4. How would you classify your current financial situation?
Score
a) My financial situation is somewhat unstable. (0)
b) My situation is stable but I need savings to supplement my income. (1)
c) I do not currently need my savings and investments to meet current income requirements.
However, this might change. (2)
d) I do not use my savings and investments to meet current income requirements. However,
I may need to access funds if an unexpected emergency arises. (3)
e) I have sufficient cash flow to meet my income requirements including emergencies. (4)
f) I am completely secure and I can meet emergency requirements without withdrawing
money from my long-term investments. (5)
5. Choose the statement that best describes your attitude towards investing and inflation.
Score
a) I want my investments to be safe and protected even if it means that my investments will not
keep pace with inflation. (0)
b) I am willing to accept a low level of fluctuation in the value of my investments in order to
attempt to keep pace with inflation. (2)
c) I am willing to accept a moderate level of fluctuation in the value of my investments in order
to attempt to achieve investment returns somewhat higher than inflation. (3)
d) I am willing to accept a high level of fluctuation in the value of my investments in
order to attempt to significantly outperform the rate of inflation. (4)
6. You have received $100,000 from an inheritance and, on the advice of a friend, invested in a
well-known equity investment fund with a 25-year track record of strong performance. After two
years of volatile markets you receive your statement in the mail that your original investment is
now worth $61,000. What would you do?
Score
a) I would sell. I could not take the chance that this investment would decline further. (0)
b) I would hold on. I understand markets fluctuate and would re-evaluate in one year. (2)
c) I would buy more of this investment. I have many years before I require this investment and
believe in its long-term track record. (4)
7. Assume that you have $25,000 to invest and can choose from one of five different investment
options. Each option provides the range of values that your investment may be worth in one year.
Which option would you be most comfortable investing in?
Score
a) As low as $25,000 and as high as $25,500 (0)
b) As low as $24,000 and as high as $26,500 (1)
c) As low as $23,000 and as high as $27,500 (2)
d) As low as $21,000 and as high as $30,000 (3)
e) As low as $19,000 and as high as $32,500 (4)
8. Which of the following ranges includes your current age? Score
a) Under 34 (4)
b) 35-54 (3)
c) 55-64 (2)
d) 65 or older (1)
Total Score
