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Investor Risk Classification Approach - Questionnaire

1. Given your objectives, when will you begin withdrawing your money? I expect to begin making withdrawals in:
Two years or less
Three to five years
Six to eight years
Nine to 11 years
12 years or more

2. Once you begin making withdrawals, how long will the money need to last?
I am going to need it all at once in a lump sum
For one to five years
For six to 10 years
For 11 to 19 years
For 20 or more years

3. Inflation causes prices to rise over time. Which is more important to you — to avoid a loss of money in the short term or to withstand short-term losses to beat inflation in the long run?
It is more important to avoid a loss of money in the short term
Both concerns are equally important
It is more important to withstand short-term losses to beat inflation in the long run

4. At the beginning of the year, you have $100,000 invested. The graph on the right shows the performance of four different hypothetical portfolios. Each bar gives the range of potential returns at the end of one year. Choose the one you feel most comfortable with.
Portfolio A
Portfolio B
Portfolio C
Portfolio D

5. Which of the following statements best describes your attitude about investing for this account?
"Minimizing the chance of a decline in value in my account is critical, so I am willing to accept the lower long-term returns offered by conservative investments."
"Bearing some short-term decline in value in an effort to achieve higher long-term returns is okay. However, I prefer that the majority of my investments be in lower-risk assets."
"Seeking higher long-term returns is important to me, so I am willing to accept substantial short-term declines in value."
"Maximizing long-term investment returns is my primary objective, and I am willing to accept large—and sometimes dramatic—short-term declines in value to achieve this goal."

6. If you had money invested in a diversified portfolio and the stock market took a downturn, when would you sell your riskier investments and put the money in safer assets?
At the first sign of a decline in value
After a large (more than 20%) and/or sustained (one year or more) decline in value
I would not sell any of my investments. I would continue to follow a consistent long-term investment strategy.

7. Which of the following types of investments do you feel more comfortable with? An investment that might return:
5% a year on average over the long term, but has a 10% chance of experiencing a decline in value in a given year
9% a year on average over the long term, but has a 15% chance of experiencing a decline in value in a given year
11% a year on average over the long term, but has a 20% chance of experiencing a decline in value in a given year
14% a year on average over the long term, but has a 25% chance of experiencing a decline in value in a given year

8. Based on how often you track the performance of your investment, how long would you wait to change your investment if your investment suffered a decline in value?
One week
One month
One year
I would not sell any of my investments. If a fund declines in value, that by itself is not a good reason to sell the fund.