Asset Optimizer


1. Approximately what portion of your total "investable assets" — the dollar amount of the investments you currently have — will this investment represent?

Less than 25%"
Between 25 and 50%
Between 51 and 75%
More than 75%

2. Which ONE of the following describes your expected future earnings over the next five years?
(assume inflation will average 4%)

I expect my earnings increases will far outpace inflation. (Due to promotions, new job, etc.)
I expect my earnings increases to stay somewhat ahead of inflation.
I expect my earnings to keep pace with inflation.
I expect my earnings to decrease. (Retirement, part-time work, economically-depressed industry, etc.)

3. Approximately what portion of your monthly take-home income goes toward paying off installment debt (auto loans, credit cards, etc.) other than a home mortage?

Less than 10%
Between 10% and 25%
Between 25% and 50%
More than 50%

4. How many dependents do you have?

0
1
2-3
More than 3

5. Do you have an emergency fund?

No
Yes, but less than six months of after-tax income.
Yes, I have an adequate emergency fund.

6. If you expect to have other major expenses (such as college tuition, home down payment, home repairs, etc.) do you have a separate savings plan for these expenses?

Yes, I have a separate savings plan for these expenses.
I do not expect to have any such expenses.
I intend to withdraw a portion of this money for these expenses.
I have no separate savings plan for these items at this time.

7. Have you ever invested in individual bonds or bond mutual funds?

No, and I would be uncomfortable with the risk if I did.
No, but I would be comfortable with the risk if I did.
Yes, but I was uncomfortable with the risk.
Yes, and I felt comfortable with the risk.

8. Have you ever invested in individual stocks or stock mutual funds?

No, and I would be uncomfortable with the risk if I did.
No, but I would be comfortable with the risk if I did.
Yes, but I was uncomfortable with the risk.
Yes, and I felt comfortable with the risk.

9. Which ONE of the following statements describes your feelings towards choosing an investment?

I would only select investments that have a low degree of risk associated with them (i.e. it is unlikely I will lose my original investment).
I prefer to select a mix of investments with emphasis on those with a low degree of risk and a small portion in others that have a higher degree of risk that may yield greater returns.
I prefer to select a balanced mix of investments -- some that have a low degree of risk, but with emphasis on others that have a higher degree of risk that may yield greater returns.
I prefer to select an aggressive mix of investments -- some that have a low degree of risk, but with emphasis on others that have a higher degree of risk that may yield greater returns.
I would only select an investment that has a higher degree of risk and a greater potential for higher returns.

10. If you could increase your chances of improving your returns by taking more risk, you would:

Be willing to take a lot more risk with all your money.
Be willing to take a lot more risk with some of your money.
Be willing to take a little more risk with all your money.
Be willing to take a little more risk with some of your money.
Be unlikely to take much more risk.

11. In approximately how many years do you expect to need the money you're investing?

2-3 years
4-6 years
7-10 years
11-15 years
More than 15 years

12. Do you expect to withdraw more than one-third of the money in this account?

No
If Yes, when do you expect to withdraw from the account?
Within 3 years
4-6 years
7-10 years

Add up total points for all 12 questions.

Based on your answers to the above questions, our Asset Optimizer has awarded you a total point score. Compare that point score to the point ranges in the boxes below, then use the portfolios below as a guide.

Return to Financial Planning Guide

If you're investing for less than two years:

a

Score: 0 to 75

Chart2.gif (2700 bytes)

Score: 76 to 132

Chart3.gif (2664 bytes)

Score: 133 to 179

Chart4.gif (2615 bytes)

Score: 180 or more

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