are greater than bonds Stocks are riskier than bonds, so they may have greater volatility in their prices Since young people have a longer time horizon, they should have a higher percentage of stocks You should choose an asset allocation that matches your personality, your time horizon and your goals Many investors have trouble holding stocks when the stock market declines Before making this decision, Janelle wanted to try out a few questionnaires developed by investment firms to see what they would recommend for her. Some of the questions they asked didn't seem to apply to her but she tried her best to complete them as accurately as possible: Questionnaire#1 (online) Questionnaire #2 (paper) She knew in the end, she needed to choose an asset allocation (the split between stocks and bonds) that would work for her based on her goals and that she would stick to over the long-term