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  • Online Financial Organizer, Section II - Risk Tolerance Assessment

  • The questions in this section address various elements of risk tolerance, and are critical towards establishing a baseline allocation of overall holdings.  This is the core component of our financial analysis, and of any Investment Policy Statement.

    For years the financial services industry has used questionnaires to help design suitable investment portfolios that matched your individual risk tolerance and wealth accumulation goals but as you transition into retirement your focus on wealth accumulation chanages to wealth distribution.

     

    Changing your priorities from growth to income requires a re-assessment of your time horizon, need for income, and tolerance for investment risk.  These elements should form the basis of any re-design of your investment portfolio.

  • TIME HORIZON

  • Given your investment objectives, when would you expect to begin making withdrawls from your investments?
  • Once withdrawls begin, over how long a period do you expect withdrawls to continue?
  • RISK TOLERANCE

  • Please be aware there are no "right" or "wrong" answers to these questions. This is not a test, rather, a tool to assist in developing the most suitable mix of financial positions based on your comfort level to risk in investments.

  • Which statement best summarizes your response towards fluctuations in your investment holdings:
  • Please specify your preferences regarding the impact of inflation on your investment protfolio:
  • Consider a hypothetical $25,000 investment for a period of 1 year. Based on only the information found below, please indicate which portfolio you would invest in:
  • The table below displays the worst, most likely, and best expected returns for five hypothetical investment portfolios over a three year holding period. Which of the following portfolios would you be most comfortable holding?
  • Regarding the risk of losing money on your investment portfolio, based upon the tradeoffs below, which of these five hypothetical portfolios contain the potential gain/ chance of loss characteristics you find most suitable?
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