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Identify Your Portfolio Solution

We understand that most people invest as a way to reach their important life goals. Most understand that different types of investments involve varying degrees of risk, and that higher levels of return generally come with higher levels of risk. They know investments can go up and down. Still, by focusing too much on return and not enough on risk, they may find themselves with investments that are going down more than they expected. This can create an investment experience that they simply can't endure.

Unless an investment plan is well matched to an investor's risk tolerance, it is likely to be abandoned while the investments are falling. An investment strategy can be a long term success for other people, and yet still spell failure to someone who abandoned it during a period of poor performance.

Because of this, it's important to seriously assess just how much how much risk you're prepared to take for the return you want - before making any investment decisions. The questions that follow are intended to help you identify a risk profile that's right for you. Please select the response that best describes your feelings and/or circumstances. Your answers will be used to create a personalized Investment Policy Statement using the portfolio solutions available through the Wealth Builders Capital Management Program.

 

Wealth Builders Capital Management Program


Confidential Client Questionnaire

 

 
1. How large of a one year decline in the value of your portfolio would you be likely to accept before changing your investment strategy?

Percentage Decline
5%
8%
12%
20%
30%

Change in account value per $100,000
From $100,000 to $95,000
From $100,000 to $92,000
From $100,000 to $88,000
From $100,000 to $80,000
From $100,000 to $70,000

= 8 pts.
= 6 pts.
= 4 pts.
= 2 pts.
= 0 pts.






 

2. How much variation in the annual rate of return on your portfolio are you willing to
accept to achieve your average required rate of return over the long run?
Likely annual variations of 6% above or below your targeted rate of return
Likely annual variations of 8% above or below your targeted rate of return
Likely annual variations of 12% above or below your targeted rate of return
Likely annual variations of 15% above or below your targeted rate of return
Likely annual variations of 20% above or below your targeted rate of return
= 4 pts.
= 3 pts.
= 2 pts.
= 1 pt.
= 0 pts.




3. Which type of investment performance do you prefer?

Consistent year to year returns, averaging out to lower long term results
Wide swings in year to year returns, averaging out to higher long term results

= 4 pts.
= 0 pts.


4. How much experience do you have investing in stocks, bonds, and/or mutual funds?

None
Limited
A moderate amount
A fair amount
Extensive

= 4 pts.
= 3 pts.
= 2 pts.
= 1 pts.
= 0 pts





5. How actively do you follow the investment markets?

Not at all
Very little
Occasionally
Fairly closely
All the time

= 4 pts.
= 3 pts.
= 2 pts.
= 1 pts.
= 0 pts




6. In general, which of the following is most important to you?

Preservation of capital
Current income
Inflation protection
Predictable investment growth
Maximum capital appreciation

= 4 pts.
= 3 pts.
= 2 pts.
= 1 pts.
= 0 pts




7. How do you feel about the outlook for the U.S. economy?

Very negative
Moderately negative
Neutral
Moderately positive
Very positive

= 4 pts.
= 3 pts.
= 2 pts.
= 1 pts.
= 0 pts




8. Understanding that the opportunity for increased returns has historically been associated
with the increased likelihood of short term losses, please indicate your level of concern
with accepting a short term loss of principal:

Very concerned
Pretty concerned
Moderately concerned
A little concerned
Not concerned at all

= 4 pts.
= 3 pts.
= 2 pts.
= 1 pts.
= 0 pts




9. How concerned are you about keeping pace with inflation?
Not concerned at all
A little concerned
Moderately concerned
Pretty concerned
Very concerned
= 4 pts.
= 3 pts.
= 2 pts.
= 1 pts.
= 0 pts




10. Which of the following statements most accurately reflects your feelings about your
investments?

My primary concern is to protect the value of the assets I already have,
while still trying to meet my long term goals.

My primary concern is to achieve the return I need to reach my goals with the least possible amount of risk.

I want to target a return that is high enough to reach my goals, even if it means accepting fluctuation in my portfolio value along the way.

I want to achieve the highest return possible over long periods of time,
even if it means my goals may appear to be in jeopardy from time to time due to
fluctuations in the value of my portfolio.

= 4 pts.


= 3 pts.


= 1pts.


= 0pts.





11. What percentage of ALL your investment assets are to be invested in THIS program?

More than 80%
60% to 80%
40% to 60%
20% to 40%
Less than 20%

= 8 pts.
= 6 pts.
= 4 pts.
= 2 pts.
= 0 pts




12. How long do you expect to commit your assets to this investment program?

4 to 7 years
7 to 10 years
More than 10 years

= 4 pts.
= 2 pts.
= 0 pts