Investor Comfort Tool
Created by William T. Hepburn
Take this easy quiz to determine your investment style... |
1. Select
the highest risk items which you have had significant experience
with: |
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Savings: Savings and
checking accounts, CDs, money market funds. |
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Income: Annuities,
bonds and bond mutual funds as well as those above. |
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Growth: Stocks and
stock mutual funds as well as those above. |
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Speculative: Options,
gold or gold mutual funds, commodities, limited partnerships as well
as those above. |
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2. How long have you invested in stocks, bonds or
mutual funds? |
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Never |
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0 - 5 years |
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5 - 10 years |
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Over 10 years |
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3. Where would you place yourself on the following
investment risk tolerance scale?
(give yourself this number)
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4. If you hold stocks or a stock mutual fund, and
just before going to bed you hear on the news that the stock market
was down that day, what do you do? |
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Sit up in bed and say
"Oh, no!" |
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Point it out to my
spouse, worry some, but get to sleep eventually. |
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Shrug it off as one
of those days and go right to sleep. |
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Consider buying some
more of your investments. |
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Go to the computer
and enter an order to buy. |
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5. What is your main concern when you buy an
investment? |
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Avoiding all
potential for loss. |
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Low risk but some
potential for gain, too. |
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Divided equally
between a desire to avoid big losses and desire for gain. |
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Mainly gain
potential, without taking big risks. |
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Only the potential
for long term gain. |
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6. If you could choose just one of the following
portfolios, which one would it be?
| Portfolio |
Avg. Annual Return |
Best Year Return |
Worst Year Loss |
Portfolio A |
15% |
50% |
-40% |
Portfolio B |
11% |
35% |
-25% |
Portfolio C |
9% |
25% |
-15% |
Portfolio D |
7% |
15% |
-10% |
Portfolio E |
4% |
8% |
0% |
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7. You have $100,000 to invest. Which do you prefer? |
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A certain gain $2,000 |
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To possibly gain
$6,000, or possibly gain nothing. |
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To possibly gain
$25,000 or possibly lose $10,000. |
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