Client Risk Profile "*" indicates required fields Step 1 of 6 16% Date* MM slash DD slash YYYY Primary Owner (Client 1)* First Name Last Name Joint Owner (Client 2) First Name Last Name Investment Needs and ObjectivesInvestment objectives are the reasons you’re investing. Think of your objective as your destination – without a place to go, you’ll just be wandering around. What’s your goal? You could be investing to start a retirement plan, to realizing your dream of owning a small business or funding your children’s education. Understanding your needs and objectives can help turn your dreams into reality.Understanding the purpose of your investment helps determine the appropriate mix of mutual funds to meet your goal(s). What’s your goal(s) for each plan? (Select all that apply for each plan)* a. Fund my retirement. b. Save for a large purchase in the near term. c. Save for a large purchase in the longer term. d. Fund my children’s education. e. Have an emergency fund. f. Grow for inheritances or charitable donations g. Other, please describe Other, please describe Time horizonThe length of time you’re invested in a plan affects the types of investments that may be right for you. Investing in a plan for more than three years gives you a greater degree of flexibility about which investments to choose. If you’re only planning to invest for short time, conservative options will likely suit your needs the most.Considering your main goal for this plan, when do you expect that you’ll have withdrawn all or a significant portion (50% or more) of the money from this account? (For joint plans, all account holders must agree on the answer)* a. 1-3 years b. 4-5 years c. 6-10 years d. Over 10 years Investment KnowledgeHow much do you know about investing? All investments aren’t appropriate for everybody. Are you confident in your knowledge about the risks related to your investments? While your Investment Representative’s job is to recommend suitable investment opportunities, being an informed investor means never investing in something that you don’t understand. This section is seeking to understand your investment knowledge.Which statement best describes your knowledge of investing?* a. I have no knowledge or experience with investing. (None) b. I have limited knowledge of the financial markets and hardly any experience with investing. (Limited) c. I have some knowledge with various investment strategies and have some experience investing. (Good) d. I have extensive knowledge of the financial markets and have a significant amount of experience investing. (Excellent) Risk CapacityRisk capacity is a mathematical measure of how much risk you can take on without potential losses causing irreparable harm to meet your investment goals. It takes into consideration your financial situation including your assets, debt and the amount and stability of your income to determine how much risk you can take.1. What is your annual gross income (from all sources)?* a. Less than $30,000 b. $30,000 - $60,000 c. $60,001 - $90,000 d. $90,001 - $120,000 e. Over $120,000 2. How would you classify your current/future income source(s)?* a. Stable b. Somewhat stable c. Unstable 3. What is your estimated net worth (What you own minus what you owe. This includes things like your house, investments and bank accounts minus things like mortgages, loans and other debts)?* a. Under $50,000 b. $50,000 - $99,999 c. $100,000 - $200,000 d. Over $200,000 Note: Note: check this box if this individual plan and the plan above include your spouse’s net worth 4. Liquid assets are assets that you can redeem for cash quickly and easily (like a bank account or taxfree savings account) for the purpose of covering a shortfall, an unexpected expense, or a short-term goal. What is the value of your liquid assets?* a. Under $25,000 b. $25,000 - $49,999 c. $50,000 - $100,000 d. Over $100,000 5. What’s your age group?* a. Under 35 b. 35-54 c. 55-64 d. 65 or older 6. For each plan noted earlier, identify the approximate percentage of your total savings and investments that the plan represents?* a. Less than 25% b. 25% - 50% c. 51% - 75% d. More than 75% HiddenRisk Capacity Score Risk ToleranceWhat keeps you up at night? Does the thought of losing money fill you with dread or do you view it as an opportunity to improve your returns by investing more while prices are lower? It would be great if the markets always went up but unfortunately that doesn’t happen. There’ll be times where we inevitably face periods of decline or volatility, either across the whole market or in specific sectors. This section looks at how comfortable you are with risk so we can recommend the best investments for you.1. The chart below shows how price fluctuations can impact the value of four different $100,000 investments over a one-year period. Which investment would you likely invest your money in? (For joint plans, all account holders must agree on the answer) a. Investment A could increase $2,000 or decrease $500 b. Investment B could increase $5,000 or decrease $2,000 c. Investment C could increase $12,000 or decrease $8,000 d. Investment D could increase $25,000 or decrease $20,000 2. In making financial and investment decisions you’re: (For joint plans, all account holders must agree on the answer) a. Very conservative and not willing to accept any declines in the value of the account b. Somewhat conservative but willing to accept a small decline in the account if it means there is a chance for it to grow c. Comfortable with moderate declines in the value of my account if that gives me the opportunity for larger returns d. Comfortable with larger ups and downs in the market if it gives me the greatest opportunity for significant returns 3. Investments with higher returns typically involve greater risk. The chart below shows hypothetical annual returns (annual increases and decreases to market value) for four different investment portfolios over a 10-year period. Keeping in mind how the returns fluctuate, which investment portfolio would you be most comfortable with? (For joint plans, all account holders must agree on the answer) a. Portfolio A - Small increases and little to no decreases each year b. Portfolio B - Small to moderate increases most years, some small to moderate decreases in other years c. Portfolio C - Moderate increases most years, some moderate decreases in other years d. Portfolio D - Large increases in some years, some moderate to large decreases in other years 4. The value of an investment portfolio will generally go up and down over time. Hypothetically, if you invested $100,000, how much of a decline in your portfolio could you tolerate over a 12-month period before you take action on the account? (For joint plans, all account holders must agree on the answer) a. I couldn’t tolerate any loss b. I could tolerate losing $3,000 (-3%) c. I could tolerate losing $10,000 (-10%) d. I could tolerate losing $20,000 (-20%) e. I could tolerate losing more than -$20,000 (more than -20%) 5. When investing your money are you more focused on the possible losses or the possible gains? (For joint plans, all account holders must agree on the answer.) a. Mainly the possible losses b. Usually the possible losses, with a lesser focus on gains c. Usually the possible gains, with a lesser focus on losses d. Mainly the possible gains 6. From September to November 2008, North American stock markets declined over 30%. If this happened today and your $100,000 investment dropped to $70,000 over a three-month period, what would you do? (For joint plans, all account holders must agree on the answer.): a. Sell all the remaining investments to avoid further losses b. Sell a portion of the remaining investment to protect some of the capital c. Hold onto the investment and hope that the market will recover d. Buy more of the investment now since the prices are lower HiddenRisk Tolerance Score
