Risk Tolerance Questionnaire Form

Risk Tolerance Questionnaire

Completing this questionnaire will help us develop a portfolio that will best match your expressed investment objectives, time horizon and risk tolerance. This questionnaire is an important part of creating an appropriate investment program for your unique situation.
Name *

First Name Last Name
Email *

Confirmation Email example@example.com
Phone Number
Date *

Month Day Year
Date
1. How long will it be before you expect to begin making regular withdrawals from this account? *

Less than 2 years 2 - 4 years 4-6 years 7 - 10 years More than 10 years
2. What percentage of the portfolio's current value do you believe you'll need to withdraw annually once withdrawals begin? *

Greater than 8% Greater than 5%, but less than 8% Greater than 2%, but less than 5% Less than 2% I do not intend on withdrawing money from this account in the foreseeable future
3. It is likely that a large percentage of the account will be withdrawn in the next 5 years *

Strongly agree Agree Somewhat agree Disagree Strongly disagree
4. Investments with low rates of return sometimes earn less than the inflation rate, which means that there is a loss of purchasing power. For example, in a year with a 3% inflation rate, a 5% after-tax rate of return before inflation would have a real return of only 2% (5% - 3% = 2%). Which of the following best summarizes your attitudes regarding investment and inflation? *

My money should be "safe" with little or no volatility, even if it means my returns do not keep up with inflation. I prefer to minimize short-term volatility (and the potential for loss), even if it means that my portfolio is only expected to keep pace with or slightly exceed inflation. I prefer a portfolio that seeks to moderately exceed inflation over the long run and I am willing to accept moderate short-term fluctuations in value (and a moderate potential for loss) to achieve this goal. I prefer a portfolio that seeks to substantially exceed inflation over the long run and I am willing to accept large, short-term fluctuations in value (and greater potential for loss) to achieve this goal.
5. Future projected income levels are important to understand when assessing risk. How would you describe your future income cash flow? *

Unpredictable or unstable Fairly consistent Expected to be stable or slightly increase Stable, and I have high confidence it will continue to increase
6. Which response best represents your view about the following statement? - "In my portfolio, I am comfortable with investments that may lose money from time to time, if they offer the potential for higher returns." *

Strongly disagree Disagree Somewhat agree Agree Strongly agree
7. If the market were to drop 20% in a short period, your most likely reaction would be: *

I would sell everything, and it would confirm that I am not comfortable with the market I would sell some positions in the portfolio, and move to "safer" investments I would stay the course, choosing to pay less attention to the financial news I would invest more in attempt to take advantage of low prices
8. The degree to which the value of an investment fluctuates over time is known as "volatility." In general, volatile investments tend to grow faster over time but carry more risk because large upswings can also mean large downswings, and there is no way to know if the ups will be larger than the downs. With respect to your portfolio, how much volatility are you willing to accept? *

Minimal - I do not want to risk losing money, even if it means my returns are relatively small. Some - I am willing to accept occasional short term losses as long as my portfolio is generally structured to grow over time. Moderate - I am willing to accept moderate ups and downs of the market, to pursue higher returns. Considerable - I am willing to take substantial risk to pursue significantly higher returns.
9. Generally, as an investor, the more risk you are willing to undertake - or the more volatility you can withstand - the higher the potential return over a sufficiently long investment time horizon. Review the account values below, of the 5 hypothetical portfolios of $100,000, and their potential gains and losses over a 1 year period, which portfolio would you invest in?

$105,000 / $95,000 $110,000 / $90,000 $115,000 / $85,000 $120,000 / $80,000 $125,000 / $75,000
10. Your investment objective summarizes the primary purpose of your account. It serves to define how assets should be managed. Select the objective that best fits the purpose of your account. *

Preserve asset value Generate current income Achieve asset growth with moderate current income Achieve strong asset growth with nominal income Achieve maximum asset growth
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