 |
 |
|
|
Investor ProfileContents:
1. Investment Profile: An Intro
2. The investment objective
3. Investment Time Horizon
4. Your financial goals
5. Personal Information
6. Attitude towards Risk
7. The four factors in the investment profile
Investment Profile: An Intro
Investment profile helps to work out the type of investment to be considered. The next step, to the basic principles of investing, is to determine the investment style. Investment strategy helps to meet the investment goals without exceeding the tolerance of risk. Needs and goals are tentative. They might change in future. For this, investment profile is to be reviewed regularly with the help of a financial advisor to make sure it lines up with the current situation.
Financial goals, current financial situation, investment experience, and attitude towards risk all help determine the mix of assets for an investor. Thus is the need for defining the goals and assess the current financial situation. Gaining a good investment experience and a mind set to face the risks, one can start on the path in developing a plan for retirement savings.
To understand the investment objectives and the investment personality an Investor Profile questionnaire was designed. This should help in Investment-making decision. The result is an investment portfolio tailored to needs. As one starts answering the questionnaire, there is no right or wrong answers. Mind should be completely open, or the results would not reflect the true investment personality.
This will assist in defining the investor profile:
The investment objective
1. What is the primary objective for the money that is invested
Investment Time Horizon
Savings and investments will be well managed during the working hours. On and after retirement, the choice of continuing to manage the investments or of purchasing a lifetime pension or annuity product is available. Intention to keep managing your savings and investments after the retirement, the investment time horizon should reflect this decision. Intention to manage the investments with a much shorter end-date in mind, then the investment time horizon should reflect this expectation.
2. How long (number of years) does one intend to manage Life savings and investment portfolio
Your financial goals
3. What is the major goal for the portfolio
The security of retirement portfolio is the only priority and not worried about the risks.
A balance between growth and security in retirement portfolio Primarily it is concerned with the overall growth of retirement portfolio and less concerned about the fluctuations.
Sole objective in retirement portfolio is maximum growth over the long term.
4. During the next five years, what portion of your portfolio would you expect to withdraw
Personal Information
5. Which of the following ranges includes your current age
• Under 30
• 30 to 39
• 40 to 49
• 50 to 59
• 60 to 69
• 70 to 79
• or above
6. The range within which your current annual family income, including pensions, before taxes fall.
7. After deducting loan and mortgage balances, what will be the family?s overall net worth
8. How would one rate immediate family's overall financial situation
9. Other than the portfolio, which of the following sources of income would be expected after retirement Please select all the choices that apply:
Rental property or the sale of a home
An inheritance
Other savings, such as an individual RRSP or pension plan at another institution or a government pension (for example, CPP or OAS).
Spouse's savings and/or spouse's pension plan
10. How would the investment knowledge be rated
• Minimal
• Modest
• Moderate
• Good
• Very good
Attitude towards Risk
11. After a significant market decline, taken an average of four years to recover lost value while bond portfolios recover in an average of two years. Anticipating downturns in the market, how long is the recovery period
• Less than three months
• Three to six months
• Six to twelve months
• 1 to 2 years
• 2 to 3 years
• Or more.
12. Assuming that it is a long term investment, what is the maximum drop in the portfolio's value that could tolerate in any given year before feeling uncomfortable
• Uncomfortable with any loss
• A 5% drop
• A 10% decline
• A 15% drop
• A 20% decline
• A 25% decline is the absolute tolerance level.
13.when offered two ways of collecting a bonus: either few months' salary in cash or an option to purchase stock that has a 50-50 chance of either doubling in value or becoming worthless over the next year. Which would be taken
• Would definitely take the cash.
• Would probably take the cash
• Would probably take the stock option.
• Would definitely take the stock option.
• Not sure what to do.
14. Faced with a choice between greater job security with a small pay raise or a much higher pay raise but less job security. Which would one select
15. Both the possibility of making money and a chance of losing all or a portion of it are involved in investment decisions. When making an important investment decision, which seems more significant to you
• The potential loss first
• The potential loss somewhat more
• Both about the same
• The potential gain somewhat more
• The potential gain first
Asset allocation is a critical factor in portfolio structure.
The four factors in the investment profile that could decide upon the investment:
• Duration: how long is the investment
• Returns: income or growth
• Liquidity: the speed to convert investment into money before the end of investment period, without taking a loss.
• Risk: The higher the risk, the higher the returns, but the more chance of taking a loss.
Even with a good advice there can still be risk.
Other Articles
|
