Risk Profile Questionnaire

Let's get to know you a little bit.

Please answer the following 14 questions as candidly as you can. 

1-  How many years can you let your money grow before you will need to start significant withdrawals?  

(This is an important indicator of your financial ability to ride out down-cycles).

If the working time frame for your investment portfolio is... 

2-  Where are you in relation to retirement? The farther you are from retirement, the more risk you can take in your investing. If the number of years between now and your retirement is...

3-  How important is current income to you in the near term? Do you depend on income from your investment portfolio for living expenses?

If current income is... 

4-  Take a look at your total financial position and the cushion (assets you have outside of your investment portfolio for emergencies) you have set aside. This will help you decide how much risk you should prudently take in your investing. Select the option that best describes you.

5-  What is your planned cash flow into and out of your investment portfolio over the next 3-5 years? Do you plan to contribute regularly to your investment portfolio, or do you intend to take out more than you put in? Negative cash flow (withdrawing principal) would suggest a low risk tolerance, while positive cash flow, (adding money on a regular basis) would tend to allow for some short-term volatility in the pursuit of higher returns.

If your plans are to... 

6-  Although it's difficult to plan for the unexpected, are there any special circumstances you can envision (college tuition, home purchase, retirement, extended travel, medical, etc) outside your usual contributions and withdrawals, that might necessitate the immediate liquidation of a major portion of your portfolio over the next 3-5 years?

If you can envision... 

7-  Give us your personal feelings about investment losses, and how willing are you to tolerate losses emotionally, by rating your risk tolerance. Which one of the risk options do you consider yourself?

8-  Which of these unattractive events would you prefer, if one had to occur?

9-  When saving for the future most people desire a return equal to or above inflation. However, historically the more return above the inflation rate an investor expects, the more market volatility they had to endure. Listed below are target rates of return above inflation with accompanying volatility that the investor would have experienced over an investment cycle of 30 years. Please select the return/volatility, which most closely matches your goals. Inflation has averaged approximately 4% over the past 30 years.

10-  Pretend you have a 25% loss in a mutual fund over the last year due to a general market decline (not poor fund management). 

What would you do now?

11-  Which of these unattractive events would you prefer, if one had to occur?

12-  If you were faced with the following three alternatives, which would you choose?

(Short-term = 1 year/Long-term = 5 years or longer)

13- What percent would the market have to decline before you would hit the panic button on your investments in a quarterly time frame, and say sell everything?

14- What percent would the market have to decline before you would hit the panic button on your investments in an annual time frame, and say sell everything?

© 2019 Yield Financial Advisors - All Rights Reserved

Call an Advisor Now
214-937-9905
  • Black Facebook Icon
  • Black LinkedIn Icon