Risk / Return Questionnaire
1. What is your investment time horizon for this account?
a. 1-3 years (8)
b. 3-5 years (20)
c. 5-10 years (35)
d. More than 10 years (45)
2. For how many years will you be making withdrawals?
a. 1-3 years (8)
b. 3-5 years (20)
c. 5-10 years (35)
d. More than 10 years (45)
e. I plan to take a lump sum distribution. (0)
3. Which of the following best describes your primary investment objective?
a. Preservation of principal (8)
b. Generating current income (20)
c. Growing the value of my investment with a low chance of short-term declines in portfolio
value (35)
d. Growing the value of my investment with a moderate chance of short-term declines in portfolio
value (45)
4. I am willing to lose larger sums of money in the short-term if I can enjoy potentially higher returns in the long-term.
a. Strongly Agree (45)
b. Agree (35)
c. Disagree (20)
d. Strongly Disagree (8)
5. Which portfolio are you most comfortable with:
$100,000 Invested for 5 Years
Possible Outcomes
Worst Case Best Case
a. Portfolio 1 $70,000 $300,000 (45)
b. Portfolio 2 $95,000 $150,000 (0)
c. Portfolio 3 $90,000 $175,000 (8)
d. Portfolio 4 $80,000 $250,000 (35)
e. Portfolio 5 $85,000 $225,000 (20)
6. On January 1, 2001, you invested $100,000. On December 31, 2002, your statement showed your value was now
$75,000. What would you ask your advisor to do?
a. Sell immediately (8)
b. Decrease the amount of risk in the portfolio (20)
c. Compare your returns with market index returns (35)
d. Do nothing, since I am investing for the long-term (40)
e. Develop a more aggressive strategy to recoup my losses (45)
7. What is your rate of return objective?
a. 4-6% (8)
b. 6-8% (20)
c. 8-10% (35)
d. 10% or more (45)
8. Investments with greater risks typically have a greater chance of short-term loss in any given year. Generally, the
reward for assuming risk is a higher return over the long term.
What is your focus, increasing returns or reducing risk?
a. Increasing returns (45)
b. Primarily increasing returns while reducing risk (35)
c. Primarily reduce risk while also increase returns (20)
d. Reducing risk (8)
9. Which statement best describes your attitude towards investing?
a. I am safety conscious, and I don’t want the value of my investments to decline at all. (8)
b. I realize there are risks in investing, and I try to reduce them as much as possible. (20)
c. I am willing to assume some investment risk to enhance the return potential of my portfolio. (35)
d. I am willing to assume significant risk to maximize the possibility of higher returns of my
portfolio. (45)
10. One year ago you purchased stock in a large multi-national corporation. It is now worth 30% less then you paid for it,
but the company’s vital signs still look healthy. Your investment time horizon is 10 years. What would you do?
a. Sell the stock to avoid losing more. (-10)
b. Hold on and wait for the stock to rebound. (-5)
c. Buy more stock. If it was a good investment at the original price, it’s an even better one now. (0)
11. After an intensive financial analysis, your advisor determines that you will not meet your financial goals without
assuming additional risk in your investment portfolio. What would you do?
a. Reduce the dollar amount associated with the financial goal. (-10)
b. Increase your level of risk to have the best opportunity to achieve your financial goal. (0)
Score: ________________ ( total all points )
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RISK QUESTIONNAIRE
Tax and retirement planning
Please complete online and submit score in the " CONTACT ME LINK" or print it out, complete it at your convenience and either fax, scan or mail it back to me at the following address. Thank you, Harry.
Harry Licursi
Harry Licursi, Tax & Retirement
Planning
PO Box 2402
Santa Rosa CA 95405
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