Personal Investment Risk Analysis Assessment

These questions are specifically designed to find out how you view risks and perceive risk in investments. This allows up to design an investment strategy that suits your personal needs. There a number of articles that should be read after completing the survey to help you understand the results. These include; Personal Risk Profile and Basic Risk Profiling.

We have many educational content that we believe would be of interest to you.

Step 1 of 14 - Page 1

This is a risk form need to add more words Warning This Is in no way considered asm any form of financial advice . This questionarrie is only to show your potential risk profile. Foir detailed risk profile you MUST should consult a financial advisor

Name

Phone

Which of the following best describes your current stage of life?(Required)

Single with few financial burdens. Ready to accumulate wealth for future short term and long term goals.

A couple without children. Preparing for the future by establishing a home. Expecting to have or already have a high purchase rate of household and consumer items.

Young family with a home. You have a mortgage and childcare costs and maintain only small cash balances.

Mature family. You are in your peak earning years and your mortgage is under control. You both work and you may or may not have children that are growing up or have left home. You’re ready to start thinking about your retirement years

Preparing for retirement. You own your home and have few financial burdens; you want to ensure you can afford a comfortable retirement.

Retired. You rely on existing funds and investments to maintain your lifestyle in retirement. You may already be receiving a Government pension and/or Superannuation pension.

The 4 Phases of Wealth Creation in your life cycle - where would you consider yourself to be - NB your physical age is not a factor in determining your phase ?(Required)

Foundation Phase - establishing the foundations for your investing life cycle

Growth Phase - actively investing - and focusing on growing in your investing life cycle

Preservation Phase - reducing the risk in your portfolio and consolidating the asset you have in your investing life cycle

Distribution Phase (Early) - enjoying the fruits of your labour stage of your investing life cycle

Distribution Phase (Late) - of your investing life cycle - Retirement

How secure is your current and future income from sources such as salary, pensions or other investments?(Required)

Not secure.

Somewhat secure.

Fairly secure.

Very secure.

What would you estimate your total annual income (before tax) ?(Required)

Less than $30,000

Between $30,000 and $80,000

Between $80,000 and $180,000

Between $180,000 and $250,000

Greater than $250,000

What would you estimate your Net Worth to be, that is total assets excluding the family home less liabilities?(Required)

Less than $250,000

Between $250,000 and $500,000

Between $500,000 and $750,000

Between $750,000 and $1,000,000

Between $1,000,000 and $3,000,000

Greater than $3,000,000

If you have borrowed before to invest how would you rate your experience?(Required)

It met my objectives for creating wealth.

I was generally comfortable with this strategy.

The potential for tax benefits was not worth the risk.

I experienced an investment loss due to borrowing.

N/A – I have never borrowed to invest before.

How familiar are you with investment matters?(Required)

Not familiar at all with investments and feel uncomfortable with the complexity.

Not very familiar when it comes to investments.

Somewhat familiar. I don’t fully understand investments, including the sharemarket.

Fairly familiar. I understand the various factors which influence investment performance.

Very familiar. I use research and other investment information to make investment decisions. I understand the various factors which influence investment performance.

What is the source of the funds you want to invest?(Required)

Personal injury or compensation payment.

Change in family circumstances (divorce, widowed etc).

Inheritance or gift (including prize money).

Superannuation and/or personal savings.

Savings

How long would you invest the majority of your money before you think you would need access to it? (Assuming you already have plans in place to meet short term cashflow and/or emergencies.)(Required)

In 2 years or less.

Within 3 - 5 years.

Within 6 - 10 years.

Not for 10 + years.

In some instances, tax savings can be obtained from investments but this means taking on more risk. Which of the following statements best describes your goal for investing?(Required)

Preferably guaranteed returns, before tax savings.

Stable, reliable returns, minimal tax savings.

Some variability in returns, some tax savings.

Moderate variability in returns, reasonable tax savings.

Unstable but potentially higher returns, maximise tax savings

When considering your investments and making investment decisions, do you think about the impact of possible losses or possible gains?(Required)

I am always concerned about possible losses.

I am somewhat concerned about possible losses.

I usually consider possible gains.

I always consider possible gains.

"Assume you had an initial investment portfolio worth $100,000. If, due to market conditions, your portfolio fell to $85,000 within a short period, say a month, would you: (If your portfolio has experienced a drop like this, choose the answer that corresponds to your actual behaviour.)"(Required)

Sell all of the investments? You do not intend to take risks.

Sell a portion of your portfolio to cut your losses and reinvest into more secure investment assets?

Hold the investment and sell nothing, expecting performance to improve?

Invest more funds to lower your average investment price?

" If the value of your investments then fell to $60,000 over the next 12 months, would you: (If your portfolio has experienced a drop like this, choose the answer that corresponds to your actual behaviour.)"(Required)

Sell all of the remaining investment?

Sell a portion of the remaining investment?

Hold your investments and sell nothing, expecting conditions to improve?

Invest more funds. You can tolerate short term losses in expectation of future growth?

Which one of the following statements describes your feelings towards choosing an investment?(Required)

I would prefer investments with little or no fluctuation in value and have a low degree of risk associated with them. I am willing to accept the lower return associated with these investments.

I prefer to diversify with a mix of investments that have an emphasis on low risk. I am happy to have a small proportion of the portfolio invested in assets that have a higher degree of risk in order to achieve a slightly higher return.

I prefer to have a spread of investments in a balanced portfolio.

I prefer to diversify my investments with an emphasis on more investments that have higher returns, but still having a small amount of low risk investments.

I would select investments that have a higher degree of investment price fluctuation so that I can earn higher long term returns.

Would you consider borrowing money to make a future investment?(Required)

Yes

Maybe

Do you feel you are appropriately covered against personal and/or business risks such as accident, illness, trauma or death? (indicate Yes or No)(Required)

Yes

Don't Know

In general, how would your best friend desribe you as a risk taker with finance?(Required)

A real gambler

Willing to take risks after completing adequate research

Cautious

A real risk avoider

You are on a game show and can choose one of the following. Which one would you choose?(Required)

$1,000 in cash

A 50% chance at winning $5000

A 25% chance of winning $10,000

A 5% chance at winning $100,000

You have just finished saving for a "once in a life time" vacation. Three weeks before you plan to leave, you get retrenched. Would you do?(Required)

Cancel the vacation

Take a much more modest vacations

Go as scheduled, reasoning that you need the time to prepare for a job search

Extend your vacation, because this might be your last chance tyo go first class

When you think of the word "risk" which of the following words come to mind(Required)

Loss

Uncertianity

Opportunity

Thrill

How confortable are you investing in shares(Required)

Not comfortable

Thinkable

Comfortable

Excited

You have been given $1,000, would you risk it to(Required)

Gain $100

Gain an additional $500 with 50% chance

A 25% to double you money and 75% chance to loose it

Triple your money for 90% to loose 100%

You have been given $10,000, would you risk it to(Required)

Gain $500

Gain an additional $400 with 50% chance

A 25% to double you money and 75% chance to loose it

A 10% to triple you money and 90% chance to loose it

A relative has left you $100,000 in inheritance, saying you must do a investment. Which one would you do?(Required)

Place it in a Superfund

Place a deposit on a property

A mutual fund that has stocks & shares

Choose recognised shares on a market

Invest in a Race horse

If you had to invest $20,000, which one would you choose(Required)

80% low risk investments, 15% medium, and 5% high risk

60% low risk investments, 30% miedium, and 10% high risk

40% low risk investments, 20% medium, and 40% high risk

10% low risk investments, 20% medium, and 70% high risk

How do you view property investing?(Required)

Low risk

Medium risk

High Risk

Extreme Risk

Keeping in mind your primary goals, what is your investment time frame, or how long do you expect this money will remain invested?(Required)

0 - 3 years

3 - 5 years

5 - 10 years

More than 10 years

Keeping in mind that the higher the return the higher the risk, what return do you reasonably expect to receive from your investments?(Required)

Less than 3%

5 - 10%

10-20%

More than 20%

Assuming you have an amount of money to invest, how would you invest it?(Required)

The safety of my money is my primary objective. I would rather have a low rate of return than risk the loss of any part of my capital.

I want my investment capital to remain relatively stable.

I am willing to accept some short-term fluctuations so as to achieve probable higher long-term returns.

In order to receive the maximum return on my investment, I am willing to accept a higher degree of risk.

With regard to tax, what are you prepared to accept in order to meet your goals?(Required)

Security of capital is my primary concern - tax is a secondary issue to me.

Stable reliable capital value and returns with some tax savings if possible.

If I could achieve tax-effective income, I would accept some additional risk and the possibility of a small reduction in value from time to time.

My primary aim is to minimise tax and I am prepared to accept much higher risk to achieve this.

How concerned are you that the growth in the value of your assets exceeds the rate of inflation?(Required)

Not concerned, do not see inflation as a problem for me.

Concerned, assets must grow at a minimum, in line with inflation.

Highly concerned, asset growth must exceed the inflation rate so that my real purchasing power is maintained.

Have you ever invested in shares, Government bonds or managed funds?(Required)

No, but if I had, the fluctuations would make me uncomfortable.

Yes, I have, but I was uncomfortable with the fluctuations despite the potential for higher returns.

No, but if I had, I would be comfortable with the fluctuations in order to receive the potential for higher returns.

Yes, I have and I felt comfortable with the fluctuations in order to receive the potential for higher returns.

How would you react if your long-term investments declined by 10% in one year?(Required)

I can not accept any declines in the value of my investments.

I generally invest for the long term but would be concerned with this decline.

If the income I received did not change I would not be too concerned about my capital declining in the short term.

I invest for the long term and would accept these fluctuations due to short-term market influences.

Which of the following statements describe your feelings towards a chosen investment?(Required)

My preference is for investments that are very low risk.

I prefer to invest mostly in low risk investments with 20% - 40% of my portfolio in higher risk investments.

I prefer to invest in a balanced portfolio.

I prefer to invest for higher returns but retain 20% - 40% in low risk investments.

I can accept fluctuations in capital value to achieve higher long-term returns.

How well do you think you know for current financial position(Required)

Not really

Really Well

In detail

How long do you think you could survive without getting paid work?(Required)

1 week

1 month

2 months

3 months

4 to 6 Months

more than 6 monts

How easy is it to get a job in your line of business?(Required)

Very Hard - could take 3 months plus

Hard

Easy

Very Easy - Get a job the next day

Do you have access to family money upto $100K shoud you get into financial trouble?(Required)

Yes

Do you have access to family money upto $1,000,000 shoud you get into financial trouble?(Required)

Yes

If you are in a relationship, and you are investing together, how hard will it be if one of you stoppped working?(Required)

Very Hard

Hard

Easy

Very Easy

For many investors, the possibility of losing money is a key concern. How do you feel about investment losses?*(Required)

Investment losses make me very uncomfortable. I check my investments often, so I can sell quickly if they begin to lose money.

Investment losses make me uncomfortable, but not uncomfortable enough to sell immediately. If losses occur over several months, I would probably sell.

Investment losses in the short-term do not bother me. I would wait an entire year before making changes.

I understand that investments can have losses, but also that I have a better chance of reaching my investment goals by sticking to the strategy over the long term. I would not make changes.

Which of the following choices best reflects your attitude toward inflation and risk? Inflation is an economic situation in which the general price of goods and services increases resulting in the same dollar buying less goods and services than before.*(Required)

My main goal is to avoid loss, even though I many only keep pace with inflation.

My main goal is to earn slightly more than inflation, while taking on a low level of risk.

My main goal is to increase investment returns and can accept short-term losses. However, I am not comfortable with the larger losses and performance shifts that may be experienced with the most aggressive investments.

My main goal is to maximise investment returns, and will accept the larger potential losses and performance shifts (especially in the short-term) that can be associated with pursuing higher returns.

Most investments go up and down. If your portfolio incurred a loss during one year, when would you sell down your portfolio?*(Required)

Only if the investment loses 10%.

Only if the investment loses 15%.

Only if the investment loses 20%.

Only if the investment loses 25%.

I would not sell despite any loss.

Investing involves a trade-off between return and risk. Investments with higher returns generally have higher risk (i.e. chance of loss). Investments with lower returns generally have lower risk or chance of loss. Which of the following statements best describes your attitude to risk?*(Required)

I am willing to accept lower long term returns to limit my chance of loss.

I am willing to bear some risk and chance for loss to achieve higher returns, but prefer most of my portfolio to be invested in investments with low return/risk.

I am willing to accept moderate risk to achieve higher returns. Minimising risk and maximising return are equally important to me.

I am willing to accept high risk to achieve high returns on my investments.

I am only concerned with maximising investment returns. I am not concerned with risk or loss and will accept significant short-term fluctuations in my portfolio.

What is your investment attitude?(Required)

Very conservative

Somewhat Conservative

Moderate

Somewhat Aggressive

Very Aggressive

Once you begin to make your withdrawals, how many years will you be making withdrawals?(Required)

Lump-sum

1-2 years

3-5 years

6-9 years

10-15 years

More than 15 years

Protecting my portfolio is more important to me than high returns.(Required)

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Keeping the above answer option in mind which of the following statements make the most sense to you?(Required)

I am willing to bare the consequences of a loss to maximize my returns.

I am concerned about losses along with returns.

To completely avoid losses is something I am more interested in

What do you expect to be your next major expenditure?(Required)

Buying a home to live in

Paying HEC debt

To Capitalizing a new business venturecompletely avoid losses is something I am more interested in

Providing for my retirement

Over the next few years, you expect the annual income to:(Required)

Stay the same

Grow moderately

Grow substantially

Decrease moderately

Decrease substantially

Assuming that you want to invest in stocks, which one would you choose?(Required)

Companies with significant technological advancement but selling their stocks at a low price

Established well-known companies that have a potentially high rate of growth.

“Blue chip” stocks that pay the dividend

Do you agree that physical property, for example, investment property and blue-chip shares are both assets?(Required)

Yes

Don't know

Would you buy an investment property without seeing it?(Required)

Yes

Maybe

Do you think control over the people investing your money is important?(Required)

Yes

No Opinion

Have you had a different set of boundaries and principles when dealing with an investment property as opposed to superannuation or your share exposure through superannuation? Even though both superannuation and property are assets.(Required)

Yes

Not Sure

Would you say you have been more assertive with superannuation than property?(Required)

Yes

Don't know

Do you think it is good to chance the way you invest in superannuation to reflect the philosophy, boundaries and financial literacy and appreciate the transparency you display when dealing with the physical property?(Required)

Yes

Don't know

How would you describe your experience with investment markets and direct shares?(Required)

I have just enough experience to understand some aspects of investment markets and direct shares

I understand that shares move up and down and that different shares have different income levels. I also understand that there can be taxation benefits with Australian shares called franking credits. I understand that the two components of shares are usually growth and income.

I am experienced with shares and have traded shares in the past.

What is your mindset around volatile markets, which means markets that lose and gain capital?(Required)

I will not accept any capital loss, ever.

I am prepared to accept small losses to my initial investment.

I acknowledge that if I want shares in my portfolio, I will have to accept losses.

I acknowledge that my adviser has talked to me about events like the 50% losses of the global financial crisis, my adviser has also talked to me about a ‘Buy & Hold’ strategy and how markets recover given a 5 to 7 year period.

I am confident that I would not ‘Panic Sell’ and that I would hold my growth investments until the market recovered.

What do you want your investments to do?(Required)

I want income and complete capital preservation. I do not want to lose any capital, ever.

I want income, but I am happy that the portfolio fluctuates in capital value conservatively.

I need income, but I also want my investment to grow over time, I am prepared to accept moderate capital losses to achieve some growth

My goal is growth, but I would also like to generate income as a secondary outcome.

My focus is high growth; I cannot get access to my investments (in super), so I am not concerned about income.

How important is it for you to minimise your tax on investment earnings and tax on capital gains when investing?(Required)

Not at all.

Slightly important.

Important. (The benefits of franking credits have been explained to me)

Very important.

How would you react if the value of your portfolio fell by more than 20% in any year?(Required)

I would sell down my investment and put the funds in cash.

I would change the way my investment portfolio is structured.

I would be confident that my strategy remains appropriate for my time horizon and would make no changes

I would consider investing more to take advantage of the lower share prices.

What best reflects your current investment goals?(Required)

I do not want any capital fluctuation.

I want primarily defensive assets like cash, and I want a small portion of shares to combat inflation.

I prefer to spread my investments across different asset classes. I understand that this will mean exposure to shares and capital fluctuation.

I am comfortable including investments with a higher degree of capital fluctuation. I want a small amount of cash left in my portfolio for liquidity purposes.

I want to invest the majority in assets like shares that have higher levels of capital fluctuation.

Risk Stage : Foundation Phase

Risk Tolerance

Moderate / Average Financial Secure purchased and owned a home for 5-plus years and has some spare cash. They would typically have a stable, reasonably paying job, and by investing, it would not significantly impact their lifestyle.

Risk Capacity

Above Average Ability to reasonably recover without any real impact on their lifestyle or future investments

Risk Appetite

Considered The investor tends to want to be educated in the specific investment format. They will require some high-level analysis along with a medium level of confidence. They will seek advice from a financial advisor.

Risk Tolerance

Risk Capacity

Risk Appetite