Risk Tolerance

  1. Which of the following best describes your primary financial goal for this investment?
    • My goal is preserving the real (inflation-protected) value of my investments; I am not concerned with out-performing the market.
    • My goal is generating current income; I am not concerned with growing the value of my investment.
    • My goal is a combination of generating current income and growing the value of my investment.
    • My goal is growing the value of my investment, and I am willing to tolerate losses in some years.
  2. What is the time horizon for your investment?
    • 1-3 years: these investments need to remain very liquid.
    • 3-5 years: I can only tolerate a small amount of volatility.
    • 5-10 years: 1 can tolerate a moderate amount of volatility.
    • Over 10 years: these assets are invested for the long term and can tolerate short-term fluctuations in value.
  3. The assets considered for investment are what percentage of your total investable assets?
    • More than 75%
    • 50% – 75%
    • 25% – 50%
    • Less than 50%
  4. Please choose the phrase that best describes the degree to which you will rely on these assets:
    • These investments are critical to my current and future financial well-being; I have few other assets or sources of current and future income.
    • While these assets are a significant portion of my wealth; I have other assets and additional sources of current and future income.
    • While these investments are an important portion of my wealth; I have considerable additional assets and other significant sources of current and future income.
    • This investment is fairly small in relation to my overall wealth and my other sources of current and future income.
  5. How likely is it that you will need to withdraw a significant portion of these assets prior to your planned time horizon to pay for home, education, or some other expense?
    • There is little to no chance.
    • It is a possibility, but not likely.
    • There is a strong chance.
    • I will definitely be withdrawing these assets.
  6. If you do expect to withdraw a significant portrion of your account, when is it likely to be?
    • Not applicable.
    • Within 5 years.
    • Within 5-10 years.
    • More than 10 years from now.
  7. Assume your investment horizon is more than 10 years. During the second year of investment, your portfolio declines to less than its initial value. Which answer best describes your reaction?
    • I never want to see the value of my invesmtments decline.
    • I would be disappointed by this kind of loss, but I need a balanced, diversified portfolio to reach my long-term goals.
    • I don’t pay attention to short-term fluctuations in market value because I am investing for growth and I will not need mt money until the end of my investment time horizon.
  8. What is your target retirement date? (i.e., When do you plan to quit work “for good”?)
  9. With regard to investments, please rank the following in importance to you: Service Safety Performance
  10. If an investment we purchase becomes cheaper, as a general rule, would you think it wise to buy more? Yes No