Evaluate Your Risk Tolerance

The following series of questions are designed to help you and your financial professional determine your risk tolerance. It is being made available for your independent use and is not intended to provide investment advice. We cannot and do not guarantee the applicability or accuracy of the questions with respect to their ability to predict your individual circumstance.

Your age, ability to tolerate risk and several other factors are used to calculate a hypothetical mix of global equities, global fixed income, real assets and cash. All examples are for illustrative purposes only and are not representative of a particular product or strategy. Actual results may vary. There can be no assurance that any portfolio will meet or exceed its investment objective.

1. What is your current age group?

 2. How would you describe your investment experience?
I have little or no experience.
I have some experience investing in either mutual funds or individual stocks and bonds.
I am an experienced investor and have a good understanding of how financial markets work.
 

 3. Which statement best states your outlook for your future annual income from all other sources (salary, Social Security, retirement, pension plans, rental property income, etc.)?
My annual income is stable and I expect it to increase faster than the rate of inflation over the long term.
My annual income is stable and I expect it to keep pace with inflation.
My annual income is stable, but I do not expect it to keep up with inflation.
My annual income varies widely year-to-year.
My annual income is expected to decrease substantially and permanently within the next 5 years.

 4. How long could you cover monthly living expenses with cash and other investments currently on hand?
No more than a month
Up to 3 months
4-6 months 
7-12 months
More than 12 months 

 5. When do you plan to begin withdrawing significant money from this investment?
Immediately (0 to 2 years)
Not now, but within 5 years
In 5 to 15 years
Not for at least 15 years
I do not intend to use these funds, but rather plan to leave to my heirs/beneficiaries.

 6. How would you respond if the U.S. stock market suddenly dropped 25%? 
I would sell all of my stock investments and seek the safety of cash or Certificates of Deposit.
I would sell most of my stock investments and move the funds to a more conservative investment strategy, such as cash or bonds.
I would sell about half of my stock investments and move the funds to a more conservative investment strategy, such as cash or bonds.
I would worry, but not make any substantial changes to my investment mix.
I would put more into stocks.
I do not know what I would do.

 7. What is your primary investment objective?
Preserving savings/assets
Current income
Growth of assets with some current income
Growth of assets
Maximum growth of assets

 8. Inflation erodes purchasing power. How important is it for your investment returns to outpace inflation?
Not at all important
Not very important
Somewhat important
Very important
Extremely important

 9. I would be willing to risk short-term loss in my investments in exchange for a higher potential return over the long term.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree

 10. The chart below shows possible scenarios for the investment of $100,000 over a 5-year period. Of the hypothetical portfolios, the range of returns increases as risk increases. Which scenario are you most comfortable with?

Portfolio A (worst case: -5%; best case: 10%)
Portfolio B (worst case: -7%; best case: 14%)
Portfolio C (worst case: -10%; best case: 20%)
Portfolio D (worst case: -15%; best case: 26%)