Investor Profile QuestionnaireThe Investor Profile Questionnaire is designed to help you create a balanced portfolio of investments. Your age, investment characteristics, and several other factors are used to calculate your investment profile. Your profile, and its associated asset allocation, as an excellent place to begin creating well balance investment portfolio.
Definitions
- Age
- Your current age. This is by far the most important aspect of asset allocation. For most people the majority of their portfolio is for their retirement. The younger you are, the less likely you need this money any time soon. This allows you to invest more aggressively in stocks that generally have the best long term returns. As you get older, it is advisable to move more of your investments to securities with less fluctuation such as cash and bonds. This can help insure the money is available when you need it.
- Years before you begin to withdraw
- The longer you have before you need to tap into your investments, the more aggressively you can invest. Likewise, if you need to begin withdrawals soon, you may not be well served by a portfolio that can have wide fluctuations in value.
- Your investment goal
- This question is really about determining your expectations for this investment. Asset growth will require exposure to stocks, a focus on income requires exposure to bonds and protecting your initial investment will require a larger cash reserve.
- Risk tolerance
- Your personal ability to tolerate your portfolio value fluctuating up and down. Many people overestimate their ability to tolerate risk. The last two questions on the investor profile help weigh your ability to tolerate risk in your portfolio.
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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
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