Clone of Investment Risk Tolerance Assessment Form

Investment Risk Tolerance Assessment

Thank you for taking the time to answer these questions.
Investor Information
1. Investor Name
2. What is your gender?

FemaleMale
3. What is your marital status?

Never marriedNot married but living with significant otherSeparated or divorcedWidowedShared living arrangement
4. What is your current age in years?

under 2525-3435-4445-5455-6465-7475 and older
5. What is your highest level of education you have completed?

Some high school or lessHigh school graduateSome college/trade/vocational trainingAssociate degreeBachelors degreeGraduate or professional degree
6. Who is responsible for investment allocation decisions in your household?

I, and/or someone in my household makes these decisionsI rely on advice from a professional (ie: broker, financial planner, or other consultant)
7. How frequently does a member of your household review the status of your investments?

DailyMonthlyQuarterlyYearly
Investor Questionnaire
8. In general, how would your best friend describe you as a risk taker?

A real risk avoiderCautiousWilling to take risks after completing adequate researchA real gambler
9. You are on a TV game show and can choose one of the following. Which would you take?

$10,000 in cashA 50% chance of winning $25,000A 25% chance of winning $50,000A 5% chance of winning $250,000
10. You have just finished saving for a "once-in-a-lifetime" vacation. Three weeks before you plan to leave, you lose your job. You would?

Cancel the vacationTake a much more modest vacationGo as scheduled, reasoning that you need the time to prepare for a job searchExtend your vacation, because this might be your last chance to go first-class
11. If you unexpectedly received $100,000 to invest, what would you do?

Deposit in a bank account, money market account, or an insured CDInvest it in safe high quality bonds or bond fundsInvest it in stocks or stock funds
12. in terms of experience, how comfortable are you investing in stocks or stock funds?

Not at all comfortable (1)Somewhat comfortable (2)Very comfortable (3)
13. When you think of the word "risk" which of the following words come to mind first?

LossUncertaintyOpportunityThrill
14. Some experts are predicting that hard assets such as gold, jewels, collectibles, and real estate will increase in value and that bond prices may fall. However, experts tend to agree that government bonds are relatively safe. Most of your investments are currently in government bonds. What would you do?

Hold the bondsSell the bonds, put half the proceeds into money market accounts and the other half into hard assetsSell the bonds and put the total proceeds into hard assetsSell the bonds, put all the money into hard assets, and borrow additional money to buy more hard assets
15. Given the best-and-worse case returns of the four investment choices below, which would your prefer?

$20,000 gain best case; $0 gain/loss worst case$80,000 gain best case; $20,000 loss worst case$260,000 gain best case; $80,000 loss worst case$480,000 gain best case; $240,000 loss worse case
16. In addition to whatever you own, you have been given $10,000. You are now asked to choose between:

A sure gain of $5,000A 50% chance to gain $10,000 and a 50% chance to lose nothing
17. In addition to whatever you own, you have been given $20,000. You are now asked to choose between:

A sure loss of $5,000A 50% chance to lose $10,000 and a 50% chance to lose nothing
18. Suppose a relative left you an inheritance of $500,000, stipulating in the will that you invest ALL the money in one of the following choices. Which one would you select?

A savings account or money market mutual fundA fund that owns stocks and bondsA portfolio of 15 common stocksCommodities such as gold, silver, and oil
19. If you had to invest $250,000, which of the following investment choices would you find most appealing?

60% in low-risk investments, 30% in medium-risk investments and 10% in high-risk investments30% in low-risk investments, 40% in medium-risk investments and 30% in high-risk investments10% in low-risk investments, 40% in medium-risk investments and 50% in high-risk investments
20. Your trusted friend and neighbor, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful. However, if the mine is a bust, the entire investment is worthless. Your neighbor estimates the chance of success is only 20%. If you had the money, how much would you invest?

NothingOne month's salaryThree month's salarySix month's salary
21. Generally, I prefer investments with little or no fluctuation in value, and I'm willing to accept the lower return associated with these investments.

Strongly disagreeDisagreSomewhat agreeAgreeStrongly Agree
22. Assuming you are investing in only one of the following bonds, which bond do you choose?

A high-yield (junk) bond that pays a higher interest rate than the other two bonds, but also gives you the least sense of security with regard to a possible defaultThe bond of a well-established company that pays a rate of interest somewhere between the other two bondA tax-free bond, since minimizing taxes is your primary investment objective
23. When faced with a major financial decision, are you more concerned about the possible losses or the possible gains?

Always possible lossesUsually the possible lossesUsually the possible gainsAlways the possible gains
24. Imagine you were in a job where you could choose to be paid salary, commission or a mix of both. Which would you choose?

All salaryMainly salaryEqual mix of salary and commissionMainly commissionAll commission
25. Over three months in 2008 stocks lost more than 30%. If you owned a basket of stocks or a stock fund that lost over 30% in three months, I would......(Investors who owned stocks or stock funds during that period should select the answer that corresponds to your actual behavior).

Sell all of the remaining investmentSell a portion of the remaining investmentHold onto the investment and sell nothingBuy more of the investment
26. What degree of risk have you taken with your financial decisions in the past?

Very smallSmallMediumLargeVery large
27. What degree of risk are you currently prepared to take with your financial decisions?

Very smallSmallMediumLargeVery large
28. Investments can go up and down in value and experts often say you should be prepared to weather a downturn. By how much could the total value of all your investments go down before you would feel uncomfortable?

Any fall in value would make me feel uncomfortable10%20%33%50%More than 50%
29. Suppose you have saved $1 million for retirement in a diversified stock portfolio. By what percentage could the total value of your retirement assets drop before you would begin to think about selling your investments and going to cash?

A 10% drop (retirement assets drop $100,000 to a value of $900,000)A 20% drop (retirement assets drop $200,00 to a value of $800,000)A 30% drop (retirement assets drop $300,000 to a value of $700,000)A 50% drop (retirement assets drop $500,000 to a value of $500,000)
30. When it comes to investing in the stock and bond markets, I would describe myself as......

Very inexperiencedSomewhat inexperiencedSomewhat experiencedExperiencedVery experienced
31. What have you typically done in the past after significant decline in the stock market?

Always buy lower-risk assets (ie: money market or bonds)Mostly buy lower-risk assets (ie: money market or bonds)Mostly buy higher-risk assets (ie: stocks)Always buy higher-risk assets (ie: stocks)
Investor Profile

32. Thinking about your current financial situation, approximately what percentage of your personal and retirement savings and investments are in the following categories? Percentages should total 100%. Place a zero in the box for categories not selected.

	Percentage %
Cash, savings accounts, money market mutual funds or CDs
Fixed income investments, such as government, corporate or municipal bonds or bond funds
Equities, such as stocks, stock funds, direct business ownership or investment real estate (exclude primary residence)
Other, such as gold, commodities or collectibles or real asset funds

33. What is your household's approximate gross income before tax?

$0 - $50,000$51,000 - $100,000$101,000 - $250,000$251,000 - $500,000$501,000 - $1,000,000$1,000,000 +
34. Excluding your primary residence, what is your household's approximate net-worth?

$0 - $500,000$500,000 - $1,000,000$1,000,000 - $3,000,000$3,000,000- $5,000,000$5,000,000 - $10,000,000Greater than $10,000,000
35. When do you expect to use most of the money you are now accumulating in your investments?

Any time now, so a high level of liquidity is importantProbably 2 - 5 years from nowIn 6 - 10 years from nowProbably 11-20 or more years from now
36. My current and future sources of income are....(including salary, pension and social security).

Very unstableUnstableSomewhat stableStableVery stable
37. Over the next several years, you expect your annual income to:

Stay about the sameGrow moderatelyGrow substantiallyDecrease moderatleyDecrease substantially
Sources: Investment Risk Tolerance Assessment at the University of Missouri's Department of personal Financial Planning, Vanguard Funds, Fidelity Investments, FinaMetrica and Yahoo Finance.
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