3-E-1
Risk Tolerance Questionnaire
Introduction
Many objective and subjective factors must be taken into account in attempt
to determine an individual’s risk tolerance level. This questionnaire is one of
the tools we utilize.
Investment
Statements
Show how much you Agree or Disagree with each of the following
investment statements by marking the appropriate box at the end of each
sentence.
Disagree
Agree
Statement
1
2
3
4
5
I can accept minor
fluctuations in my account
#1 value in exchange for more
income.





I can accept a small risk of
loss and somewhat larger
fluctuations in my account
#2 value in exchange for
conservative growth
opportunity and the
possibility of more income.





I can accept a greater risk of
loss and greater fluctuations
in my account value in
#3 exchange for more
aggressive growth
opportunities.





I can accept the risk of
significant losses and large
fluctuations in my account
#4 value in exchange for very
aggressive, rapid growth
opportunities.





Continued on next page
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3-E-2
Risk Tolerance Questionnaire, Continued
Investment
Decisions
Please answer both Part 1 and Part 2 below:
Part 1 For each of the two investment decisions below, check the option
with which you are most comfortable.
Decision 1
Choose between

a. A sure gain of $25,000
OR

Decision 2
b. A 25% chance of winning $100,000 and
a 75% chance of winning nothing.
Choose between

a. A sure loss of $75,000
OR

b. A 75% chance of losing $100,000 and
a 25% chance of losing nothing.
Part 2 For each of the two investment decisions below, check the option
with which you are most comfortable.
Decision 1
Choose between

c. A sure gain of $250
OR

Decision 2
d. A 25% chance of winning $1,000 and
a 75% chance of winning nothing.
Choose between

c. A sure loss of $750
OR

d. A 75% chance of losing $1,000 and
a 25% chance of losing nothing.
Continued on next page
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Copyright © 2000–2006 The Garrett Planning Network, Inc. All Rights Reserved.
Page 2 of 4
3-E-3
Risk Tolerance Questionnaire, Continued
Investment
Questions
Check the boxes next to the statements that most accurately reflect your
attitudes about investing.
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







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

Investment
Input
I am more concerned about protecting my assets than about growth.
I prefer the ease of mutual funds to the uncertainty of trying to pick
winning stocks.
Professional advisors and mutual funds may achieve higher growth that I
can.
I am comfortable with investments that promise slow, long term
appreciation and growth.
I don’t brood over bad investment decisions I’ve made.
I feel comfortable with aggressive growth instruments.
I don’t like surprises.
I am optimistic about my financial future.
My immediate concern is for income rather than opportunities.
I am a risk taker.
I make investment decisions comfortably and quickly.
I like predictability and routine in my daily life.
I usually pick the tried and true, the slow, safe but sure investments.
I need to focus my investment efforts on reserve funds and insurance rather
than growth.
I prefer predictable, steady returns on my investments even if the return is
low.
Please answer the following questions:
For your current investments, what has been your annual rate of return?
Have you been satisfied with that return?
 Yes
 No
If no, why not?
What percentage of your portfolio can you afford to lose or how much
money can you afford to lose in any one year?
During the recession that began in late 2008, the stock market lost nearly 50%
of its value. Investors with $100,000 in stocks saw their accounts decline by
nearly $50,000. If you had money invested in stocks (or stock mutual funds) at
this time, did you sell some or all of them? Did you hold? Buy more? (If you
did not have money in stocks at that time, what do you think you would have
done?)
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3-E-4
For how long would you expect to keep a “long-term” investment?
Regarding your finances, what, if anything, do you spend the most time
thinking about?
Are there things in your financial life that you wish you had done differently?
I would describe my investment experience as (circle one):

Very inexperienced

Somewhat inexperienced

Somewhat experienced

Experienced

Very experienced
Are you pleased with

your ability to manage and shelter your income from taxes?

the diversification and performance of your portfolio?
What is the

best investment decision you have ever made?

worst investment decision you have ever made?
Are there any investments that you
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
will NOT sell for personal reasons?

will NOT buy for social reasons?
Copyright © 2000–2006 The Garrett Planning Network, Inc. All Rights Reserved.
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