Risk Tolerance Questionnaire

Determine Your Investor Style

Your age, the numbers of years remaining until you retire, and how you feel about risk will determine your investor style.
Once you know your investor style, you can choose funds for your retirement savings.
Be sure to answer all questions!
If you don’t know what a word means, perhaps you can find it here.

1. What is your investment horizon – when will you need this money?
Within 3 years
3-5 years
6-10 years
11-15 years
15+ years

2. Which of the following statement best describes your investment knowledge?

I’m a novice investor
I have some knowledge
I have a good working knowledge
I consider myself an investment pro

3. What is your most important investment goal?
To preserve my money
To see modest growth in my account
To see more significant growth in my account
To earn the highest return possible

4. Please indicate which statement reflects your overall view of managing risk.
I don’t like risk and I’m not prepared to expose my investments to any market fluctuations in order to earn higher long-term returns
I am prepared to experience modest short-term market fluctuations in order to generate growth of capital
I am prepared to experience average short-term market fluctuations in order to achieve a higher long-term return
I want to maximize my long-term returns and am comfortable with significant short-term market fluctuations

5. If you owned an investment that declined by 20% over a short period, what would you do?
Sell all of the remaining investment
Sell a portion of the remaining investment
Hold the investment and sell nothing
Buy more of the investment

6. What min/max potential value would you choose for a $10,000 investment over a 1 year period?
Min: $9,900 / Max: $10,300
Min: $9,000 / Max: $11,000
Min: $8,000 / Max: $12,500

7. After several years of following your retirement plan, you review your progress and determine you are behind schedule and will need to modify your strategy in order to retire at your preferred age. What would you do?
Keep the same investment you currently hold, but increase contributions as much as possible
Slightly increase your exposure to riskier investments and slightly increase your contributions
Move your entire portfolio to riskier investments, hoping to achieve the highest long-term return

8. Which statement best applies to your approach regarding achieving your retirement income goals on time?
I must achieve my financial goal by my target retirement date
I would like to come close to achieving my financial goal by my target retirement date
If I have not reached financial goal by my target retirement date, I have the flexibility to delay my target retirement date
I re-evaluate my financial goals and target retirement date regularly and have the flexibility to adjust them to align with the performance of my investments

Determine Your Fund Type

Please respond to the following statements with the option that best suits you.

Statement Option
I enjoy choosing my own investments
I monitor and rebalance my portfolio on an annual basis
I have a strong investment knowledge and keep up on the markets regularly

Optional: Please enter your name and email address to submit your answers and results to Lennox Financial. A copy will also be sent to your email address.


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