Your Name e-mail Contact details Telephone Contact details This survery has been developed by our partners, the Professional Advisory Network (PAN). It is designed to help you understand your appetite for risk when it comes to investment. Understanding risk is one part in developing a financial plan, which is also done with the help of tools developed by PAN. Once you have completed this, I will come back to you to discuss your results. Understanding risk is crucial to understanding investing. It is only 12 questions and 5 minutes should see you finish it. ********************\\//******************** Please answer all the questions below by circling one of the choices. In each case choose the answer that best confirms how you feel. If none of the choices seem right for your situation, select the closest option. Some of the questions ask you to imagine or assume a situation even though it may never have applied to you. The aim is to gain insight into how you would behave in such a situation so please answer as best you can with the information given. 1. Whether it comes down to luck or skill, past experiences sometimes colour our present behaviour. How much confidence do you have in your ability to make good financial decisions given your past financial experiences? Very littleSomeA good dealComplete confidence 2. When faced with a major financial decision are you more concerned about the possible gains or the possible losses? Always focus on the possible lossesUsually focus on the possible lossesWeigh up both possible gains and losses equallyUsually focus on the possible gainsAlways focus on the possible gains 3. To what extent have you taken financial risks with your personal investments in the past? Virtually no risk. I have only invested in bank deposits.A small amount of risk. I have mainly invested inbank deposits plus a small amount in debentures, property and shares.A moderate amount of risk. I have invested in bank deposits plus a reasonable amount in debentures, roperty and shares.Significant risk. I have invested a large amount of my personal wealth in debentures, property and shares. 4. Three months after making a large investment in shares you learn their value has fallen by 20%. Assuming the fundamentals of the shares remain sound, what would you do? Despite realising a loss, sell the shares in order to remove any further anxiety and put the money in the bank.Sell half, realising a loss in order to reduce further personal stress and retain the other half in the expectation of a recovery.Sit tight as you expect the shares will recover and grow in value over the medium term.Invest more. If it was worthwhile before they must be even better value at this lower price. 5. Consider the previous question again but in a different way. Whilst your shares have fallen by 20% they are part of a portfolio designed to meet your financial needs over different time horizons. Assuming the goal for the investment in shares is fifteen years away, what would you do now? Despite realising a loss, sell the shares in order to remove any further anxiety and put the money in the bank.Sell half, realising a loss in order to reduce further personal stress and retain the other half in the expectation of a recovery.Sit tight as you expect the shares will recover and grow in value over the medium term.Invest more. If it was worthwhile before they must be even better value at this lower price. 6. The expression that best describes your approach to life is: All good things come to those who waitLook before you leapJust do it!No guts, no glory 7. When you think about "risk" in a financial context, which of the following words comes to mind most strongly? HazardUncertaintyRewardExcitement 8. Imagine you are investing for your retirement which is fifteen years away. Which option would you prefer? Invest in term deposits without any possibility of large gains but where your capital is very secure and income is steady.Invest most of your money in term deposits and a small amount into shares to provide some growth in capital.Invest a small amount of your money in term deposits and the majority into shares with the aim of achieving significant capital growth.Invest all your money into shares in order to maximise capital growth over the fifteen years. 9. Now imagine you are retiring today. You wish to invest your savings to live off in retirement for the next twenty years. How would you invest your money? Invest in term deposits without any possibility oflarge gains but where your capital is very secure and income is steady.Invest most of your money in term deposits and a small amount into shares to provide some growth in capital.Invest one third of your money in term deposits and two thirds into shares to provide moderate capital growth.Invest only a small amount of your money in term deposits and the remainder into shares with the aim of achieving significant capital growth. 10. You have just won big and it is up to you to choose your prize. Which would you choose? $2,000 cash.Toss a coin, heads you get $5,000 tails you get $100.Open one of three sealed envelopes, one of which contains a cheque for $9,000 the remainder contain $150 each.Open one of five sealed envelopes, one of which contains a cheque for $20,000 the remainder contain $200 each. 11. You have just visited your financial adviser. Preliminary analysis has suggested you are unlikely to have sufficient investment funds to meet your retirement spending needs. What would you do? Accept the situation and reduce your spending.Reduce your spending level and increase your earnings by working longer.Maintain your spending level and shift your money into higher risk but higher expected return investments and consider working longer.Maintain your spending level and borrow money to make more investments that carry higher risk but a higher expected return. 12. To what extent are you prepared to take risks with your financial decisions now? No risk.A little risk.A moderate amount of risk.Significant risk.
Your Name e-mail Contact details Telephone Contact details
This survery has been developed by our partners, the Professional Advisory Network (PAN). It is designed to help you understand your appetite for risk when it comes to investment. Understanding risk is one part in developing a financial plan, which is also done with the help of tools developed by PAN.
Once you have completed this, I will come back to you to discuss your results. Understanding risk is crucial to understanding investing. It is only 12 questions and 5 minutes should see you finish it.
********************\\//********************
Please answer all the questions below by circling one of the choices. In each case choose the answer that best confirms how you feel. If none of the choices seem right for your situation, select the closest option.
Some of the questions ask you to imagine or assume a situation even though it may never have applied to you. The aim is to gain insight into how you would behave in such a situation so please answer as best you can with the information given.
1. Whether it comes down to luck or skill, past experiences sometimes colour our present behaviour. How much confidence do you have in your ability to make good financial decisions given your past financial experiences?
Very littleSomeA good dealComplete confidence
2. When faced with a major financial decision are you more concerned about the possible gains or the possible losses?
Always focus on the possible lossesUsually focus on the possible lossesWeigh up both possible gains and losses equallyUsually focus on the possible gainsAlways focus on the possible gains
3. To what extent have you taken financial risks with your personal investments in the past?
Virtually no risk. I have only invested in bank deposits.A small amount of risk. I have mainly invested inbank deposits plus a small amount in debentures, property and shares.A moderate amount of risk. I have invested in bank deposits plus a reasonable amount in debentures, roperty and shares.Significant risk. I have invested a large amount of my personal wealth in debentures, property and shares.
4. Three months after making a large investment in shares you learn their value has fallen by 20%. Assuming the fundamentals of the shares remain sound, what would you do?
Despite realising a loss, sell the shares in order to remove any further anxiety and put the money in the bank.Sell half, realising a loss in order to reduce further personal stress and retain the other half in the expectation of a recovery.Sit tight as you expect the shares will recover and grow in value over the medium term.Invest more. If it was worthwhile before they must be even better value at this lower price. 5. Consider the previous question again but in a different way. Whilst your shares have fallen by 20% they are part of a portfolio designed to meet your financial needs over different time horizons. Assuming the goal for the investment in shares is fifteen years away, what would you do now? Despite realising a loss, sell the shares in order to remove any further anxiety and put the money in the bank.Sell half, realising a loss in order to reduce further personal stress and retain the other half in the expectation of a recovery.Sit tight as you expect the shares will recover and grow in value over the medium term.Invest more. If it was worthwhile before they must be even better value at this lower price. 6. The expression that best describes your approach to life is: All good things come to those who waitLook before you leapJust do it!No guts, no glory 7. When you think about "risk" in a financial context, which of the following words comes to mind most strongly? HazardUncertaintyRewardExcitement 8. Imagine you are investing for your retirement which is fifteen years away. Which option would you prefer? Invest in term deposits without any possibility of large gains but where your capital is very secure and income is steady.Invest most of your money in term deposits and a small amount into shares to provide some growth in capital.Invest a small amount of your money in term deposits and the majority into shares with the aim of achieving significant capital growth.Invest all your money into shares in order to maximise capital growth over the fifteen years. 9. Now imagine you are retiring today. You wish to invest your savings to live off in retirement for the next twenty years. How would you invest your money? Invest in term deposits without any possibility oflarge gains but where your capital is very secure and income is steady.Invest most of your money in term deposits and a small amount into shares to provide some growth in capital.Invest one third of your money in term deposits and two thirds into shares to provide moderate capital growth.Invest only a small amount of your money in term deposits and the remainder into shares with the aim of achieving significant capital growth. 10. You have just won big and it is up to you to choose your prize. Which would you choose? $2,000 cash.Toss a coin, heads you get $5,000 tails you get $100.Open one of three sealed envelopes, one of which contains a cheque for $9,000 the remainder contain $150 each.Open one of five sealed envelopes, one of which contains a cheque for $20,000 the remainder contain $200 each. 11. You have just visited your financial adviser. Preliminary analysis has suggested you are unlikely to have sufficient investment funds to meet your retirement spending needs. What would you do? Accept the situation and reduce your spending.Reduce your spending level and increase your earnings by working longer.Maintain your spending level and shift your money into higher risk but higher expected return investments and consider working longer.Maintain your spending level and borrow money to make more investments that carry higher risk but a higher expected return. 12. To what extent are you prepared to take risks with your financial decisions now? No risk.A little risk.A moderate amount of risk.Significant risk.
5. Consider the previous question again but in a different way. Whilst your shares have fallen by 20% they are part of a portfolio designed to meet your financial needs over different time horizons. Assuming the goal for the investment in shares is fifteen years away, what would you do now?
Despite realising a loss, sell the shares in order to remove any further anxiety and put the money in the bank.Sell half, realising a loss in order to reduce further personal stress and retain the other half in the expectation of a recovery.Sit tight as you expect the shares will recover and grow in value over the medium term.Invest more. If it was worthwhile before they must be even better value at this lower price.
6. The expression that best describes your approach to life is:
All good things come to those who waitLook before you leapJust do it!No guts, no glory
7. When you think about "risk" in a financial context, which of the following words comes to mind most strongly?
HazardUncertaintyRewardExcitement
8. Imagine you are investing for your retirement which is fifteen years away. Which option would you prefer?
Invest in term deposits without any possibility of large gains but where your capital is very secure and income is steady.Invest most of your money in term deposits and a small amount into shares to provide some growth in capital.Invest a small amount of your money in term deposits and the majority into shares with the aim of achieving significant capital growth.Invest all your money into shares in order to maximise capital growth over the fifteen years.
9. Now imagine you are retiring today. You wish to invest your savings to live off in retirement for the next twenty years. How would you invest your money?
Invest in term deposits without any possibility oflarge gains but where your capital is very secure and income is steady.Invest most of your money in term deposits and a small amount into shares to provide some growth in capital.Invest one third of your money in term deposits and two thirds into shares to provide moderate capital growth.Invest only a small amount of your money in term deposits and the remainder into shares with the aim of achieving significant capital growth.
10. You have just won big and it is up to you to choose your prize. Which would you choose?
$2,000 cash.Toss a coin, heads you get $5,000 tails you get $100.Open one of three sealed envelopes, one of which contains a cheque for $9,000 the remainder contain $150 each.Open one of five sealed envelopes, one of which contains a cheque for $20,000 the remainder contain $200 each.
11. You have just visited your financial adviser. Preliminary analysis has suggested you are unlikely to have sufficient investment funds to meet your retirement spending needs. What would you do?
Accept the situation and reduce your spending.Reduce your spending level and increase your earnings by working longer.Maintain your spending level and shift your money into higher risk but higher expected return investments and consider working longer.Maintain your spending level and borrow money to make more investments that carry higher risk but a higher expected return.
12. To what extent are you prepared to take risks with your financial decisions now?
No risk.A little risk.A moderate amount of risk.Significant risk.