Risk Tolerance (WIP)

Risk Tolerance Questionnaire

Risk Tolerance Questionnaire

Check the answer to each question, and click on the “Send Form” button to submit the information.

1. Which of the following best describes your attitude about long-term investing in bonds compared to stocks?

The lower return potential of bonds leads me to prefer stocks despite their higher volatility.

Since bonds have the least volatility, but also lower returns, I have a hard time choosing between the two.

The high volatility of the stock market concerns me, so I prefer to invest in bonds.

2. You have $100,000 to invest. The following choices show a range of possible results of three different types of investments at the end of one year. Which one would you choose?

Total value of $80,000 – $140,000

Total value of $90,000 – $120,000

Total value of $98,000 – $108,000

3. When you hear “risk” related to your finances, what is the first thought that comes to mind?

I worry that I could be left with nothing

I understand that it’s an inherent part of the investing process

I see opportunity for great returns

I think of the thrill of investing

4. If you were ever to experience a 20% decline or more in the value of your investments in one year, what would you do?

Sell everything

Sell some positions

Stay invested

Reallocate my investments


5. What best describes your liquidity needs?

Aside from my portfolio, I have adequate liquid net worth and/or availability in a home equity loan to meet major near-term expenses.

I will have to rely on part of my portfolio’s income to meet major near-term expenses.

My portfolio is the major source of income for my everyday needs> My portfolio is the major source of income for my everyday needs.”>My portfolio is the major source of income for my everyday needs.

6. Which best describes your role in the monitoring and decision-making required to manage your investments?

I need to be able to make every decision and take a very active role in managing my investments.

I want to be informed of major changes and/or events to my portfolio but do not want to take an active role of decision-making and monitoring – my trusted advisor can handle the day to day items.

I’m not interested in taking an active role at all. I know my trusted investment advisor will provide me with periodic (quarterly) reports and an annual review which will detail my investment situation.

7. What is your overall knowledge of investments?

High. I have extensive experience in investing and have a broad understanding of capital markets in general.

Medium. I have some experience investing in mutual funds or individual stocks and bonds.

Low. I have very little investment experience outside of bank savings accounts, money market funds, and CDs.

First name:

Last name:


When were you born?

In how many years do you plan to retire?