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Risk Tolerance Questionnaire Name Date Completed A deep understanding of what you re investing for how long you have to meet your goals and your comfort level with risk are all part of determining the right mix of investments for you And knowing how you may react to the ups and downs of the market is important because too often the reactions to swings in value not the fluctuations themselves have the biggest impact on successful long term investing Your answers to the following questions help us better understand your comfort level with risk In addition we ll consider How much risk you can take based on your investment time horizon and other factors How much risk may be appropriate for you to take to reach your long term financial goals A clear understanding of these can help you avoid what may be the biggest risk of all not achieving your long term financial goals Understanding Your Risk Tolerance 1 How concerned are you about inflation Answer n Investing involves trade offs and prioritizing your goals Stocks typically have more volatility larger swings in value than bonds but offer greater growth potential to keep up with inflation The value of cash and fixed income may not change as much over time but typically these investments have higher inflation risk the risk that your money will buy less in the future Select the statement you most agree with regarding volatility and inflation A My goal is to minimize swings in portfolio value even if growth does not keep pace with inflation B My goal is for growth to at least keep pace with inflation with the risk of modest swings in portfolio value C M y goal is for growth to exceed inflation with the risk of modest to larger swings in portfolio value 2 Which statement best describes your personal investment philosophy A Income I want a portfolio designed to generate more consistent but most likely lower returns year to year with a primary focus on current income I want a low level of volatility and risk of loss if possible B Growth and Income I prefer a portfolio that balances my growth objectives with my income needs I prefer a portfolio with modest amounts of portfolio volatility and risk of loss over time SLT 2083L A EXP 31 MAR 2018 PAGE 1 OF 3 2017 EDWARD D JONES CO L P ALL RIGHTS RESERVED D M y goal is for growth to significantly exceed inflation with the risk of larger swings in portfolio value Answer n C Growth I am willing to accept investments with a higher degree of volatility and risk of loss in exchange for the potential for achieving higher average returns over time
Micki Evans
6/22/2017
B
B
Risk Tolerance Questionnaire 3 How comfortable are you with volatility The chart shows the potential range in values during a given year for three hypothetical portfolios based on an initial value of 100 000 In general which portfolio most aligns with your return objectives and comfort with volatility Answer n 160 000 140 000 120 000 135 000 125 000 115 000 100 000 90 000 80 000 80 000 70 000 60 000 Portfolio A Lower volatility lower return potential Portfolio B Moderate volatility moderate return potential Portfolio C Higher volatility higher return potential 4 In general which of the following statements best describes your thoughts regarding the trade off between returns and volatility Answer n A When investing I am more B The potential for loss is of equal C I am most focused on the return concerned about my portfolio losing value The return achieved is of secondary importance importance as the return achieved potential and the potential for losses is of secondary importance 5 In general there have been several periods in market history in which the value of the market has dropped 25 or more in a year If the value of your portfolio fell from 200 000 to 150 000 25 in one year how would you react Answer A I would move my money B I would be concerned to different investments to reduce the potential for future losses C I would leave my money about the portfolio and would consider moving into different investments if the losses continued where it is and continue according to my longterm strategy n D I would leave my money where it is and consider investing more 6 The table below shows hypothetical long term returns as well as possible gains and losses in any one year for three portfolios Given your return objectives and tolerance for volatility which portfolio would you be most willing to invest in Answer n Long term Average Return Possible Gain in One year Period Possible Loss in One year Period Portfolio A 4 15 10 Portfolio B 6 25 20 Portfolio C 8 35 30 SLT 2083L A EXP 31 MAR 2018 PAGE 1 OF 3 2017 EDWARD D JONES CO L P ALL RIGHTS RESERVED SLT 2083L A EXP 31 MAR 2018 PAGE 1 OF 3 2017 EDWARD D JONES CO L P ALL RIGHTS RESERVED Name
B
B
B
B
Risk Tolerance Questionnaire Determining Your Risk Tolerance Please enter the answers from the previous six questions into the corresponding boxes on the right and total the points The highest points are awarded to the most aggressive answer choice The risk tolerance score ranges from zero most conservative to 100 most aggressive Interpreting your results Take the risk tolerance score totaled in the first table and locate it in the second table This will help identify your overall comfort level with risk Based on your risk tolerance and time horizon we recommend a Portfolio Objective for your goals such as Retirement and for each account you hold for that goal such as your IRA Below we highlight our guidance for a retirement goal which should serve as a starting point as we personalize an investment strategy for your retirement Since each of your goals may have a different time horizon the recommended Portfolio Objective for each goal may vary We should also discuss other factors such as specific purposes for an account which could also cause your Portfolio Objective to vary Your Answer Answer Value 1 A 0 B 5 C 12 2 A 0 B 8 C 16 3 A 0 B 8 C 16 4 A 0 B 8 C 17 5 A 0 B 6 C 12 6 A 0 B 8 C 17 D 17 D 17 Total Risk Tolerance Scale 80 100 60 79 40 59 19 39 0 18 High Medium to High Medium Low to Medium Low Portfolio Objective Guidance Table Retirement Goal Retirement Time Horizon Accumulation Years Preparing for Retirement Investor Risk Tolerance 26 Years Until Retirement 16 25 Years Until Retirement Early Investing Years Good Earnings Years Distribution Years Living in Retirement Expect to Spend 15 Years or Less Until More than 10 Years in Retirement Retirement Age 80 or Older and or Expect to Spend 10 Years or Less in Retirement High Income and Savings Years Early Retirement Years Late Retirement Years High Growth Focus Growth Focus Growth Focus Balanced toward Growth Balanced toward Growth Medium to High Growth Focus Growth Focus Growth Focus Balanced toward Growth Balanced Growth Income Medium Growth Focus Growth Focus Balanced toward Growth Balanced Growth Income Balanced toward Income Low to Medium Growth Focus Balanced toward Growth Balanced toward Growth Balanced Growth Income Balanced toward Income Low Balanced toward Growth Balanced Growth Income Balanced Growth Income Balanced toward Income Income Focus Note Age 70 is the oldest possible retirement age for Portfolio Objective guidance purposes SLT 2083L A EXP 31 MAR 2018 PAGE 1 OF 3 2017 EDWARD D JONES CO L P ALL RIGHTS RESERVED SLT 2083L A EXP 31 MAR 2018 PAGE 1 OF 3 2017 EDWARD D JONES CO L P ALL RIGHTS RESERVED Name
B
B
B
B
B
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