The portfolio of investments appropriate for you will be based in part on the reason you are investing.
For all other goals, the amount of time you will be invested will affect the recommendations of an appropriate investment portfolio, assuming your personal and financial circumstances do not change. A change in your personal and financial circumstances can include a large withdrawal or deposit, or a change in your household income or expenses.
While over time a strategy with more risk is expected to outperform a strategy with less risk, in any given year higher-risk strategies can underperform lower-risk strategies. Occasionally, there may be negative returns in any given year, even with low-to-moderate risk strategies.
Step
Step
Step
Needs Assessment
The Needs Assessment questionnaire identifies whether your primary goal is to preserve, grow, or generate an income from your investment.
Complete your Needs Assessment by answering all of the questions, then choose '
Continue
'. Select '
Clear
' if you would like to start over.
1.
Goal of Investment
What is the primary goal of your investment?
Generate a regular cash flow from my portfolio (to begin in less than 1 year)
Save for my retirement
Save for a specific purchase/event (e.g. buying a house)
General savings
2.
Time Horizon
How long will you be invested before you need to begin withdrawing a significant portion of the funds from your investment portfolio?
If your primary goal is to generate a regular cash flow select "Less than 1 year".
Less than 1 year
1 to 3 years
4 to 5 years
6 to 10 years
More than 10 years
3.
Risk/Return
: The return on your investment portfolio will be driven by the mix of investments in the portfolio. There is, however, a trade-off between risk and return. Typically, higher potential returns are associated with higher risk, while low risk investing is associated with lower potential returns.
Which of the following combinations of risk and potential return is most acceptable to you?
Low risk with low potential returns
Low-to-moderate risk with low-to-moderate potential returns
Moderate risk with moderate potential returns
Moderate-to-high risk with moderate-to-high potential returns
High risk with high potential returns
4.
Safety of Principal
In any given year what is the maximum decline in the value of your investment you could withstand?
Zero
5%
10%
15%
20%
25% or more
5.
Portfolio Size: What percentage of your total investible assets does this investment represent?
Less than 25%
26% to 50%
51% to 75%
More than 75%
6.
Investment Knowledge: Which of the following statements best describes your current level of investment knowledge?
I am new to investing
I am somewhat knowledgeable about investing
I am quite knowledgeable about investing
I am a sophisticated investor
