Risk Profile Questionnaire

Please answer the following 12 questions as candidly as you can. When you answer the following questions, consider your answers in regards to your feelings toward your entire portfolio or only the assets managed by Yield Financial Advisors.

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

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Where are you in relation to retirement? The farther you are from retirement, the more risk you can take in your investing.

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

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

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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.

Option 1

You have little outside savings set aside, hence, preservation of principal is very important.

Option 2

You have reasonable savings set aside, and are willing to take moderate risk for moderate returns.

Option 3

Your have ample savings set aside (mortgage is paid off, own CD's, insurance, etc.) hence you feel comfortable taking larger risks for maximum return potential.

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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.

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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?

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?

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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?

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

Option 1

Holding cash/money market funds when the market goes up.

Option 2

Holding Stocks when the market goes down.

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

Option 1

Holding cash/money market funds when the market goes up.

Option 2

Holding Stocks when the market goes down.

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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.

Option 1

At least equal to inflation.

Option 2

Inflation plus 3% annually.

Option 3 

Inflation plus 4% annually.

Option 4

Inflation plus 5% annually.

Option 5 

Inflation plus 6% annually 

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