What Kind of Investor Are You?

Welcome to ABC Advisors' Investor Profiler

ABC Advisors' Investment Profiler can help you determine what kind of investor you are. ABC Advisors will monitor your portfolio, on an ongoing basis, and rebalance your account when necessary, switching investments when appropriate.

The questionnaire takes into account your time horizon, tolerance for risk, financial situation and investment experience.


Your Investment Goal

1.  What is your investment goal for this investment?

Retirement
College
Short-term savings (car, home, vacation, etc.)

Your Investment Time Frame

Determining the time frame for your investment is critical to making an investment decision: the longer your investment horizon, the more aggressive you may want to be.

2.  I plan to start withdrawing money from my investments for major needs within:

Less than 3 years
3 to 5 years
6 to 10 years
More than 10 years

3.  When I begin withdrawing my money, I plan to spend it in:

Less than 2 years
2 to 5 years
6 to 10 years
More than 10 years

How Does This Investment Fit Into Your Total Financial Picture?

It is important to consider this investment in relationship to your total portfolio. The percentage of your portfolio that this investment represents will influence how conservative or aggressive you may want to be.

4.  What is your current income/networth

Annual Income:
(combined if joint account)
Liquid Net Worth:
(cash, stocks, etc.)
Total Net Worth:
(excluding your home)

5.  Approximately what portion of your total investable assets - the dollar amount of the investments you currently have - will this investment represent? (Do not include your principal residence or vacation home when figuring this total.)

Less than 25%
Between 25% and 50%
Between 51% and 75%
More than 75%

Your expectations for future earnings will help determine how your assets should be allocated. If you're expecting significant earnings increases, it may be appropriate to be somewhat more aggressive.

6.  Which ONE of the following describes your expected future earnings over the next five years? (Assume inflation will average 4%)

I expect my earnings increases will far outpace inflation (due to promotions, new job, etc.)
I expect my earnings increases to stay somewhat ahead of inflation.
I expect my earnings to keep pace with inflation
I expect my earnings to decrease (Retirement, part-time work, economically depressed industry, etc.)

If a large portion of your income goes toward paying debt, you may need to have cash available for unforeseen circumstances. Or, you may have responsibility for ongoing family obligations. Either can dictate a more conservative approach.

7.  Approximately what portion of you monthly net income goes toward paying of installment debt (auto loans, credit cards, etc.) other than a home mortgage?

Less than 10%
Between 10% and 25%
Between 26% and 50%
More than 50%

8.  How many dependents do you have? (Include children you continue to support, spouse, elderly parents, etc.)

None
1
2 to 3
More than 3

An emergency fund can provide a cushion against unexpected expenses, so you avoid having to draw on long-term investments to meet immediate needs.

9.  Do you have an emergency fund? (savings of three to six months' after-tax income.)

No
Yes, but less than six months of after-tax income.
Yes, I have an adequate emergency fund.

10.  If you expect to have other major expenses (such as college tuition, home down payment, home repairs, etc.), do you have a separate savings plan for these expenses?

Yes, I have a separate savings plan for these expenses.
I do not expect to have any such expenses.
I intend to withdraw a portion of this money for these expenses.
I have no separate savings plan for these items at this time.

Your Personal Risk Tolerance

Your prior investment experience can help determine your attitude toward investment risk.

11.  My knowledge of investments is:

None
Limited
Good
Extensive

12.  Select the investments you currently own or have owned in the past (select all that apply):

Money market funds/cash equivalents
Bonds/bond funds
Stocks/stock funds
International securities/funds

Your comfort level with investment risk influences how aggressively or conservatively you choose to invest. It should be balanced with the potential of achieving your investment goals.

13.  When deciding how to invest my money, I am:

Most concerned about the possibility of my investment losing value
Equally concerned about the possibility of my investment losing or gaining value
Most concerned about the possibility of my investment gaining value

14.  Imagine that the stock market has dropped 25% in value over the past three months. A stock that you own has dropped by 25% in value. What would you do with your shares?

Sell all
Sell some
Keep all
Buy more

15.   Consider the annual returns of the five hypothetical investment plans below. Based on the range of possible outcomes shown, which plan would be most acceptable to you or best suit your investment philosophy?

One Year Return
Investment Plan Average Annualized Best Case Scenario Worst Case Scenario
Plan A  7.2%  16.3%  -5.6%
Plan B  9.0%  25.0%  -12.1%
Plan C  10.4%  33.6%  -18.2% 
Plan D  11.7%  42.8%  -24.0%
Plan E  12.5%  50.0%  -28.2%
These figures are hypothetical and do not represent the performance of any particular investment.