Initial Discovery Questionnaire

» Required Fields

HOW CAN WE HELP YOU?






PERSONAL INFORMATION

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FINANCIAL INFORMATION

Asset Values:


Liability Amounts:


Income & Expenditure Amounts:


Estate Planning Information:


Insurance Information


RISK TOLERANCE QUESTIONNAIRE

This questionnaire is designed to help us define your time horizon and tolerance for risk. Your answers will help determine the asset allocation best suited to meet your needs.

* 1. When do you expect to begin withdrawing money from your investment account?

» Less than 1 year
1 to 2 years
3 to 4 years
5 to 7 years
8 to 10 years
11 years or more

 

* 2. Once you begin withdrawing money from your investment account, how long do you expect the withdrawals to last?

» Lump Sum
1 to 4 years
5 to 7 years
8 to 10 years
11 years or more

 

* 3. Inflation, the rise in prices over time, can erode your investment return. Long-term investors should be aware that, if portfolio returns are less than the inflation rate, their ability to purchase goods and services in the future might actually decline. However, portfolios with long-term returns that significantly exceed inflation are associated with a higher degree of risk.

Which of the following portfolios is most consistent with your investment philosophy?

» Portfolio 1 - Will most likely exceed long-term inflation by a significant margin and has a high degree of risk
Portfolio 2 - Will most likely exceed long-term inflation by a moderate margin and has a high to moderate degree of risk
Portfolio 3 - Will most likely exceed long-term inflation by a small margin and has a moderate degree of risk
Portfolio 4 - Will most likely match long-term inflation and has a low degree of risk

 

* 4. Portfolios with the highest average returns also tend to have the highest chance of short-term losses. The table below provides the average dollar return of for hypothetical investments of $100,000 and the possibility of losing money (ending value of less than $100,00) over a one-year holding period.

Please select the portfolio with which you are most comfortable.
Probabilities after 1 year:

» Portfolio A - Possible Average Value $106,000 - Chance of Losing Money 16%
Portfolio B - Possible Average Value $107,000 - Chance of Losing Money 21%
Portfolio C - Possible Average Value $108,000 - Chance of Losing Money 25%
Portfolio D - Possible Average Value $109,000 - Chance of Losing Money 28%

 

* 5. Investing involves a trade-off between risk and return. Historically, investors who have received high long-term average returns have experienced greater fluctuations in the value of their portfolio and more frequent short-term losses than have investors in more conservative investments.

Considering the above, which statement best describes your investment goals?

» Protect the value of my account. In order to minimize the chance for loss, I am willing to accept the lower long- term returns provided by conservative investments.
Keep risk to a minimum while trying to achieve slightly higher returns than the returns provided by investments that are more conservative.
Balance moderate levels of risk with moderate levels of returns.
Maximize long-term investment returns. I am willing to accept large and sometimes dramatic fluctuations in the value of my investments.

 

* 6. Historically, markets have experienced downturns, both short-term and prolonged, followed by market recoveries. Suppose you owned a well-diversified portfolio that fell by 20% (i.e. $1,000 initial investment would now be worth $800) over the short period, consistent with the overall market. Assuming you still have 10 years until you begin withdrawals, how would you react.

» I would not change my portfolio.
I would wait at least one year before changing to options that are more conservative.
I would wait at least three months before changing to options that are more conservative.
I would immediately change to options that are more conservative.

 

* 7. The following choices are the hypothetical results of four sample portfolios over a one-year holding period. The best potential gains and worst potential losses are presented. Due to risk, the portfolio with the best potential gain also has the largest potential loss.

» Portfolio A - Potential Gain +45% - Potential Loss -26%
Portfolio B - Potential Gain +34% - Potential Loss -20%
Portfolio C - Potential Gain +26% - Potential Loss -15%
Portfolio D - Potential Gain +15% - Potential Loss -7%

 

* 8. I am comfortable with investments that may frequently experience large declines in value if there is a potential for higher returns.

» Agree
Disagree
Strongly disagree

 



Cindy Skaggs, CFP®
200 Ashford Center North; Suite 400
Atlanta, GA 30338-2669
Phone: 770-353-6483 Fax: 770-353-6338
www.cindyskaggs.com