Different investors have different risk tolerances. Much of the difference stems from time horizon. That
is, someone with a short investment time horizon is less able to withstand losses. The remainder of
the difference is attributable to the individual’s appetite for risk. Volatility can be nerve-wracking for
many people, and they are more comfortable when they can avoid it. However, there is a relationship
between risk and return. Investors need to recognize this risk/return trade-off. The following risk
tolerance questionnaire is designed to measure an individual’s ability (time horizon) and willingness
(risk tolerance) to accept uncertainties in their investment’s performance. The total score recommends
which of five distinct risk profiles is most appropriate for the investor.
Investment History (not scored)
1. What is your experience and overall knowledge of investments?
 I have no investment experience and a very low knowledge level regarding investments.
 I have very little investment experience and a fairly low knowledge level.
 I have some experience investing in mutual funds and am somewhat knowledgeable.
 I have some experience investing in mutual funds, individual stocks and bonds and am
somewhat knowledgeable.
 I am an experienced investor and have a solid knowledge base regarding investments
and am aware that markets can be volatile and unpredictable.
Time Horizon
2. When do you expect to begin withdrawing money from your investment account?
 Less than 2 years
 2 years
 3 to 4 years
 5 to 7 years
 8 to 10 years
 11 years or more
3. Once you begin withdrawing money from your investment account, how long do you expect the
withdrawals to last?
 I plan to take a lump sum distribution
 1 to 4 years
 5 to 7 years
 8 to 10 years
 11 years or more