1. In how many years do you expect to start spending money from this investment?
I need to live off the returns right now, and I am not trying to grow the portfolio.
I need to live off the returns right now but I am concerned about inflation and will sacrifice some current income for portfolio growth.
I am two to five years away from needing the money.
I am six to ten years away from needing the money.
I am eleven to nineteen years away from needing the money.
I am a long-term investor and I do not expect to need to spend the money for twenty years or more.
I don’t ever intend to spend the money even though I expect to invest for more than twenty years.
2. What percentage of your total net worth (assets minus liabilities) is represented by the investment you are making in your Efficient Market Portfolios account?
< 10%
11% - 25%
26% - 50%
51% - 75%
75% or more.
3. What period of consecutive declines would you accept before you began to feel uneasy about your portfolio?
Three consecutive months.
Two consecutive quarters
Three consecutive quarters
Two consecutive years
Three consecutive years or more
4. If you were asked to choose between these three simple investment scenarios, which do you think you would pick?
A. Low Risk, Low Return
B. Between A & C
C. Moderate Risk, Moderate Return
D. Between C & E
E. High Risk, High Return
5. What average annual rate of return are you expecting to receive on your investments?
5% or less
6% to 8%
8% to 10%
10% to 12%
> 12%
6. If your portfolio declined dramatically (15% or more) over a short or medium time period how would you most likely react.
I would liquidate and move on.
Nothing, there will be good periods too, that’s how averages are made.
Take the opportunity to add to my portfolio in hopes of gaining from a rebound.
7. When you reach your objective with this portfolio, what is your plan for spending it?
I expect my living expenses to be significantly lower than they are today. (Kids gone, mortgage paid off etc.)
I expect my living expenses to be moderately lower than they are today.
I expect my living expenses to be about the same as they are today.
I expect my living expenses to be somewhat higher than they are today.
I expect my living expenses to be significantly higher than they are today.
8. Do you expect to make any substantial principal withdrawals (10% or more) during the investment period? (House down payment, balloon payment, college, boat etc.)
Yes and I expect it be > 15% of the portfolio
Yes and I expect it to be > 10% and < 15% of the portfolio.
I have no specific plans but it is a real possibility
I expect no significant principal withdrawals from this portfolio.
I do not expect to make significant withdrawals and I expect to make additional contributions over time.
9. Which statement best summarizes your view of your expected investment returns during rising and falling markets?
I would like to outperform the broad based averages during up markets and I can accept falling more than the market during declining markets.
I’d be happy capturing most of the upside gains of the markets and not decline as much as the market during falling markets.
I’m happy with modest gains in up markets but want to outperform in down markets.
Preservation of capital is more important than participation in rising markets.
Preservation of capital is more important than anything.
10. What is your level of experience investing in stocks and bonds?
I am very experienced and knowledgeable with investments in individual securities of many types as well as mutual funds.
My experience is mostly with blue chip companies and high quality bonds.
I have primarily invested in stock and bond mutual funds.
I have never invested in stocks, bonds, or mutual funds but I feel I have a good understanding of how they work.
I have never invested in any stocks, bonds, or mutual funds and I am very nervous about the prospects of doing so.
