CT Investment Questionnaire Chris Toadvine Investment Questionnaire Client #1 Name* First Last Client #2 Name First Last Email* Below are 13 questions that make up your Investment Questionnaire.To obtain the most accurate scoring, you should sequentially answer these questions and also check that all questions are answered before totaling score. This Investment Questionnaire only pertains to the assets that we will be recommending for you. INVESTMENT TIME HORIZON1. In how many years will you begin taking withdrawals from your portfolio?* Less than 3 years 3-5 years 6-9 years 10-15 years More than 15 years 2. Once you begin making withdrawals, how many years will you be withdrawing money from the account?* Lump sum or fully withdraw in less than 3 years Over a period of 3-5 years Over a period of 6-9 years Over a period of 10-15 years More than 15 years Investment Time Horizon 3. Investment decisions are generally determined by a risk/return tradeoff. Risk is any possibility of loss to the value of your portfolio. Return is the amount earned or profit on an investment. How would you respond to the following statement? "Protecting my portfolio from loss is more important to me than achieving high returns."* Strongly Agree Agree Risk and return are equally important Disagree Strongly Disagree 4. Riskier investments have the potential to experience higher long-term capital appreciation. Likewise, less risky investments have less potential for high long-term capital appreciation. With this in mind, which of the following statements is most consistent with your investment attitude?* I am willing to endure losses to maximize the chance of experiencing high long-term capital appreciation I am equally concerned with avoiding losses and experiencing long-term capital appreciation Avoiding losses is more important to me than experiencing long-term capital appreciation. 5. Historically, investors who have received higher long-term returns have also experienced major changes in the value of their investments. Higher long-term returns come with a greater chance of loss.* I feel most comfortable with stable investments that generate consistent, but lower returns year-to-year. I prefer to assume as little risk as possible. I am willing to withstand some fluctuations in the value of my portfolio, but I prefer to be invested in less risky investments that reduce the likelihood of large losses. I seek substantial investment returns and am willing to accept occasional short-term declines associated with this strategy. I seek potentially high investment returns and am willing to accept the higher risk of potential losses associated with this strategy. 6. This graph shows a range of potential returns and losses of four hypothetical portfolios over a one-year period. In which of these portfolios would you feel most comfortable investing?* Portfolio A Portfolio B Portfolio C Portfolio D 7. This graph depicts the value of three hypothetical investments over a four-year period. Riskier portfolios experience more frequent and significant changes in value. Higher levels of risk go along with potentially higher levels of long-term returns. In which of the portfolios below would you feel most comfortable investing?* Portfolio A Portfolio B Portfolio C 8. Over the course of twenty years, a portfolio will experience a variety of returns. The following question details the range of results for three hypothetical investments. In which portfolio would you feel most comfortable?* An average return of 7% with one negative year and where the majority of returns ranged from 5% to 10% each year. An average return of 11% with three negative years and where the majority of years ranged from 5% to 15% each year. An average return of 16% with increased volatility, five negative years, and several years above 20%. 9. Over time, inflation can have a significantly negative impact on what your money can buy. By keeping pace with inflation, investors can maintain their buying power over time. Which of the following choices best reflects your attitude toward inflation and risk?* Although I may only keep pace with inflation, my main goal is to avoid loss. While accepting a low level of risk, my main goal is to earn slightly more than inflation. My main goal is to increase the value of my portfolio. Therefore, I am willing to accept short-term losses associated with more aggressive investment options. I am willing to endure large fluctuations in the value of my portfolio for the chance of obtaining a higher return and beating inflation. 10. The table below shows risk and return characteristics of three portfolios. With higher prospective returns, possible losses also increase. In which portfolio would you want to invest?* Portfolio A Portfolio B Portfolio C 11. I am comfortable with investments that may frequently experience large declines in value if there is a potential for higher returns. These frequent and large declines may be experienced at an inopportune time, such as at the end of the investment horizon.* Strongly Disagree Disagree Agree Strongly Agree 12. In some cases, aggressive investments not only have negative returns, but they also experience sustained periods where the value of the investment significantly declines and takes several years to rebuild wealth. The following chart shows the historical performance of three hypothetical portfolios over a 20-year period. Which portfolio would you be most comfortable with?* Portfolio A Portfolio B Portfolio C 13. Most investments fluctuate over the short term. Suppose you invested $30,000 in a mutual fund this year with the intention of holding it for ten years. If this investment lost value during the first year, at what value of your initial $30,000 investment would you sell and move to a more stable investment?* $28,500 $27,000 $25,500 $24,000 or less I would not sell Risk Tolerance
