Risk Tolerance  
Aiming for high investment returns generally means accepting a higher level of investment risk. That is, investment vehicles that have the potential to provide high returns typically have increased volatility. This calculator is designed to help you clarify your comfort level with investment risk.
     

1. If one of your investments lost 25 percent of its value in a short
period of time, how would you react?

Hold steady
Buy more at the lower price
Sell out of the position, cutting further losses

2. With which of the following investments do you feel most comfortable?

High-grade corporate bond
Certificate of deposit
Growth stock

3. Of the following stocks, which do you feel would best suit your needs?

An aggressive small-company stock that pays no dividends but offers great potential for long-term growth
A conservative utility stock that pays high dividends but offers little chance for long-term growth
A "blue chip" stock that offers the potential for modest dividends and growth

4. What have you traditionally considered most important for your
investments?

Maximum growth
Conservative growth
Safety

5. Which would make you happier?

Avoiding an investment that would have resulted in a large loss
Picking an investment that results in a large gain
No preference

6. How would you advise a recent college graduate regarding his/her first paycheck?

Start investing right away
Use the money to make sure you have adequate insurance
Use the money for household expenditures

7. In his poem "If," Rudyard Kipling wrote, "If you can make one heap of all your winnings, and risk it on one turn of pitch-and-toss, and lose, and start again at your beginnings and never breathe a word about your loss......you'll be a man my son."
Do you agree with this sentiment?

Agree
Neither agree nor disagree
Disagree

8. What is your feeling about insurance (life, health, disability income, homeowners, etc.)?

Insurance is the foundation of a sound financial strategy
Most of the time insurance is a necessary expense
Who needs insurance?

9. If an eccentric millionaire offered you your choice of the following, which would you choose?

A guaranteed $10,000
A 90 percent chance of receiving $20,000
A 50 percent chance of receiving $50,000

10. Which of the following best represents your philosophy about life?

Nothing ventured, nothing gained
Everything in moderation
Slow and steady wins the race

 
   
   
Wisemoney Solutions / Cynthia Stauffer, CFP®
3927 Shelter Grove Drive • Claremont, CA • 91711-3030
Phone: 909-392-0186 • Fax: 909-392-8992
• cynthia.stauffer@natplan.com

Securities licensed associates of Wisemoney Solutions, are Registered Representatives & Investment Adviser Representatives.  Securities and investment advisory services offered through NATIONAL PLANNING CORPORATION (NPC), NPC of America in FL & NY, Member FINRA/SIPC, and a Registerred Investment Adviser, Registerred Representatives of NPC may transact securities business in a particular state only if first registered, excluded or exempted from Broker-Dealer, agent or Investment Adviser Representative requirements.  In addition, follow-up conversations or meetings with individuals in securities, will not be made absent compliance with state Broker-Dealer, agent or Investment Adviser Representative registration requirements, or an applicable exemption or exclusion. The opinion voiced in all articles are general information only.  They are not intended to provide specific advice or recommendations for any individual and do not constitute and endorsement by NPC.   Wisemoney Solutions and NPC are separate and unrelated companaies. 


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