Welcome to the Risk Profile Score Calculator! By typing your name and email into the fields below, you are attesting to the accuracy of the information you input and consenting to disclose the information for Risk Profile Score records. This information is used to help Round Table Financial serve you in your best interest. Typing your name in the field below counts as your digital signature. Email First & Last Name (Your Digital Signature) The general definition of risk tolerance, which is crucial in investing, pertains to 'the level of risk an investor feels comfortable assuming or the extent of fluctuation in investment returns an individual is willing to endure.' Which of the following most accurately characterizes your current life stage? You possess minimal financial obligations and are eager to amass wealth for both short-term and long-term future objectives. You are in the process of establishing a household for the future, with or without children, and anticipate a high rate of expenditure on household and consumer items. You are a homeowner with an outstanding mortgage and potentially recurring expenses, maintaining modest cash reserves. ou are currently in your peak earning years, with manageable mortgage commitments, and you may or may not have children in various stages of growing up or leaving home. Contemplation of retirement may be on the horizon. Retirement planning is your focus. You own your home, bear minimal financial burdens, and are determined to secure a comfortable retirement. You are already retired, relying on existing funds and investments to sustain your retirement lifestyle. You may already receive government and/or superannuation pensions. None What is your main motivation for allocating your funds to investments? Aiming for long-term capital appreciation Fulfilling income requirements Pursuing both long-term capital growth and income generation Seeking capital stability None To what extent can you rely on your present and future income derived from your salary, pensions, or other investments? Not Secure Moderately secure Reasonably secure Highly secure None How would you assess your net worth, which includes all assets except your primary residence, minus any outstanding liabilities? Under $250,000 Between $250,000 and $500,000 Between $500,000 and $750,000 Between $750,000 and $1,000,000 Exceeding $1,000,000 None How familiar would you say you are with investment-related topics? Completely unfamiliar with investments and find their complexity daunting. Not particularly well-versed in investment matters. Moderately acquainted; I have some understanding, though not fully, especially regarding the stock market. Quite knowledgeable; I comprehend the diverse factors that impact investment performance. Extremely knowledgeable; I utilize research and other investment resources to inform my decisions and possess a comprehensive understanding of the factors affecting investment performance. None To potentially earn returns greater than typical bank interest rates, you may need to include investments that exhibit fluctuations in value, also known as volatility. How do you prioritize safeguarding your investment and reducing the likelihood of its decline in value? Extremely important; preserving my current investment is my primary objective. Important, although I'm open to a certain level of volatility within my portfolio to enhance long-term returns. Moderately important, but I'm willing to accept a reasonable degree of volatility to increase my chances of higher long-term returns. Not particularly important, as I believe that exposure to volatility is the most effective means of maximizing long-term returns. None How much do you depend on the income produced by the portfolio to satisfy your financial requirements? Not at all. I have alternative sources of income. Limited. Although I have other income sources, the portfolio's income is beneficial. Moderately. I somewhat rely on the income generated by the portfolio. Substantially. I heavily depend on the income generated by the portfolio. None If you depend on this income, what annual income amount do you expect? For how long do you plan to keep your capital invested before you foresee needing to use it? (Assume you have already established arrangements to address short-term cash needs and emergencies.) Within 2 years or less Between 3 and 5 years Between 6 and 10 years Not until 10 or more years None When evaluating your investments and making investment choices, do you take into account the potential for either losses or gains? I consistently prioritize the potential for losses. I moderately take into account the potential for losses. I typically consider the potential for gains. I consistently prioritize the potential for gains. None Assume you had an initial investment portfolio valued at $100,000. If, because of market conditions, your portfolio declined to $85,000, what would you do? (Assume you've experienced such a decline, and select the response that aligns with your actual behavior.) Liquidate all investments! You're averse to taking risks. Liquidate a portion of your portfolio to minimize losses and reinvest in more secure assets. Maintain your investment without selling, anticipating a recovery in performance. Inject additional funds to reduce your average investment cost. None Most portfolios experience some level of return volatility, which is influenced by the portfolio's exposure to growth assets. The higher the exposure to growth assets, the greater the potential for both returns and losses. Among the following portfolios, which one would you find most comfortable in terms of the trade-off between the risk of losses and the potential for returns? Portfolio 1: 25% exposure to growth assets Portfolio 2: 42% exposure to growth assets Portfolio 3: 66% exposure to growth assets Portfolio 4: 79% exposure to growth assets Portfolio 5: 98% exposure to growth assets None Considering your response to the previous question, which of the following statements most accurately reflects your approach to selecting actual investments? I like investments with minimal or no value fluctuations, characterized by low risk. I'm willing to accept the lower returns associated with these investments. I lean toward diversification, blending investments with an emphasis on low risk. I'm open to allocating a small portion of the portfolio to assets with higher risk for a slightly greater return. I prefer a well-diversified portfolio with a mix of investments. I opt for diversification with an emphasis on a greater number of investments offering higher returns, while still including a small allocation to low-risk investments. I'm prone to investments with higher price volatility, aiming for higher long-term returns. None Are there any exceptional circumstances to take into account? This could include situations such as divorce, widowhood, or the responsibility of caring for grandchildren, among others. Do you have any particular anticipations regarding the returns on your investments? This could include expectations related to index performance, returns surpassing cash yields, or specific percentage targets. Considering the portfolio traits mentioned below and the estimated data comparing risk and return, which profile from the graph below do you believe aligns most closely with your investment goals? Using this graph, please choose the corresponding plot point from the list below that best reflects your comfort level concerning the trade-off between risk and return for your investments. While risk tolerance assesses an investor's comfort with investment risk, risk capacity focuses on the level of risk an investor needs to assume to achieve their financial objectives. This entails evaluating the potential returns associated with different investments and the timeframes involved. It's crucial to note that risk capacity is equally significant as risk tolerance when it comes to guiding your advisor in determining suitable investment strategies and making recommendations. Cash Defensive Conservative Balanced Assertive Aggressive None Behaviour of asset classes This table illustrates that defensive assets, like cash and fixed interest, can offer reasonable income depending on the prevailing interest rates, but they lack growth potential, making them generally lower-risk investments. Conversely, shares have a greater potential for capital growth, which also increases their risk profile.This information highlights the connection between risk and returns. In essence, you cannot anticipate higher returns without accepting higher risk, and conversely, you cannot expect safety without accepting lower returns. None Notes: Final Step Please type the characters below to confirm you're human. Time's up
