Asset allocation profiler

What May Be the Best Asset Allocation for You?
How you allocate your investments among the principal asset classes - stocks, bonds, and money market instruments - can play a major role in your investment performance as well as your success in achieving investment goals. An appropriate asset allocation takes into consideration your investment time frame, objectives, risk tolerance, and personal financial considerations.

To begin considering what asset allocation may be right for you, answer the questions in the three sections below, then click Submit.

1

 Investment Objectives

In how many years do you expect to start using the money from this account?

More than 20 years

10 to 20 years

5 to 9 years

Less than 5 years

Do you have any plans to withdraw money during the early stages (first one-third) of the investment period?

No

Yes, but less than 15% of the account at one time

Yes, and over 15% of the account at one time

Not sure

If necessary, do you think that you would be able to postpone your objectives (e.g. save for a longer period, postpone or reduce withdrawals) or to use a lower amount?

Yes, I might be able to postpone

The time I have to save is fixed and I will need to use whatever money is on hand at the time

How do you expect to use the money from this investment in the future?

I expect to use this money exclusively for discretionary spending

I expect to use this money primarily for discretionary spending, but partly for necessities

I expect to use this money primarily for necessities

I expect to use this money exclusively for necessities

How concerned are you about the value of your investments relative to inflation?

I want my investments to earn significantly more than the rate of inflation and will accept sizeable performance fluctuations

I want my investments to stay ahead of inflation and will accept some performance fluctuations

I would be satisfied if my investments just keep pace with inflation so long as the value of my investment does not vary widely

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2

 Personal Financial Profile

Apart from the amount you will invest here, do you have savings equal to at least six months of your total monthly expenses that you would use in case of an emergency?

Yes

No

In addition to the savings in the question above, do you have other savings and investments in excess of 15% of your annual income OR does the equity in your home exceed $50,000 and represent at least 30% of the home's market value?

Yes, I have one or both of these

No, neither of these at this time

Do your unsecured (e.g. Credit card) debt balances exceed your after-tax monthly income?

Yes

No

Do you or your spouse participate in a formal retirement savings program (e.g. 401(k), Keogh, company-sponsored pension plan)?

Yes

No

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3

 Risk Tolerance

Describe your expected income for the foreseeable future.

My income should outpace inflation

My income should keep pace with inflation

My income may lag inflation

Which of these best describes what you think about investment strategies?

Slow and steady is the smart way to grow your investment

Taking some risk to pursue growth is okay, but it is wise to keep those risks small

Although at times you may find yourself well ahead of the pack, and at other times well behind, you have to take extra risks to really grow your investments

Suppose you initially invested $75,000 and that it grew over time to $100,000. Suppose further that your investment suddenly declined in value to $85,000, (a 15% drop). Would you:

Invest more

Be somewhat concerned but take no action

Transfer some assets to investments that have less risk

Try avoiding an investment that may suddenly lose 15% of its value

Your investment, from the question above, now worth $85,000, falls again to $80,750 (another 5%). Which best describes your response?

Invest more

Be somewhat concerned but take no action

Transfer some assets to investments that have less risk

Try avoiding an investment that may suddenly lose 5% of its value

Have you invested directly in common stocks?

Yes, and I am comfortable with the risk

Yes, and I am somewhat uncomfortable with the risk

No, but I think I would have been comfortable with the risk

No, and I think I would not have been comfortable with the risk

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If the IRA holder turns 70 1/2 this year, he can defer his first distribution until April 1 of the next year. If he is older, he would normally be required to take his RMD before December 31 of this year. However, recent legislation allows account holders to skip their 2009 RMD. in any case, RMDs are considered taxable income for the year in which they are taken.