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...

1-2 years

3-5 years

6-10 years

More than 10 years

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...

Critical

Needed to a large degree

Needed to a minor extent

Not important

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.

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

You have reasonable savings set aside, ad are willing to take moderate risk for moderate return

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

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...

Withdraw money on a continuing basis

Niether add nor withdraw money

Add new money on a continuing basis

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...

Full portfolio could be liquidated

Major liquidations

Some small liquidations

No liquidations

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?

Holding cash/money market funds when the market goes up

Holding stocks when the market goes down

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?

Sell all my shares of the fund

Sell some of the shares of the fund

Hold onto my shares

Buy mores shares in the fund

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

Selling a stock and seeing it immediately increase in value

Buying a stock and having it immediately decrease in value

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

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

Consistent short-term returns, even though long-term returns may be lower

No preference

Higher- long-term returns, even though returns vary greatly over the short-term

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?