Select one:

Current EmployeeEx Employee

 

Are you already enrolled in this plan?

YesNo

How much risk are you willing to take?

Understanding your tolerance for investment risk relative to your investment return expectations is an important step in designing a portfolio. The questions that follow will help to develop a more accurate financial picture of your life and to get a good idea of your possible investment future. The answers you choose will indicate your comfort level with investment risk – and your ability to withstand it. They will help us to analyze your day‐to‐day financial needs, your general investment style and your personal time horizon.

1. Risk Factor

Before you make a decision on any investment you need to consider how you feel about the prospect of potential loss of principal. This is a basic principle of investing: the higher return you seek, the more risk you face. Which factor is most important to you in allocating a portfolio or choosing a particular investment?

How quickly I may be able to increase my wealthThe amount of monthly income the portfolio can generateThe safety of my investment principal

2. Investment Approach

Which of the following statements best describes your overall approach to investing?

Pursue current income, forego capital gains and minimize risk to principalIncrease investment value while minimizing potential for loss of principalPursue investment growth, accepting moderate levels of risk and principal fluctuationSeek maximum long‐term returns, accepting maximum risk with principal fluctuation

3. Volatility

The value of most investments fluctuates from year to year as well as over the short‐term. If an investment that you had committed for ten years lost 10% of its value during the first year, how would you feel?

I would be extremely concerned and would consider selling and moving the investmentI would be moderately concerned and may consider selling and moving the investmentI would be somewhat concerned but I probably would not consider selling the investmentI would not be overly concerned given my investment philosophy

4. Variation

After observing the yearly volatility in each of the following hypothetical portfolios, with which would you feel most comfortable?

Year 1 Year 2 Year 3 Year 4 Year 5 Arithmetic Average
A: 5% 5% 5% 5% 5% 5%
B: ‐5% 21% 8% 2% 9% 7%
C: 9% ‐11% 26% 3% 18% 9%
D: 14% ‐21% 40% ‐4% 31% 12%

ABCD

5. Monetary Need

Investment time horizon: Another important consideration when making investment decisions is where you are in your life cycle and how long you have before you will need the money you are investing. In about how many years do you expect to need the money you are investing?

Within 2 to 3 yearsWithin 4 to 5 yearsWithin 6 to 10 yearsMore than 10 years

6. Portfolio Withdrawal

Investment time horizon: How far in the future would you anticipate the need to withdraw more than 20 percent of your portfolio to meet a short‐term financial need?

More than 7 yearsBetween 3 to 7 yearsLess than 3 years

7. Economic ‐ U.S.

In general, your feelings about the U.S. economy over the next ten years are:

PessimisticUnsureOptimistic

8. Economic ‐ World

In general, your feelings about world economies over the next ten years are:

PessimisticUnsureOptimistic

9. Investment Value

Your portfolio design relates to your investment experience, which helps to determine your current investment philosophy. What is the current value of your total investment portfolio?

More than $1,000,000$500,000 to $1,000,000$300,000 to $500,000$100,000 to $300,000Less than $100,000

10. Household Income

This value includes earned income and investment income. Earnings should be taken into account in determining your allocation of assets. What is your annual household income (including interest income)?

More than $200,000$150,000 to $199,000$100,000 to $149,000$50,000 to $99,000Less than $49,000

11. Income Saving

The percentage of your total income that you save is approximately:

0 percent0 to 10 percent10 to 20 percentMore than 20 percent

12. Future Earnings

In the next five years, you expect that your earned income will probably:

DecreaseStay about the sameIncrease modestlyIncrease significantly

 


The following questions are optional ‐ please complete them if you feel they are applicable.


13. Income Needs

This question will help determine how much potential risk you can actually afford to take based on your own financial life cycle scenario. Which statement best describes your portfolio income needs?

No ResponseI can forego at least 10 percent of my total current portfolio incomeMy present income is adequate for my needsI need at least 10 percent more portfolio income

14. Investment Earnings

In light of other resources of income you may have, how do you anticipate using the earnings of your investment portfolio?

No ResponseReinvest 100 percent of my investment earningsReinvest 80 to 100 percent of my investment earningsReinvest 20 to 80% of my investment earningsReinvest 0% (receive all investment earnings for cash flow)

15. Living Expense

Given interruptions of periodic income or other unforeseen circumstances, some individuals are forced to tap their investment resources to meet living expenses. In such an instance, how many months of living expenses could be covered by your current liquid investments?

No ResponseLess than 3 months, or already withdrawingBetween 3 and 6 monthsBetween 6 and 12 monthsMore than 12 months, or not a concern

Notes/Comments