1. When do you expect to begin withdrawing from this portfolio?
2. Once you begin withdrawing money from your investment, over how long of a period do you anticipate the withdrawals to continue?
3. Inflation can greatly erode the return on your investments, especially over time. For example, in a typical year with a 3.5% inflation rate, a 6% return before inflation would have a real return of only 2.5% (6% - 3.5% = 2.5%). Which of the following portfolios is most consistent with your attitudes regarding investing and inflation?
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 five hypothetical investments of $100,000 and the possibility of lower value (ending value of less than $100,000) or higher value (ending value of more than $100,000) over a one-year holding period. Please select the portfolio with which you are most comfortable investing.
5. Investing involves a trade-off between risk and return. Historically, investments with higher returns have been associated with greater risk and chance for loss. Alternatively, cautious investments that have had a lower chance for loss, also have yielded lower returns. Considering the above, which of the following statements best describes your attitude to risk?
6. Sometimes investment losses are permanent, sometimes they are prolonged, and sometimes they are short-term, followed by market recoveries. How might you respond when you experience investment losses?
7. The following answer options are descriptions of 5 sample portfolios and their potential portfolio gain and loss outcomes over a short time horizon (i.e. 1 year). Note: Investments carrying a higher risk come with the potential of achieving more gains, but also a higher possibility of incurring considerable losses. Which of the sample portfolios would be most attractive to you?