Morningstar Risk Tolerance Questionnaire

When do you expect to start withdrawing money from your investment.

Morningstar risk tolerance questionnaire. In developing the individual questions and answers to the risk assessment questionnaire morningstar combines principles of prudent financial planning along with mathematical probability testing. Experts say the best way to determine your risk tolerance is to objectively measure it. At the bottom of the page click next to proceed to the next set of questions. Risk tolerance is a phrase that comes up quite often when you re talking about portfolio planning or putting a portfolio together.

Click here to get the morningstar risk questionnaire pdf. The risk questionnaire is designed to assess the client s risk tolerance. In an effort to grow your wealth can you afford to lose any money over the next two years. Developing the questions for the risk assessment questionnaire.

Morningstar has been empowering investor success since 1984 and we ve seen firsthand how great advice can help people reach their goals. There are risk tolerance questionnaires that people fill. It will usually be part of a longer risk assessment questionnaire. Morningstar risk tolerance questionnaire time horizon 1.

Your answer answer value 1 a 0 b 5 c 12 d 17 2 a 0 b 8 c 16 3 a 0 b 8 c 16 4 a 0 b 8 c 17 5 a 0 b 6 c 12 d 17 6 a 0 b 8 c 17 total risk tolerance scale 80 100 high 60 79 medium to high 40 59 medium 19 39 low to medium 0 18 low. An investor s risk tolerance varies dramatically according to one s personality and experiences. I often get asked my opinion on the morningstar risk tolerance questionnaire. So today i am taking a deeper look at the good and the bad.

For each question click the radio button next to the best response. This questionnaire was developed in partnership with morningstar a leading expert in risk tolerance assessment. Financial advisers often test individuals to determine their risk tolerance before deciding on which investments to make. Risk assessment questionnaire page 8 of 9 an investor with a time horizon score of less than 2 years may not be able to bear the risk associated with any of the investment options.

Morningstar risk questionnaire time horizon. Less than 2 years 2 to 5 years 6 to 10 years 11 years or more. Morningstar is a popular tool used by financial advisors for investment research and financial planning. Recommending an asset allocation.

The adviser may recommend a zero risk investment to the investor. An example of such a test developed by morningstar s adviser workstation team consists of a set of questions that seeks to.