Q-7RiskToleranceQuestionnaire-Advisor.docVIP

Risk Tolerance Questionnaire Circle the response that best describes you. Remember that risk tolerance is largely subjective, so there is no right or wrong answer. Life Stage 1. What is your current age? a) 65 or older. b) 60 to 64. c) 55 to 59. d) 50 to 54. e) Under 50. 2. When do you expect to need to withdraw cash from your investment portfolio? a) In less than 1 year. b) Within 1 to 2 years. c) Within 2 to 5 years. d) Within 5 to 10 years. e) Not for at least 10 years. Financial Resources 3. How many months of current living expenses could you cover with your present savings and liquid, short-term investments, before you would have to draw on your investment portfolio? a) Less than 3 months. b) 3 to 6 months. c) 6 to 12 months. d) More than 12 months. 4. Over the next few years, what do you expect will happen to your income? a) It will probably decrease substantially. b) It will probably decrease slightly. c) It will probably stay the same. d) It will probably increase slightly. e) It will probably increase substantially. 5. What percentage of your gross annual income have you been able to save in recent years? a) None. b) 1 to 5%. c) 5 to 10% d) 10 to 15% e) more than 15% 6. Over the next few years, what do you expect will happen to your rate of savings? a) It will probably decrease substantially. b) It will probably decrease slightly. c) It will probably stay the same. d) It will probably increase slightly. e) It will probably increase substantially. Emotional Risk Tolerance 7. What are your return expectations for your portfolio? a) I don’t care if my portfolio keeps pace with inflation; I just want to preserve my capital. b) My return should keep pace with inflation, with minimum volatility. c) My return should be slightly more than inflation, with only moderate volatility. d) My return should significantly exceed inflation, even if this could mean significant volatility. 8. How would you characte