| 1. Please describe what you feel investment risk is in a word or short sentence |
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| 2. Using the definition of risk you gave in #1, indicate the general level of investment risk you are willing to accept. |
(note: Risk and Return are
related, you generally
cannot get a high rate
of investment return without assuming a high level of
investment risk) |
A. Low Risk (Maximum attention paid to minimizing my answer to #1) |
2A |
B. Low/Medium Risk (A lot of attention paid to minimizing my answer to #1) |
2B |
C. Medium/High Risk (Some attention paid to minimizing my answer to #1) |
2C |
D. High Risk (Little attention paid to minimizing my answer to #1) |
2D |
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| 3. What is the rate of return goal for your total combined investment portfolio? |
(note: S&P 500 has
returned an average of approximately 11% over
the last 75 years but
having more then 70% of
your investment portfolio in
stocks is considered taking
very high risk) |
A. 5% to 7% average annual return |
3A |
B. 7% to 9% average annual return |
3B |
C. 9% to 11% average annual return |
3C |
D. Over 11% average annual return |
3D |
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4. Which of the following best describes your investment objectives and temperament?
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A. Income: Preservation of capital with emphasis on generating current income. Most investment income will be withdrawn and spent. (I want my portfolio to produce income to live off) |
4A |
B. Income & Growth: A combination of current income, preservation of capital and capital appreciation, with the emphasis on preserving capital and generating current income. Some income will be withdrawn. (I want my portfolio to produce income to live off but want principal growth so income will keep pace, or out pace, inflation over the long-term) |
4B |
C. Growth & Income: A combination of capital appreciation and current income, with the emphasis on capital growth. Most income will be reinvested. (I want my portfolio to grow moderately to accumulate wealth for future goals) |
4C |
D. Growth: Maximum long-term capital appreciation, accepting higher risk and volatility. Little or no income expected or withdrawn. (I want my portfolio to grow substantially to accumulate wealth for future goals) |
4D |
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5. Assume you have a portfolio worth $10,000 and you have an equal chance of getting any return within the maximum positive or maximum negative range of returns in one of the scenarios below. Which one portfolio would you choose?
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(note: you will receive a return
between the max and
min returns, not an average) |
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A. You make -$100 or +$500 (-1% or +5%) over the next year |
5A |
B. You make -$300 or +$800 (-3% or +8%) over the next year |
5B |
C. You make -$600 or +$1,200 (-6% or +12) over the next year |
5C |
D. You make -$1,000 or +1,700 (-10% or +17%) over the next year |
5D |
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| 6. How do you feel about inflation and its impact of your investments? |
(note: U.S. annual inflation
has average about 3.25%
since 1926, but has also
been over 10% several years
in that period) |
A. I am satisfied with my investments just keeping pace with the rate of inflation, or being slightly above. I am willing to fore go returns higher than inflation in order to limit the risk in my investments. |
6A |
B. I prefer to achieve returns that are slightly to moderately above the rate of inflation (2% to 4% higher). I am willing to assume some risk in my investments in order to achieve such returns. |
6B |
C. I prefer to achieve returns that are moderately above the rate of inflation (5% to 7% higher). I am willing to assume higher risk in my investments in order to achieve such returns. |
6C |
D. I prefer that my investments achieve returns much higher than the rate of inflation (>7% higher). I am willing to assume significant risk in order to achieve returns that are much higher than inflation. |
6D |
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7. How do you feel about short-term (one year or less) fluctuations in the value of your portfolio?
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A. I do not want the possibility of substantial fluctuations in the value of my portfolio. I prefer to minimize all fluctuations in the value of my portfolio. |
7A |
B. I can tolerate small to moderate fluctuations in my portfolio (-5% to +5%) in order to attempt to out pace inflation over the long term. |
7B |
C. I can tolerate moderate to high amounts of fluctuations in my portfolio (-10% to +10%) in order to attempt to achieve returns higher than inflation over the long term. |
7C |
D. I can tolerate large fluctuations in my portfolio (-/+ >10%) in order to increase the potential of achieving returns much higher than inflation over the long term. |
7D |
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8. Given the fact that it’s normal for the value of investment portfolios to fluctuate year to year, what would you consider to be the maximum acceptable loss to your portfolio over a one-year time frame?
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(note: remember risk and
return are related, you
generally cannot get a high
rate of investment return without assuming a high
level of investment risk) |
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A. Loss of 1% to 5%. (Note: It’s normal for even a conservative portfolio to lose money sometimes.) |
8A |
B. Loss of 6% to 10%. |
8B |
C. Loss of 11% to 20%. |
8C |
D. Loss of more than 20%. |
8D |
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9. How do you see your overall personal and business situation changing in the next few years regarding your family’s employment, cash flow, health, legal, taxes, and potential for unforeseen financial expenditures?
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A. I am worried that there may be significant changes for the worse on the horizon. |
9A |
B. Everything seems stable and okay for now, but I’m still worried. |
9B |
C. Everything seems stable and okay for the foreseeable future, and may improve. |
9C |
D. Everything seems like it will improve substantially over the foreseeable future. |
9D |
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10. About what percent of your retirement income do you anticipate coming from your investment portfolio?
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(note: all retirement income, including Social Security and all employer pensions, etc.) |
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A. Over 75% of my retirement income will come from my investment portfolio. |
10A |
B. 51% to 75% of my retirement income will come from my investment portfolio. |
10B |
C. 25% to 50% of my retirement income will come from my investment portfolio. |
10C |
D. I wont be retiring in the next few years, and/or, less than 25% of my retirement income will come from my investment portfolio. |
10D |
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11. How long do you plan to have your money invested before you begin to make withdrawals from it?
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A. I expect to start withdrawing money in one year or less (or I’m currently withdrawing income). |
11A |
B. I expect to start withdrawing money somewhere between one and five years from now. |
11B |
C. I expect to start withdrawing money somewhere between six and ten years from now. |
11C |
D. Never, or I expect to start withdrawing money more than ten years from now. |
11D |
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12. Once you start withdrawing money, over how much time do you anticipate withdrawing it?
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A. One year or less. |
12A |
B. Over a period of from 1 to 5 years. |
12B |
C. Over a period of from 6 to 10 years. |
12C |
D. More than 10 years, or over my lifetime. |
12D |
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13. If you plan on taking any lump-sum withdrawals from your portfolio in the next year, approximately how much would it be?
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(note: This is in addition to any regular monthly income distributions.) |
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A. I plan to take out 25% or more from my portfolio in the next year. |
13A |
B. I plan to take out between 10% and 25% of my portfolio in the next year. |
13B |
C. I plan to take out less than 10% of my portfolio in the next year. |
13C |
D. I have no plans on making any lump-sum distributions in the next year. |
13D |
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14. Assume that all of your U.S. stock holdings are invested in one stock. The stock market (and your stock) has experienced a near crash, losing 25% of its value in one month, but nothing fundamentally has changed since you decided to buy it. What action would you take assuming this happened last month?
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(note: "nothing fundamentally has changed" means the investment still looks
just as good as when
you originally decided to
purchase it.) |
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A. Sell the stock. I am afraid the market is in a downturn, and I can’t afford more decreases in value. |
14A |
B. Sell half of my investment in the stock. I think that the market may rebound, but I’m not willing to leave all of my investments exposed to further loss. |
14B |
C. Hold the stock. I understand that my investments may be subject to short-term price swings, and am comfortable “weathering the storm.” |
14C |
D. Buy more of the stock to take advantage of its low price. I am comfortable with market fluctuations, and assume that the stock will eventually regain its previous value, or increase in value. |
14D |
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15. Again, assume that all of your U.S. stock holdings are invested in stock. The stock market has been gradually declining at an average of 2% per month. This slow decline is also reflected in your stock. Your investment has lost 24% of its value from a year ago, but nothing fundamentally has changed since you decided to buy it. What would you want to do?
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(note: "nothing fundamentally has changed" means the investment still looks
just as good as when
you originally decided to
purchase it.) |
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A. Sell the stock and realize the 24% loss. I do not believe the stock will regain its value. |
15A |
B. Sell half of my investment in the stock. I am not willing to leave all of my investment at risk for further loss. |
15B |
C. Do nothing. I am comfortable waiting for the stock to regain its previous value, or increase in value. |
15C |
D. Invest more now because the stock is selling for much less than it was 12 months ago. I believe the stock will regain its value, or possibly appreciate higher than its initial value. |
15D |
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16. Which one of the following investment choices have you utilized most in the past and feel most comfortable with investing in the future?
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A. Savings accounts, CDs, savings bonds, money market funds, or government/municipal bonds. |
16A |
B. Corporate bonds or stocks, mutual funds holding these assets, or rental real estate. |
16B |
C. International stocks or bonds; or mutual funds that invest mostly in these types of securities. |
16C |
D. Limited partnerships, commodities like gold, penny stocks, or derivatives such as options or futures. |
16D |
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17. How much experience do you have with investing your own funds?
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A. None (e.g., I have very limited knowledge or expertise). |
17A |
B. A little (e.g., I’ve bought some mutual funds and/or have self-directed my 401(k) funds). |
17B |
C. Some (e.g., I keep informed on the subject and have invested money myself here and there). |
17C |
D. Extensive (e.g., I watch the markets routinely, and control how my funds are invested). |
17D |
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18. What is your estimate of the average annual rate of return for the U.S. stock market over the next 10 years?
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A. Between a loss of 15% and 1% to 5% gain. |
18A |
B. Average annual gains of around 5% to 10%. |
18B |
C. Average annual gains of around 10% to 15%. |
18C |
D. Average annual gains of more than 15%. |
18D |
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19. How many people currently depend on you for financial support?
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A. 5 or more |
19A |
B. 3 - 4 |
19B |
C. 1 - 2 |
19C |
D. none |
19D |
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20. What’s your outlook for U.S. business conditions over the next few years?
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(note: economic growth, employment, inflation and the overall economy) |
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A. I am worried that there may be a slowdown in business, higher inflation, and/or higher unemployment. |
20A |
B. I think that business conditions and the overall economy will be about the same, but I’m still worried. |
20B |
C. I think that business conditions and the overall economy will be about the same, and may improve. |
20C |
D. I think that business conditions and the overall economy will improve substantially. |
20D |
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21. Imagine you owned what you thought was a conservative investment portfolio. Over the last year, it lost 5% of its value. Over the same period, the stock market as a whole lost 10%. How would you feel?
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A. I am shocked and upset that my conservative portfolio could actually lose money. |
21A |
B. I am surprised and concerned that my conservative portfolio actually lost money. |
21B |
C. I feel okay that my conservative portfolio lost only 5% when the market was down 10%. |
21C |
D. I am very happy that my conservative portfolio only lost 5% while the market was down 10%. |
21D |
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22. Imagine your growth and income investment portfolio (invested 60% in stocks) increased 15% over the last year, while the stock market as a whole went up 25% over the same period.
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A. I feel okay because I didn’t lose money, and my return was still much higher than bank-type investments. |
22A |
B. I feel okay as long as the portfolio also losses less then the market if the market is down. |
22B |
C. I am concerned that my portfolio did not keep up with the stock market as a whole, but do not want to increase my risk for higher returns. |
22C |
D. I'm not happy and would prefer to forego the income portion of the portfolio to achieve higher returns in the future even though this means taking on more risk of loss. |
22D |
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23. You’ve just received an unexpected, large amount of money, equal to one-half of your current investment portfolio. How would you invest these proceeds?
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A. I would invest in something that offered moderate current income and was very conservative. |
23A |
B. I would invest in something that offered high current income with a moderate amount of risk. |
23B |
C. I would invest in something that offered high total return (current income plus capital appreciation) with a moderately high amount of risk. |
23C |
D. I would invest in something with substantial capital appreciation potential even though it was risky. |
23D |
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Please let us know who filled out this questionnaire.
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| What is your name?: |
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| What company are you with?: |
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| What is your email address?: |
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