Spartan Risk Profile Questionnaire

Client Name: *

Today's Date: (mm/dd/yyyy): * +

Co-Client Name: (If Applicable)

Who is your main contact at Spartan? *

Spartan Planning Group has a wide variety of core investment models to help each client achieve his or her specific financial goals. These models range from more conservative to more aggressive growth oriented (or equity focused) portfolios. They also range from more strategic to more tactical in nature depending again on the client’s individual needs, goals, and objectives among other things. These questions will allow us to better understand your expectations, tendencies, and preferences.

Strategic strategies are, unless otherwise specified, broadly diversified across an array of asset types in order to have a mix of instruments that can benefit in a variety of market and economic conditions. The allocations within each asset class are held relatively stable over time through regular rebalancing. The goal of rebalancing is to avoid any one class dominating the portfolio for prolonged periods.

- Historically tracks more closely to the appropriate comparable market (i.e. stock market
- Tends to experience greater drawdowns in poor market conditions

Tactical strategies are also usually broadly diversified for the same reasons as Strategic strategies. However unlike Strategic, the allocations to each asset class will be periodically adjusted according to predefined rules in an attempt to take advantage of, or avoid, certain market conditions. The goal is to overweight better performing assets and underweight worse performers.

-Historically tracks less closely to the market (e.g. Dow Jones Index)

-Tends to have lower drawdowns of capital in poor market conditions

Section I: General Preferences

1. Complete the following sentence using the choices below: “To determine how well or poorly my investments are performing, I will compare them to _____________.” *

The Dow or S&P 500

What I hear from friends and/or family

It doesn’t matter as long as I’m positive (above zero)

Any return that fits within my long-term plan

2. Over what period is it fair to judge investment performance? *

Every 6 months

Every Year

Every 3 Years

Every 5 Years

3. Which one (1) of the following is the most important investment objective to you? *

Maximum growth

Inflation protection (offset rising prices)

Current income or distributions

Stability of principal (protection of original investment)

Liquidity or Access to Capital

4. Which one (1) of the following is the least important investment objective to you? *

Maximum growth

Inflation protection (offset rising prices)

Current income or distributions

Stability of principal (protection of original investment)

Liquidity or Access to Capital

5. When do you anticipate taking regular cash distributions from your account? *

<3 Years

3-5 Years

5-10 Years

10+ Years

Section II: Losses

Rationale: Behavioral economics tells us that the pain of losing is psychologically about twice as powerful as the pleasure of gaining. The sensitivity to gains and losses impacts your ability to stick to an investment plan. A better understanding of how these biases play into your investment behavior will assist in the attainment of long-term financial goals.

6. When it comes to investing, protecting the money I have is my highest priority *

7. What is the maximum amount your investments have declined in the past? *

8. If a decline of that magnitude occurred next year, how would you feel? *

Terrified – I cannot afford to take such a loss and wait for it to return

Anxious – I may need income sooner than the market will recover my losses or give me gains

Concerned – I wish I hadn’t lost but I know I need to accept some risk of loss in order to achieve correlated gains over time

Fine – It doesn’t bother me at all as long as I’m comfortable with the investment philosophy.

9. What is the maximum one-year loss you believe you can sustain before panic? (Choose one) *

10. I am unwilling to wait several years to recover from losses I might incur in an extended down market *

Section III: Gains

Rationale: Behavioral economics tells us that people tend to overestimate the probability of positive events and underestimate the probability of negative events, a phenomenon known as optimism bias. A bias towards optimism often leads investors to have an unrealistically positive view of themselves and their futures. This may lead investors to overestimate their investment results or feel more assured that their predictions of the future are more reliable. Overconfident investors tend to chase returns and underestimate risk – both of which could have serious long-term impacts on the attainment of one’s financial goals.

11. I prefer an investment strategy designed to grow steadily and avoid sharp ups and downs *

12. If your investment portfolio grew 30% in one year, how would you feel? (Choose ONE) *

It depends – how did the market do? (relative performance focus)

Ecstatic – that puts me one step closer to my goal, let’s keep going!

Happy – great return, but I want to make sure I’m not taking on too much volatility/risk

Worried – is it about to crash?

13. What is your expectation for your average annual investment return over time? (Choose one) *

14. I prefer investments that are low risk, even if returns are lower than the rate of inflation *

Would you like to include any additional questions, comments, or concerns related to this form? *

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