Risk Tolerance Assessment

What Is Risk Tolerance?

Risk tolerance is the degree of variability in investment returns that you are willing to withstand in your financial planning. Risk tolerance is an important component in investing. You should have a realistic understanding of your ability and willingness to stomach large swings in the value of your investments.

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* 1. Contact Information

Full Name *

Address

Address 2

City/Town

State/Province

ZIP/Postal Code

Email Address *

Phone Number *

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* 2. What is the main goal for your investments?

Preserve the assets I currently have

Safely generate income from my investments

Generate income, while also pursuing capital appreciation

Steadily grow my assets

Aggressively grow my assets

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* 3. I expect to pull money from my investments in:

Less than 1 year

1-4 years

5-10 years

11-20 years

Over 20 years

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* 4. Select your current net worth (excluding your primary residence):

Under $100K

$100K-500K

$500K-1M

$1M-3M

Over $3M

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* 5. Please indicate your current annual household income:

Under $75,000

$75,001 - $125,000

$125,001 - $200,000

$200,001 - $350,000

$350,000+

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* 6. Please select the most complex investment you have owned, or would be comfortable owning:

Money Market/CDs

Mutual Funds/ETFs

Individual Stocks or Bonds

Hard Assets (gold, art, etc)

Options, Futures, or Unlisted Securities

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* 7. Which best describes your tolerance to risk?

I seek stable investments to preserve my principal

I pursue modest increases in my investments, with low risk of loss

I aim for investment growth, accepting moderate risk of loss

I seek above-average growth in my investments, accepting above average risk of loss

I reach for maximum returns, accepting significant risk of loss

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* 8. Imagine that an investment you own lost 30% of its value in 3 days. What would you do?

I don't know

Sell all of my shares

Sell a portion of my shares

Do nothing

Buy more shares

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* 9. You make an investment, planning to hold it for 5 years. It then loses 20% in its first year. How do you react?

I would sell my investment because of my concerns

I would consider selling part of my investment

I would wait to see how it continues to perform

I wouldn't sell my investment, but would be concerned

I would buy more of the investment because of the discount

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* 10. Suppose the stock market performs unusually poorly over the next decade, what would you expect from your investments?

To be little affected

To make a modest gain

To eke out a little gain

To make very little or nothing

To lose money

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* 11. Which of these statements would best describe your attitude about the next three months' performance of your investments?

I'd have a hard time stomaching any losses

I can only tolerate small short-term losses

If I suffered a loss of greater than 10%, I'd be concerned

I wouldn't worry about losses in that time frame

Who cares? One calendar quarter means nothing