Determining Risk Tolerance

1. When will you need this money?

A. Less than 1 year ( 1 )
B. Within 5 years ( 2 )
C. 6-10 years ( 3 )
D. 11-20 years ( 4 )
E. 20+ years ( 5 )

2. When do you expect to retire?

A. I'm already retired ( 1 )
B. Within the next 5yrs ( 2 )
C. In 5-10yrs ( 3 )
D. In 10-15yr ( 4 )
E. In over 20yrs ( 5 )

3. What is your primary investment goal?

A. Preserve capital ( 1 )
B. Generate income ( 2 )
C. Moderate growth with some income ( 3 )
D. Long-term growth ( 4 )
E. Aggressive growth ( 5 )

4. How would you react if your portfolio dropped 10% in a month?

A. Sell everything ( 1 )
B. Sell some investments ( 2 )
C. Do nothing ( 3 )
D. Buy more ( 4 )
E. Be excited for buying opportunities ( 5 )

5. What portion of your total assets will this portfolio represent?

A. More than 75% ( )
B. 50-75% ( )
C. 25-50% ( )
D. 10-25% ( )
E. Less than 10% ( )

6. If you had to choose one of these historical outcomes for your portfolio over the next 10 years, which would you pick?

Portfolio A: Best Year +12%, Worst Year –5%, Average Annual Return 6% ( 1 )
Portfolio B: Best Year +22%, Worst Year –12%, Average Annual Return 8% ( 3 )
Portfolio C: Best Year +35%, Worst Year –25%, Average Annual Return 10% ( 5 )

7. When reviewing your investments, how often do you check performance?

A. Daily or multiple times a day ( 1 )
B. Weekly ( 2 )
C. Monthly ( 3 )
D. Quarterly ( 4 )
E. Once or twice a year ( 5 )

8. How would you feel if your portfolio lost 20% in a year?

A. Extremely anxious ( 1 )
B. Concerned ( 2 )
C. Uncomfortable but patient ( 3 )
D. Accepting ( 4 )
E. Unfazed ( 5 )

9. How would you describe your emotional reaction to market declines?

A. Extremely anxious – I lose sleep ( 1 )
B. Very worried ( 2 )
C. Somewhat concerned but I can cope ( 3 )
D. Mildly concerned ( 4 )
E. Calm – I see it as normal or an opportunity ( 5 )

10. What is your investment experience level?

A. None ( 1 )
B. Beginner ( 2 )
C. Intermediate ( 3 )
D. Advanced ( 4 )
E. Expert ( 5 )

11. How important is liquidity (access to cash) in your portfolio?

A. Extremely important ( 1 )
B. Very important ( 2 )
C. Somewhat important ( 3 )
D. Not very important ( 4 )
E. I have no need for cash for the foreseeable future ( 5 )

12. If your investments dropped 30% in a year, what would you do?

A. Sell everything ( 1 )
B. Sell some to reduce risk ( 2 )
C. Hold ( 3 )
D. Possibly Buy more ( 4 )
E. View it as a buying opportunity and invest more aggressively ( 5 )

13. How much of a drop in your portfolio would cause you serious concern?

A. Any loss at all ( 1 )
B. 2. 5% ( 2 )
C. 10% ( 3 )
D. 20% ( 4 )
E. 30%+ ( 5 )

14. You just inherited $500,000. What would you do with it today?

A. Put it all in cash or CDs ( 1 )
B. Mostly bonds and cash ( 2 )
C. Balanced mix of stocks and bonds ( 3 )
D. Mostly stocks and growth assets ( 4 )
E. 100% aggressive growth investments ( 5 )

15. Should the stock market perform poorly over the next decade, what would you expect from these investments?

A. To lose money in line with the market ( 5 )
B. To lose less than the market ( 4 )
C. To make a small gain ( 3 )
D. To make a modest gain ( 2 )
E. To be little effected by what happens in the stock market ( 1 )

Enter the total points for Questions 1 through 10.

Client’s Signature Date

Client’s Name (Print)

In the grid below, find your Risk Tolerance Score to determineyour recommended investment strategy and asset allocation.

Investor Profile

Score	Letter Code	Investment Strategy	Asset AllocationRange Estimates
0-14	A	Conservative	20%-45% Stock 40%-60% Bonds
15-34	B	Moderately Conservative	40%-60% Stock/Alts 30%-50% Bonds
35-50	C	Moderate	50%-75% Stock/Alts 25%-45% Bonds
51-74	D	Moderately Aggressive	65%-85% Stock/Alts 20%-35% Bonds
75-86	E	Aggressive	80%-90% Stock/Alts 10%-20% Bonds