Risk Tolerance Questionnaire

Answer the questions on the following pages, clicking the reply that most closely represents your situation. As you fill out the questionniare keep your primary financial goal in mind, such as retirement. Couples can either complete the questionnaire together or separately. The Risk Tolerance Score is just one of many important factors that contribute to determining your asset allocation and investment strategy.


  1. 1/ How many years until you need to withdraw approximately 20% of your investments (for retired or retiring investors a rule of thumb would be to withdraw no more than 4% per year, so it would take 5 years after the draw starts to withdraw a total of 20%)...

    A. Less than 1 year D. 6–10 years
    B. 1–2 years E. 11–15 years
    C. 3–5 years F. More than 15 years
  2. 2/ As I withdraw money from these investments, I plan to withdraw it over a period of...

    A. 2 years or less D. 11–15 years
    B. 3–5 years E. More than 15 years
    C. 6–10 years  
  3. 3/ When making a long-term investment, I plan to keep the money invested for...

    A. 1–2 years D. 7–8 years
    B. 3–4 years E. More than 8 years
    C. 5–6 years  
  4. 4/ From September 2008 through November 2008, stocks lost more than 31% of their value.If I owned a stock investment that lost about 31% of its value in three months, I would . . .(If you owned stocks during this period, please select the answer that matches your actionsat that time.)

    A. Sell all of the remaining investment  
    B. Sell some of the remaining investment  
    C. Hold on to the investment and sell nothing  
    D. Buy more of the investment  
  5. 5/ Generally, I prefer an investment with little or no ups or downs in value, and I am willingto accept the lower returns these investments may make.

    A. I strongly disagree D. I agree
    B. I disagree E. I strongly agree
    C. I somewhat agree  
  6. 6/ When the market goes down, I tend to sell some of my riskier investments and put themoney in safer investments.

    A. I strongly disagree D. I agree
    B. I disagree E. I strongly agree
    C. I somewhat agree  
  7. 7/ Based only on a brief conversation with a friend, coworker, or relative, I would invest ina mutual fund.

    A. I strongly disagree D. I agree
    B. I disagree E. I strongly agree
    C. I somewhat agree  
  8. 8/ From September 2008 through October 2008, bonds lost nearly 4% of their value. If Iowned a bond investment that lost almost 4% of its value in two months, I would...(If you owned bonds during this period, please select the answer that matches youractions at that time.)

    A. Sell all of the remaining investment  
    B. Sell some of the remaining investment  
    C. Hold on to the investment and sell nothing  
    D. Buy more of the investment  
  9. 9/ The chart to the right shows the highestone-year loss and the highest one-year gainon three different hypothetical investmentsof $10,000.* Given the potential gain or lossin any one year, I would invest my money in...

    A. Investment A
    B. Investment B
    C. Investment C

    *The maximum gain or loss on an investment is impossible to predict. The ranges shown in the chart are hypothetical and are designed solely to gauge an investor's risk tolerance.

  10. 10/ My current and future income sources (such as salary, Social Security, pension) are...

    A. Very unstable D. Stable
    B. Unstable E. Very stable
    C. Somewhat stable  
  11. 11/ When it comes to investing in stock or bond funds (or individual stocks or bonds),I would describe myself as...

    A. Very inexperienced D. Experienced
    B. Somewhat inexperienced E. Very experienced
    C. Somewhat experienced  
  12. Scoring the questionnaire

    In the table below, each of your answers is automatically assigned a numerical value. For example, if you answered “C” to question 1, your score for that question is 4 points. Your overall score appears at the bottom of the Points column.

    Points
    A B C D E F
    1 0 1 4 7 12 17
    2 0 1 3 5 8 -
    3 0 1 3 5 7 -
    4 1 3 5 6 - -
    5 6 5 3 1 0 -
    6 5 4 3 2 1 -
    7 5 4 3 2 1 -
    8 1 3 5 6 - -
    9 1 3 5 - - -
    10 1 2 3 4 5 -
    11 1 2 3 4 5 -
    Total:

Use your score to find your suggested investment mix on the next page.

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