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Risk Tolerance Questionnaire and Personal Analysis of Results How much risk can you take? Proceed.

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Presentation on theme: "Risk Tolerance Questionnaire and Personal Analysis of Results How much risk can you take? Proceed."— Presentation transcript:

1 Risk Tolerance Questionnaire and Personal Analysis of Results How much risk can you take? Proceed

2 Instructions: There are 15 questions. This is a self-scoring quiz to help you determine your investment objectives. Answer each question and write the corresponding number on scratch paper. Click the box by your answer to go to the next question. Then total the numbers for each section. Fill in the scorecard on the last page to determine your investment objective. Proceed

3 Question 1 Time Horizon Section What is your current age? 56 and over 46 to to to 35 1 of 15 (1) (2) (3) (4) Back

4 Question 2 Time Horizon Section What is your primary financial goal? Wealth preservation Retirement planning Wealth accumulation 2 of 15 (1) (2) (3) Back

5 Question 3 Time Horizon Section What is the time frame for you to achieve your financial goals? 0 to 5 years 5 to 10 years 10 years or longer 3 of 15 (1) (2) (3) Back

6 Stop Here! Total your score so far. This is your “Time Horizon Total” We will refer to it at the end. Click here to continue Back

7 Question 4 Financial Goals Section Which of the following best describes your financial goals? Preserving principal and earning a moderate amount of income. Generating a high amount of current income. Generating some current income and growing assets over an extended time frame. 4 of 15 Growing assets substantially over an extended time frame. (1) (2) (3) (4) Back

8 Question 5 Financial Goals Section How do you expect your standard of living 5 years from now to compare to your standard of living today? Less than it is today The same as it is today Somewhat higher than it is today 5 of 15 Substantially greater than it is today (1) (2) (3) (4) Back

9 Question 6 Financial Goals Section 5 years from today, you expect your portfolio values will be: Portfolio value is not my primary concern; I am more concerned with current income. The same as or slightly more than it is today Greater than it is today 6 of 15 Substantially greater than it is today (1) (2) (3) (4) Back

10 Question 7 Financial Goals Section Generating current income from your portfolio is: A primary concern (only if you are about to retire) Not important 7 of 15 (1) (2) Back

11 Question 8 Financial Goals Section With the income generated from your portfolio, you plan to: Use it for living expenses Use some and reinvest some 8 of 15 Reinvest all income (1) (2) (3) Back

12 Stop Here! Total your score for the “Financial Goals Section” (questions 4 through 8) We will refer to it at the end. Click here to continue Back

13 Question 9 Risk Tolerance Section You have just received a large amount of money. How would you invest it? Something that offered moderate current income and was very conservative. Something that offered high current income with a moderate amount of risk. 9 of 15 Something that offered high total return (current income plus capital appreciation) with a moderately high amount of risk. Something that offered substantial capital appreciation even though it has a high amount of risk. (1) (2) (3) (4) Back

14 Question 10 Risk Tolerance Section Which of the following statements would best describe your reaction if the value of your portfolio suddenly declined by 15%? I would be very concerned because I cannot accept fluctuations in the value of my portfolio. If the amount of income I receive was unaffected, it would not bother me. 10 of 15 Although I invested for long-term growth, even a temporary decline would concern me. Because I invest for long term growth, I would accept temporary fluctuations due to market influences. (1) (2) (3) (4) Back

15 Question 11 Risk Tolerance Section Which of the following investments would you feel most comfortable owning? Certificates of deposit U.S. Government securities 11 of 15 Blue chip stocks Stocks of new growth companies (1) (2) (3) (4) Back

16 Question 12 Risk Tolerance Section Which of the following investments would you least like to own? Certificates of deposit U.S. Government securities 12 of 15 Blue chip stocks Stocks of new growth companies (1) (2) (3) (4) Back

17 Question 13 Risk Tolerance Section Which of the following investments do you feel are the most ideal for your portfolio? Certificates of deposit U.S. Government securities 13 of 15 Blue chip stocks Stocks of new growth companies (1) (2) (3) (4) Back

18 Question 14 Risk Tolerance Section How optimistic are you about the long-term prospects of the economy? Very pessimistic Unsure 14 of 15 Somewhat optimistic Very optimistic (1) (2) (3) (4) Back

19 Question 15 Risk Tolerance Section Which of the following best describes your attitude about investments outside the U.S.? Unsure I believe the U.S. economy and foreign markets are interdependent. 15 of 15 I believe overseas markets provide attractive investment opportunities. (1) (2) (3) Back

20 Stop Here! Total your score for the “Risk Tolerance” (questions 9 through 15) We will refer to it at the end. Click here to continue Back

21 Time Horizon Totalx1= Financial Goals Totalx2= Risk Tolerance Totalx3= Total Score Adjusted Total RangeInvestment Objective 34 to 57Income with Capital Preservation 58 to 83Income with Moderate Growth 84 to 99Growth with Income 100 to 114Growth 115 to 125Aggressive Growth Click here to see investment objective definitions Back

22 Investment Objective Definitions Income with Capital Preservation Income with Moderate Growth Growth with Income GrowthAggressive Growth Need for capital preservation and current income Need for current income Equal focus on growth and income Little need for current income No need for current income No focus on growthModerate focus on growth Moderate tolerance for risk Focus on growthFocus on aggressive growth Lowest tolerance for risk Low tolerance for riskIntermediate investment horizon High tolerance for riskHighest tolerance for risk Shortest investment horizon Short / intermediate investment horizon Intermediate / long investment horizon Long investment horizon Do your current investments align with your investment objective? We will help you find out! Call us for an analysis of your results! (415) Back

23 Risk Tolerance Quiz Purpose: The Investor Profile Quiz is designed to help you gain an in-depth understanding of your investment objective, which serves as the foundation of your portfolio. Your investment objective is based on many factors, including your time horizon, financial goals and risk tolerance. To build your portfolio, you must clearly define your financial goals. Short-term goals may include buying a house or financing a dream vacation. Long-term goals may include saving for your child’s education or planning for your retirement. Your time horizon defines when you want to achieve a goal. It could be 1-5 years, 5-10 years, 15 years, 30 years or more. Risk is an unavoidable part of investing. Historically, investments with higher return potential have required a higher tolerance for risk. Therefore, by clearly defining your risk tolerance, we will be better prepared to choose the most appropriate investments for your portfolio. Over time, your goals and financial situation may change. It’s important for us to discuss any changes, as your original investment objective may need to be re-evaluated. Back

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