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
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  • Format: (000) 000-0000.
  • 1. What is your age?*
  • 2. Do you currently have plans to withdraw 25% or more of the money in this account within the next 5 years for purposes of spending or consumption? (Money you plan to transfer or rollover into another account should not be considered as a withdrawal for purposes of this question.)*
  • 3. The chart below shows a 1-year potential loss and gain of 5 different hypothetical investments of $100,000. Given the potential gain or loss in one year, which investment portfolio would you choose?*

  • 4. Which of these statements would best describe your attitude concerning the performance of your investment over the next 3 YEARS?*
  • 5. When I invest my money, I am:*
  • 6. If the value of your investment portfolio dropped by 20% in one year, what would you do?*
  • 7. What is your goal for this investment?*
  • 8. Generally, I prefer investments that are relatively stable, with few ups and downs, and therefore, I am willing to accept the lower returns that may come with these investments.*
  • Should be Empty: