Step 1 of 32 3% This questionnaire is designed to gauge your willingness to take on risk in your investment portfolio. These questions ignore any financial constraints that would influence your ability to take on risk. They only attempt to measure various dimensions of risk-taking including guarantees vs. probable gambles, choice of sure loss vs. sure gain, experience with and knowledge of risk, and comfort with risk. This approach differs from others in that it separates different components of risk into those that can be altered with education from those that may be outside of our control such as time horizon.This questionnaire is designed to gauge your willingness to take on risk in your investment portfolio. These questions ignore any financial constraints that would influence your ability to take on risk. They only attempt to measure various dimensions of risk-taking including guarantees vs. probable gambles, choice of sure loss vs. sure gain, experience with and knowledge of risk, and comfort with risk. This approach differs from others in that it separates different components of risk into those that can be altered with education from those that may be outside of our control such as time horizon.HiddenAdvisor Name First Last Willingness1. In general, how would your best friend describe you as a risk taker? A real gambler Willing to take risks after completing adequate research Cautious A real risk avoider 2. You are on a TV game show and can choose from the following. Which one would you take? $10,000 in cash A 50% chance at winning $50,000 A 25% chance at winning $100,000 A 5% chance at winning $1,000,000 3. 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 vacation and recover 75% of the cost Take a much more modest vacation at 50% of the original's cost Go as scheduled, reasoning that you need the time to prepare for a job search Extend your vacation, because this might be your last chance to travel first-class 4. If you unexpectedly received $50,000 to invest, what would you do? Deposit it in a bank account, money market account, or an annuity Invest it in safe, high quality bonds or bond mutual funds Invest it in stocks or stock mutual funds or crypto currency 5. In terms of experience, how comfortable are you investing in stocks or stock mutual funds? Not at all comfortable Somewhat comfortable Very comfortable 6. When you think of the word “risk”, which of the following words comes to mind first? Loss Uncertainty Opportunity Thrill 7. Some experts are predicting prices of assets such as gold, jewels, collectibles and real estate (hard assets) to increase in value. Simultaneously, bond prices may fall, but experts tend to agree that government bonds are relatively safe. Most of your investment assets are now in high interest government bonds. What would you do? Hold the bonds Sell the bonds, put half the proceeds into money market accounts and the other half into hard assets Sell the bonds and put the total proceeds into hard assets Sell the bonds, put all the money into hard assets and borrow additional money to buy more 8. Given the best and worst case returns of the four investment choices below, which would you prefer? $2,000 gain best case; $0 gain/loss worst case $8,000 gain best case; $2,000 loss worst case $26,000 gain best case; $8,000 loss worst case $48,000 gain best case; $24,000 loss worst case 9. In addition to whatever you own, you have been given $100,000. You are now asked to choose between two options. Which would you choose? A sure gain of $50,000 A 50% chance to gain $100,000 and a 50% chance to gain nothing 10. In addition to whatever you own, you have been given $200,000. You are now asked to choose between two options. Which would you choose? A sure loss of $50,000 A 50% chance to lose $100,000 and a 50% chance to lose nothing 11. Suppose a relative left you an inheritance of $100,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select? A savings account, money market account or an annuity A mutual fund that owns both stocks and bonds A portfolio of 15 common stocks Commodities like gold, silver and oil 12. If you had to invest $200,000, which of the following investment choices would you find most appealing? 60% in low-risk investments, 30% in medium-risk investments, 10% in high-risk investments 30% in low-risk investments, 40% in medium-risk investments, 30% in high-risk investments 10% in low-risk investments, 40% in medium-risk investments, 50% in high-risk investments 13. 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. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only 20%. If you had the money, how much would you invest? Nothing One month’s salary Three months’ salary Six months’ salary Aditional Willingness Assessment Questions14. In your investing experience, how do you prioritize risk versus reward in a trade-off between the two? Maximize return Mostly return-focused Mix of the two Mostly focused on principal protection Guaranteed principal protection 15. Overall, how risky do you percieve a diversified investment in the stock market to be? Very safe Somewhat safe Neutral Somewhat risky Very risky 16. In your opinion, what level of experience do you have with investing? None Beginner Moderate Advanced 17. During past periods of market volatility and losses, what actions have you taken in your investment accounts? Bought more, increased contributions, and/or increased the level of risk in my investments Did nothing, maintained contributions, and/or maintained the level of risk in my investments Sold my investments, reduced contributions, and/or decreased the level of risk in my investments Ability1. Are you current Employeed? Yes No 2. How many years until you start taking distributions from your retirment investments? I am currenting taking distributions 1-5 years 5-10 years 10+ years 3. If current or future distributions are not sufficient to cover your desired retirement income, how willing would you be to continue working? Very Willing Somewhat Willing Not Willing 4. If current or projected distributions are not sufficient to cover your desired retirement income, how willing would you be to reduce your desired retirement income/lifestyle? Very Willing Somewhat Willing Not Willing 5. What percent of your monthly retirement spending do you expect to come from fixed or guarenteed sources (Social Security, Pensions, Annuities, etc.) 0% - 30% 31% - 70% 70+% 6. What percent of your current investments do you anticipate withdrawing each year during retirement? Don't Know 5+% 3% - 5% 0% - 2% Financial Literacy7. Suppose you have $100 in a savings account that is earning 2% interest per year. After five years, with no withdrawals or deposits, how much money would be in the account? More than $102 Exactly $102 Less than $102 Don't know 8. Imagine that the interest rate on your savings account is 1% per year and inflation is 2% per year. After one year, would the money in the account buy more, exactly the same, or fewer goods than it would today? More Same Less Don't know 9. If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship? Rise Fall Stay the same No relationship Don't know 10. True or false: A 15-year mortgage requires higher monthly payments than a 30-year mortgage but the total interest paid over the life of the 15-year loan will be less. TRUE FALSE Don't know 11. True or false: Buying a single company's stock usually provides a safer return than buying a stock mutual fund does. TRUE FALSE Don't know 12. Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn't make any payments on the loan, approximately how many years would it take for the amount that you owed to double? Less than 2 years 2 to 4 years 5 to 9 years 10 or more years Don't know NeedThe Combined Total Above Must Equal 100%What % You Have RemainingIf you could obtain a 3-5% rate of return with no risk of loss, how much money would you put in this investment bucket?Please enter a number from 1 to 100.If you could obtain a 5-7% rate of return with lower risk investments, how much money would you put in this investment bucket?Please enter a number from 1 to 100.If you could obtain an 8-10% rate of return with higher risk investments, how much money would you put in this investment bucket?Please enter a number from 1 to 100.HiddenNeed Calculation Name First Last PhoneEmail HiddenMyRiskIQ Scoring SectionWillingness Section Risk: Low Risk: Moderate Risk: High HiddenScoreAbility Section Risk: Low Risk: Moderate Risk: High HiddenScoreNeed Section Risk: Low Risk: Moderate Risk: High HiddenScoreHiddenMyRiskIQ ScoreHiddenScore
