Risk Questionnaire

Investment Planning Worksheet

What type of investor are you?

The answers provided on this sheet will help indicate which investment strategy may be appropriate for your current needs. Circle the corresponding point value and then calculate the total. Match the total to the strategy listed at the end of the score sheet.

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1. In approximately how many years do you expect to need this money?
2. Do you expect to withdraw more than one-third of the money in this account within seven years (e.g., for retirement income, home down payment, college tuition)?
3. Do you have an emergency fund (i.e., savings of at least six months’ after-tax income)?
4. If you anticipate other major expenses (e.g., college tuition, home down payment, home repairs), do you have a separate savings plan for them?
5. Approximately what portion of your total investable assets* is designated for this account?
6. Which one of the following describes your expected future earnings over the next five years? (Assume inflation will average 4 percent.)
7. Approximately what portion of your monthly take-home income(s) goes toward paying off debt other than your home mortgage?
8. How many dependents do you have? (e.g., children you continue to support, elderly parents)
9. Have you ever invested in individual bonds or bond investment vehicles, aside from U.S. Savings bonds?
10. Have you ever invested in individual stocks or stock investment vehicles?
11. When thinking about your investments, where would you place yourself on a scale of 1−8 in terms of your comfort level with risk/potential reward?
12. Which one of the following statements describes your feelings toward choosing an investment?
13. If you could increase your chances of improving your returns by taking more risk, you would:
14. Most investments fluctuate over the short term. If a $10,000 investment you made for 10 years lost value in the first year, at what point would you sell and transfer the funds to a more stable investment rather than wait for a turnaround?
15. Considering your tax bracket, do you prefer to use tax-exempt fixed income investments, even though tax-exempt investments may provide a lower current yield than equivalent taxable investments?
16. Diversified portfolios often include international investments. Are there reasons you would not want international funds as part of your portfolio?
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* Investable assets include your emergency fund, this account, bank accounts, retirement assets, CDs, mutual funds, cash value of life insurance, stocks or bonds, investment real estate, and so on. They do not include your principal residence or vacation home.

**Please note: Tax-exempt investments are not appropriate for tax-deferred retirement arrangements.

Points Strategy Asset Class Mix

0–9 Income with Limited Growth: 80% Fixed Income, 20% Equity
10–19 Income with Moderate Growth: 60% Fixed Income, 40% Equity
20–49 Growth and Income: 40% Fixed Income, 60% Equity
50–69 Primarily Growth*: 20% Fixed Income, 80% Equity
70+ Growth: 98% Equity, 2% Cash

Given your specific circumstances, if you believe that any of these strategies will be more suitable than the diversified strategy specified by the worksheet, your advisor will discuss the alternatives and make an appropriate recommendation.

If your score points you to the Primarily Growth strategy, consider investing in the Growth strategy if the amount that you are investing for this goal represents the only aggressive portion of your total portfolio and if you already own more conservative investments—such as fixed income and short-term securities—that can provide a balance to the short-term fluctuations of stocks.