Risk Tolerance Assessment

Risk Tolerance Assessment
Name*

First NameLast Name
1. When do you expect to begin withdrawing money from your investment account? (choose one)*

Less than 2 years2 years3-4 years5-7 years8-10 yearsMore than 10 years
2. Once you begin withdrawing money from your investment account, how long do you expect the withdrawals to last?*

I plan to take a lump sum distribution1-4 years5-7 years8-10 yearsMore than 10 years
3. Which of the following choices best reflects your attitude toward inflation and risk?*

My main goal is to avoid loss, even though I may only keep pace with inflation.My main goal is to earn slightly more than inflation, while taking on a low level or risk.My main goal is to increase my portfolio's value. Therefore, I am willing to accept short-term losses, but I am not comfortable with extreme performance shifts that may be experienced in the most aggressive investment options.My main goal is to maximize my portfolio value, and I am willing to take on more extreme levels of risk and performance shifts in my portfolio to do so.
4. The table above presents a hypothetical worse case loss, expected gain, and best case gain of five examples over a one-year period with an initial $100,000 investment. Which portfolio would you prefer to hold?*

Portfolio 1Portfolio 2Portfolio 3Portfolio 4Portfolio 5
5. Investing involves a trade-off between risk and return. Which statement best describes your investment goals?*

Protect the value of my account. In order to minimize the chance for loss, I am willing to accept the lower long-term returns provided by conservative investments.Keep risk to a minimum while trying to achieve slightly higher returns than the returns provided by investments that are more conservative.Focus more on the long-term investment returns. Long-term growth is equally as important as managing portfolio risk.Maximize long-term investment returns. I am willing to accept large and sometimes dramatic short-term fluctuations in the value of my investments.
6. Historically, markets have experienced downturns, both short-term and prolonged, followed by market recoveries. Suppose you owned a well-diversified portfolio that fell by 20% (i.e. $1,000 initial investment would now be worth $800) over a short period, consistent with the overall market. Assuming you still have 10 years until you begin withdrawals, how would you react?*

I would not change my portfolio.I would wait at least one year before changing to options that are more conservative.I would wait at least three months before changing to options that are more conservative.I would immediately change to options that are more conservative.
7. The graph above shows the hypothetical best and worst results of five sample portfolios over a one year holding period. Note that the portfolio with the highest upside also has the largest downside. Which of these portfolios would you prefer to hold?*

Portfolio APortfolio BPortfolio CPortfolio DPortfolio E
8. I am comfortable with investments that may frequently experience large declines in value if there is a potential for higher returns. What is your view regarding this statement?*

Strongly disagreeDisagreeSomewhat agreeAgreeStrongly agree
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