Risk Tolerance Questionnaire Form

Risk Tolerance Questionnaire

Determining an Investment Strategy
INTRODUCTION

What to Expect
This questionnaire is designed to help determine an appropriate investment strategy for you. The information you provide will be used only for that purpose.

First, it asks for information about the amount of time you expect to have before you start making significant withdrawals from your portfolio (“time horizon”). Next, it asks for information about how you perceive your ability or inclination to tolerate ups and downs in the value of your portfolio over time (“risk”).

This information will be used to assist your financial advisor in developing an investment strategy and build a portfolio to help you meet your financial goals.

What is an Investment Strategy?
The investment strategies are represented by a number that corresponds to the percentage of equities (stocks) in the portfolio. For example, an investment strategy of “60” refers to a portfolio comprised of 60% equities and 40% more conservative investments like bonds.

The greater the percentage of equities in a portfolio the higher its longterm expected return. However along with higher expected returns come higher expected risk - ups and downs. Finding the right balance between the desire for higher returns and the ability to tolerate a higher level of risk is important for longterm investment success.

Selecting a Strategy
Many people have multiple financial goals. Each goal may have differing time horizons. You may even feel that you are willing to take more risk to fund certain goals than others. The facts and circumstances of your situation should be considered to identify an investment strategy that balances these competing factors.

What to Expect When You’re Done
Once you have completed this questionnaire and selected an appropriate investment strategy, the next step is to choose a portfolio that can implement that strategy.

Tips:
In answering the following questions, try not to answer based on what you think you should say. Instead, answer based on how you truly feel about the answer to each question. Don’t over-think it. Respond spontaneously.
Today's Date

MonthDayYear
Date
Name

First NameLast Name
Email
example@example.com
Phone Number
Format: (000) 000-0000.
Younger than 4546-5354-6263-69Older than 70
YesNo
Time Horizon Score
Investment Portfolio AInvestment Portfolio BInvestment Portfolio CInvestment Portfolio DInvestment Portfolio E
I can tolerate significant declines.I can tolerate moderate declines.I can tolerate limited declines.I can tolerate minimal declines.I cannot tolerate any decline.
Most concerned with NOT losing money.Equally concerned with not losing and making money.Most concerned with making money.
Move ALL my money to more conservative investments immediately to reduce the losses.Move SOME of my money immediately, and be prepared to move the rest of my money if things continue to deteriorate.Take NO action now, but closely monitor the situation. Consider moving some of my money to more conservative investments if things continue to deteriorate.Take NO action and ride it out.Consider buying more because prices are so low.
To avoid losing money.To grow a little money.To grow money moderately.To grow money somewhat aggressively.To grow as much money as possible.
I strongly disagree.I disagree.I neither agree nor disagree.I agree.I strongly agree.
YesNoN/A
YesNo
Risk Tolerance Score
Combined Investor Score
Should be Empty: