Vested Partners – Risk Tolerance Questionnaire

Client Information

Primary Client Name Co-Client/Spouse Name Date Advisor

Case ID: (for advisor reference)

Section A – Financial Capacity (30 points possible)

A1. What is your investment time horizon for the majority of these funds?

Less than 2 years (0 points) 2–5 years (2 points) 5–10 years (4 points) 10–20 years (6 points) More than 20 years (8 points)

A2. What percentage of your portfolio do you expect to need for liquidity in the next 5 years?

More than 50% (0 points) 25–50% (1 point) 10–25% (3 points) 5–10% (5 points) Less than 5% (7 points)

A3. How stable is your primary income source?

Very unstable/unemployed (0 points) Unstable (commission, contract work) (2 points) Somewhat stable (3 points) Stable salary (5 points) Very stable (tenured, government) + other income sources (7 points)

A4. What is your current debt-to-income ratio (excluding mortgage)?

More than 25% (0 points) 15–25% (1 point) 10–15% (3 points) 5–10% (5 points) Less than 5% or debt-free (8 points)

Section A Total: 0 / 30

Section B – Risk Tolerance (40 points possible)

B1. During the 2008 financial crisis, the stock market lost approximately 37%. If you had owned a diversified stock portfolio then, what would you have done?

Sold everything immediately to avoid further losses (0 points) Sold some to reduce my risk exposure (3 points) Held on and did nothing (7 points) Bought more while prices were low (10 points)

B2. You invest $100,000 today. What would you expect this investment to be worth in 10 years?

$100,000–120,000 (I want to preserve capital) (2 points) $120,000–160,000 (Steady growth is important) (4 points) $160,000–220,000 (I want good growth) (6 points) $220,000–300,000 (I want high growth) (8 points) More than $300,000 (Maximum growth is my priority) (10 points)

B3. In any given year, what would be the maximum loss you could tolerate on your total portfolio before you would want to change your strategy?

Any loss would concern me (0 points) 5% loss (2 points) 10% loss (4 points) 15% loss (6 points) 20% loss (8 points) More than 25% loss (10 points)

B4. Imagine your portfolio lost 20% of its value in the first year. What best describes your likely reaction?

I would be devastated and sell everything (0 points) I would be very concerned and sell most investments (2 points) I would be worried but probably hold on (5 points) I would stay calm and stick to my plan (8 points) I would see it as a buying opportunity (10 points)

Section B Total: 0 / 40

Section C – Investment Experience & Knowledge (15 points possible)

C1. How would you describe your investment experience?

No experience (0 points) Limited experience (savings accounts, CDs) (1 point) Some experience (mutual funds, basic stocks) (3 points) Considerable experience (diverse portfolio, 5+ years) (5 points) Extensive experience (complex strategies, 10+ years) (5 points)

C2. How well do you understand the relationship between risk and return?

I don't understand it (0 points) I have a basic understanding (2 points) I understand it fairly well (4 points) I understand it very well (5 points)

C3. Have you ever experienced a significant investment loss (more than 10%)?

No, and it would devastate me (0 points) No, but I think I could handle it (2 points) Yes, and I panicked and sold (1 point) Yes, but I held on and recovered (4 points) Yes, and I bought more at lower prices (5 points)

Section C Total: 0 / 15

Section D – Behavioral Factors (15 points possible)

D1. When making investment decisions, which statement best describes you?

I need guarantees and certainty (0 points) I prefer low risk with modest returns (2 points) I want balanced growth with some risk (4 points) I'm comfortable with higher risk for better returns (6 points) I seek maximum returns regardless of risk (7 points)

D2. How do you typically react to market volatility in the news?

I get very anxious and want to make changes (0 points) I worry but usually don't act (2 points) I pay attention but stay calm (4 points) I largely ignore short-term market news (6 points) I look for opportunities during volatile times (8 points)

Section D Total: 0 / 15

Scoring Summary & Adjustments

Raw Total (before adjustments): 0 / 100 Adjustments Applied: 0 points Final Score: 0 / 100 Preliminary Risk Profile: Conservative

Adjustment Factors

Age over 65 (subtract 5 points) Approaching retirement (within 5 years) (subtract 10 points) Large inheritance / windfall (add 5 points) Single income household (subtract 5 points) Pension / guaranteed income (add 5 points)

Conservative (0–25 points)
Capital preservation is your primary concern. Typical allocation: 20% stocks, 80% bonds/cash.

A copy of your full responses and score will be sent securely to your advisor.