Gordon J Maier & Company, LLP
Newsletter
Worksheet: What Is Your Risk Tolerance?

Match your risk tolerance score to the recommended model portfolios. Please keep in mind that the model portfolios are for illustration only and are not intended as specific recommendations. Your financial planner will be able to help construct a portfolio that makes sense for you.

This risk tolerance questionnaire will help you determine whether you are a conservative, moderate, or aggressive investor. You cannot fail this test, because there are no right or wrong answers.

Simply stated, risk tolerance is a measure of the potential loss you are willing to accept in exchange for the potential gains you seek. An individual's risk tolerance can depend on the goals he or she is investing for, as well as his or her personality in making investment decisions. The objective is to develop an investment plan that will help you meet your financial goals and allow you to sleep at night. A well-designed investment portfolio can increase the chances that you will stay with your investment program over the long term.

Questions
1. When do you plan to take withdrawals of principal from your portfolio?
3-5 years
6-10 years
11-15 years
More than 15 years
2. What is your age?
Under 25
25-34
35-54
55-65
Over 65
3. When making a long-term investment, I plan to hold the investment for
1-2 years
3-4 years
5-6 years
7-8 years
9-10+ years
4. In October 1987, stocks fell by more than 20 percent in one day. If you owned an investment that fell 20 percent over a short period, what would you do? (If you owned stocks in October 1987, please choose the answer that corresponds to your actual behavior at that time)
Sell all of the remaining investment
Sell a portion of the remaining investment
Hold on to the remaining investment and sell nothing
Buy more of the investment
5. Generally, I prefer an investment with little or no fluctuation in value, and I am willing to accept the lower returns associated with these investments
I strongly disagree
I disagree
I somewhat agree
I agree
I strongly agree
6. During periods of market decline, I tend to sell some of my riskier assets and put the money into safer assets
I strongly disagree
I disagree
I somewhat agree
I agree
I strongly agree
7. Based solely on a brief conversation with a friend, coworker, or relative, I would invest in a mutual fund
I strongly disagree
I disagree
I somewhat agree
I agree
I strongly agree
8. During the first half of 1994, some bond investments fell by more than 10 percent. If you owned an investment that fell 10 percent over a short period, what would you do? (If you owned bonds during the first half of 1994, please choose the answer that corresponds to your actual behavior at that time)
Sell all of the remaining investment
Sell a portion of the remaining investment
Hold on to the remaining investment and sell nothing
Buy more of the investment
9. How stable are your current and future income sources (salary, Social Security, pension)?
Very unstable
Unstable
Somewhat stable
Stable
Very stable
10. When it comes to investing in stock or bond mutual funds (or individual stocks or bonds) I would describe myself as a
Very inexperienced investor
Somewhat inexperienced investor
Somewhat experienced investor
Experienced investor
Very experienced investor
11. Consider your personal feeling about watching the fluctuations of the markets. If you owned investments, how would rises and falls in the market affect you emotionally?
Not affect me
Minimally affect me
Indirectly affect me
Directly affect me
Dramatically affect me
12. Which of the following investments would you feel most comfortable owning?
Certificates of deposit
U.S. Government securities
Stocks of older, established companies
Stocks of newer, growing companies
13. How optimistic are you about the long-term prospects for the economy?
Pessimistic
Unsure
Somewhat optimistic
Very optimistic
14. What do you anticipate your portfolio value will be 10 years from now?
The same as or a little more than it is today
Moderately greater than it is today
Substantially greater than it is today
15. What is your current income requirement (interest plus dividends) from this portfolio?
More than 4 percent
2 percent to 4 percent
0 percent to 2 percent
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Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011