Home – Risk Tolerance Questionnaire
Risk Tolerance Questionnaire
QUESTION 1
What is the primary objective of your investment portfolio?
QUESTION 2
How long do you expect to hold this portfolio before liquidating all or most of it?
QUESTION 3
I am seeking to maximize returns as my primary objective. In other words, I am willing to accept more risk in exchange for potentially higher returns.
QUESTION 4
If you invested $1,000,000 in a diversified portfolio of multiple asset classes today and it was losing money, at what point would you consider selling to cash?
QUESTION 5
How would you classify yourself as an investor?
QUESTION 6
If, due to a general market correction, one of your investments had lost 15% of its value after you bought it, what would you do?
QUESTION 7
Below is a list of different portfolio compositions and their returns from 1926-2013*. Of the list below, which portfolio would best suit you?
QUESTION 8
“I will need a monthly income from my investments within the next 2 years.” This is:
QUESTION 9
Growth in an investment is:
QUESTION 10
Safety of Principal is how important to you? Which statement best describes you?
TOTAL SCORE
Match your total score with one of the investment objectives listed below. If your score is near the top or bottom of an Adjusted Total Range, you may want to examine the next or previous objective to determine which represents your needs more accurately.
| Score | Portfolio Model | Equities | Fixed Income | Real Estate | Alternatives | Cash, & Equivalents |
|---|---|---|---|---|---|---|
| 45-50 | Highly Aggressive (#1) | 55-65% | 7-17% | 7-17% | 7-17% | 2-6% |
| 38-44 | Aggressive (#2) | 50-60% | 13-23% | 7-15% | 7-15% | 2-6% |
| 31-37 | Moderately Aggressive (#3) | 45-55% | 20-30% | 6-14% | 6-14% | 3-7% |
| 24-30 | Moderate (#4) | 37-47% | 27-39% | 6-12% | 6-12% | 3-7% |
| 17-23 | Conservative (#5) | 32-40% | 35-47% | 5-9% | 5-9% | 5-13% |
| 10-16 | Ultra Conservative (#6) | 25-31% | 39-59% | 4-8% | 4-8% | 6-17% |
| Score | 45-50 |
|---|---|
| Portfolio Model | Highly Aggressive (#1) |
| Equities | 55-65% |
| Fixed Income | 7-17% |
| Real Estate | 7-17% |
| Alternatives | 7-17% |
| Cash, & Equivalents | 2-6% |
| Score | 38-44 |
|---|---|
| Portfolio Model | Aggressive (#2) |
| Equities | 50-60% |
| Fixed Income | 13-23% |
| Real Estate | 7-15% |
| Alternatives | 7-15% |
| Cash, & Equivalents | 3-7% |
| Score | 31-37 |
|---|---|
| Portfolio Model | Moderately Aggressive (#3) |
| Equities | 45-55% |
| Fixed Income | 20-30% |
| Real Estate | 6-14% |
| Alternatives | 6-14% |
| Cash, & Equivalents | 3-7% |
| Score | 24-30 |
|---|---|
| Portfolio Model | Moderate (#4) |
| Equities | 37-47% |
| Fixed Income | 27-39% |
| Real Estate | 6-12% |
| Alternatives | 6-12% |
| Cash, & Equivalents | 4-10% |
| Score | 17-23 |
|---|---|
| Portfolio Model | Conservative (#5) |
| Equities | 32-40% |
| Fixed Income | 35-47% |
| Real Estate | 5-9% |
| Alternatives | 5-9% |
| Cash, & Equivalents | 5-13% |
| Score | 10-16 |
|---|---|
| Portfolio Model | Ultra Conservative (#6) |
| Equities | 25-31% |
| Fixed Income | 39-59% |
| Real Estate | 4-8% |
| Alternatives | 4-8% |
| Cash, & Equivalents | 6-17% |
Investment Model Descriptions
#1 – Highly Aggressive
Model Objective
Provide potential long-term growth with emphasis on attempting to maximize total return. May be appropriate for long-term investors who can tolerate high levels of market volatility or have more than 20 years to retirement.
Model Strategy
Invests primarily in domestic and international aggressive equities with a small allocation to fixed income/interest bearing instruments. Generally can be compared to a 90/10 equity to fixed income mix.
#2 – Aggressive
Model Objective
Provide potential long-term growth with emphasis on attempting to maximize total return. May be appropriate for long-term investors who can tolerate market volatility or plan on retiring in the next 10-20 years.
Model Strategy
Invests primarily in domestic and international equities with a smaller allocation to fixed income/interest bearing instruments. Generally can be compared to a 80/20 equity to fixed income mix.
#3 – Moderately Aggressive
Model Objective
Provide potential long-term growth with emphasis on total return with reduced volatility. May be appropriate for long-term investors who can tolerate market volatility, yet seek a balanced mix of stocks and bonds or plan on retiring in the next 10-15 years.
Model Strategy
Invests primarily in U. S. and international equities with a diversified mix of fixed income securities, including short and long term corporates and international bonds. Generally can be compared to a 70/30 equity to fixed income mix.
#4 – Moderate
Model Objective
Provide potential capital preservation with moderate income and growth potential over time with diminished risk. May be appropriate for investors seeking income stability and preservation of capital, are retired or planning to retire within 5-10 years.
Model Strategy
Invests in a diversified mix of fixed income securities, including short and long term corporates, international bonds, and some exposure to U. S. and international equities. Generally can be compared to a 60/40 equity to fixed income mix.
#5 – Conservative
Model Objective
Primarily provides potential capital preservation with moderate income and some growth potential over time with minimal risk. May be appropriate for investors seeking income stability and preservation of capital, are retired or are within 5 years of retirement.
Model Strategy
Invests primarily in interest bearing mutual funds with some exposure to domestic and international equity markets. Generally can be compared to a 50/50 equity to fixed income mix.
* Stock market returns were determined from the S&P 90 index from 1926 through March 3, 1957, the S&P 500 index from March 4, 1957 through 1974, the Wilshire 5000 index from 1975 through April 22, 2005, the MSCI US Broad Market Index from April 23, 2005 through June 2, 2013 and the CRSP US Total Market index thereafter. For U.S. bond market returns, we use the Standard & Poor’s High Grade Corporate Index from 1926 through 1968, the Citigroup High Grade Index from 1969 through 1972, the Lehman Brothers U.S. Long Credit AA Index from 1973 through 1975, the Barclays U.S. Aggregate Bond Index from 1976 through 2009, and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafter. Data provided by vanguard.com.
