Vanguard Risk Assessment

Vanguard Risk Assessment

This questionnaire is used to inform our conversation about how to invest your money. Your result is not the final word, just one data point and a discussion starter. It should take about 5 minutes or less to complete the 11 questions.
Household
Contact
Name*

First NameLast Name
Email*
example@example.com
Date of Previous Risk Assessment
Risk Score & Suggested Investment Allocation

1. I plan to begin taking money from my investments in …*

Less than 1 year1 - 2 years3 - 5 years6 - 10 years11 - 15 yearsMore than 15 years

2. As I withdraw money from these investments, I plan to spend it over a period of …*

2 years or less3 - 5 years6 - 10 years11 - 15 yearsMore than 15 years

3. When making a long-term investment, I plan to keep the money invested for …*

1 - 2 years3 - 4 years5 - 6 years7 - 8 yearsMore than 8 years

From September 2008 through November 2008, stocks lost more than 31% of their value. If I owned a stock investment that lost about 31% of its value in three months, I would … (If you owned stocks during this period, please select the answer that matches your actions at that time.)
4. If I owned a stock investment that lost about 31% of its value in three months, I would …*

Sell all of the remaining investmentSell some of the remaining investmentHold on to the investment and sell nothingBuy more of the investment

5. Generally, I prefer an investment with little or no ups or downs in value, and I am willing to accept the lower returns*

I strongly disagreeI disagreeI somewhat agreeI agreeI strongly agree

6. When the market goes down, I tend to sell some of my riskier investments and put the money in safer investments.*

I strongly disagreeI disagreeI somewhat agreeI agreeI strongly agree

7. Based only on a brief conversation with a friend, coworker, or relative, I would invest in a mutual fund.*

I strongly disagreeI disagreeI somewhat agreeI agreeI strongly agree

From September 2008 through October 2008, bonds lost nearly 4% of their value. If I owned a bond investment that lost almost 4% of its value in two months, I would … (If you owned bonds during this period, please select the answer that matches your actions at that time.)
8. If I owned a bond investment that lost almost 4% of its value in two months, I would...*

Sell all of the remaining investmentSell some of the remaining investmentHold on to the investment and sell nothingBuy more of the investment

The chart below shows the highest one-year loss and the highest one-year gain on three different hypothetical investments of $10,000.
9.Referring to the chart above, given the potential gain or loss in any one year, I would invest my money in …*

Investment AInvestment BInvestment C

10. My current and future income sources (such as salary, Social Security, pension) are...*

Very unstableUnstableSomewhat stableStableVery stable

11. When it comes to investing in stock or bond mutual funds (or individual stocks or bonds), I would describe myself as …*

Very inexperiencedInexperiencedSomewhat experiencedExperiencedVery experienced

Your Results!
Score
Score & Suggested Investment Allocation
Income

An income portfolio consists primarily of dividend-paying stocks and coupon-yielding bonds. if you're comfortable with minimal risk and have a short- to midrange investment time horizon, this approach may suit your needs. Keep in mind, depending on the account, dividends and interest can be taxable.
Balanced

A balanced portfolio invests in both stocks and bonds to reduce potential volatility. An investor seeking a balanced portfolio is comfortable tolerating short-term price fluctuations, is willing to tolerate moderate growth, and has a mid- to long-range investment time horizon.
Growth

A growth portfolio consists of mostly stocks expected to appreciate over the long-term, but with potentially large short-term price fluctuations. An investor seeking this portfolio has a high risk tolerance and a long-term investment time horizon. Generating current income isn't a primary goal.

Thank you for taking this questionnaire!

Did your score match your expectations?

There are many more factors besides your risk tolerance score that go into selecting an appropriate investment strategy. This questionnaire is just a tool for stimulating further discussion.

We can discuss these results at our next meeting or send me an email to schedule a call. If you're not already a client, feel free to schedule an intro call.
Please feel free to add any comments, questions, or anything that will help communicate your expectations for your investments.

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Your Results!