Risk Tolerance

1. When do you anticipate needing these funds?

A. Immediately B. Within five years C. 6-10 years D. 11-20 years E. 20+ years

2. Do you foresee any major expenses that might cause you to make withdrawals from this investment before the time mentioned previously?

A. No, probably not B. Maybe, but not for at least 15 years C. Yes, probably within 10 years D. Yes, probably within 5-10 years E. Yes, probably in less than 5 years

3. What is your goal for this investment?

A. To grow aggressively B. To grow significantly C. To grow moderately D. To grow with caution E. To avoid losing money

4. Should the equity market perform poorly over the next decade, what would you expect from this investment?

A. To lose money B. To make very little or nothing C. To make a little gain D. To make a modest gain E. To be little affected by what happens in the stock market

5. Which of the following statements best describes your attitude over a three month time frame with above average market volatility?

A. I’d have a hard time stomaching any losses B. I can only tolerate small short-term losses C. If I suffered a loss of greater than 10% I’d get concerned D. I wouldn’t worry too much about losses in that short of a time frame E. One calendar quarter means nothing to me.

6. What level of decline would you be willing to tolerate over 5 years?

A. 5% Loss B. 10% Loss C. 15% Loss D. 20% Loss E. 25% Loss

7. When do you expect to retire?

A. I am already retired B. Within the next 5 years C. In the next 5-15 years D. In more than 15 years

8. Like most investments, the value of this account may fluctuate over time. Hypothetically, if you invested $1,000,000 and it was performing in line with world markets, at what point would you sell?

A. I would not sell. B. I would sell when the value reached $900,000 C. I would sell when the value reached $800,000 D. I would sell when the value reached was less than $800,000

9. If you needed $10,000 due to an unexpected financial obligation, would you need to liquidate a portion of this account?

A. No. I have several other sources of liquid assets that I would use first B. Probably not. I have several other sources of liquid assets that I would likely utilize C. Maybe. I do have other sources of liquid assets but this is my primary source. D. Yes. This is my only source of liquid assets

10.Which of the following statements best describes what your reaction would be if the value of your portfolio suddenly declined 15%?

A. I would be very concerned because I cannot accept a decline in the value of my portfolio. B. I invest for long-term growth but would be concerned about even a temporary decline. C. If the amount of income I received was unaffected, it would not bother me. D. I invest for long-term growth and accept temporary declines due to market fluctuations.

Determining Risk Tolerance

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