5100 Thimsen Ave Ste 228 Minnetonka, MN 55345 Phone: (612) 247-1621 Fax: 612-861-2123
Who we Support: YOU
Individuals and Business Investors like You
What's Your Risk Tolerance?
1)
When do you expect to start withdrawing your Retirement Savings?
a) immediately
b) 2 years
c) 3-4 years
d) 5-7 years
e) 8-10 years
f) more than 10 years
2)
Which of the following choices best reflects your attitude toward inflation and risk?
a) My main goal is to avoid loss, even though I may only keep pace with inflation.
b) My main goal is to earn slightly more than inflation, while taking on a low level of risk.
c) My main goal is to increase my portfolio's value. Therefore, I am willing to accept short-term losses, but I am not comfortable with extreme performance shifts that may be experienced in the most aggressive investment options.
d) My main goal is to maximize my portfolio value, and I am willing to take on more extreme levels of risk and performance shifts in my portfolio to do so.
3)
Investing involves a trade-off between risk and return. Which statement best describes your investment goals?
a) Protect the value of my account. In order to minimize the chance for loss, I am willing to accept the lower long-term returns provided by conservative investments.
b) Keep risk to a minimum while trying to achieve slightly higher returns than the returns provided by investments that are more conservative.
c) Focus more on the long-term investment returns. Long-Term growth is equally as important as managing portfolio risk.
d) Maximize long-term investment returns. I am willing to accept large and sometimes dramatic short-term fluctuations in the value of my investments.
4)
Historically, markets have experienced downturns, both short-term and prolonged, followed by market recoveries. Suppose you owned a well-diversified portfolio that fell by 20% (i.e. $1,000 initial investment would now be worth $800) over a short period, consistent with the overall market. Assuming you still have 10 years until you begin withdrawals, how would you react?
a) I would not change my portfolio.
b) I would wait at least one year before changing to options that are more conservative.
c) I would wait at least three months before changing to options that are more conservative.
d) I would immediately change to options that are more conservative.
5)
The hypothetical best and worst results of five sample portfolios over a one-year holding period. Note that the portfolio with the highest upside also has the largest downside.
Which of these portfolios would you prefer to hold?
a) + 27 and potential for -32
b) + 23 and potential for -27
c) +18 and potential for -21
d) +15 and potential for -15
e) +11 and potential for -10
6)
I am comfortable with investments that may frequently experience large declines in value if there is a potential for higher returns. What is your view regarding this statement?
a) Strongly disagree
b) Disagree
c) Somewhat agree
d) Agree
e) Strongly agree