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Personality Test

Personality Test

This 25 question survey will help your advisor determine what type of portfolio or investment strategy may be optimal for you. This survey is being provided to you by Ridgewood Investments (www.ridgewoodinvestments.com). The survey questions below, for the most part, do not involve right or wrong answers. They are designed to assess your background and feelings across a number of important metrics that will help assess what type of portfolio may be the best fit for you.

Please read the questions carefully and select the answer that seems closest to reflecting your view of the best answer to the corresponding question. All questions are required to be completed prior to submitting your survey. Once you have complete have completed the survey please click on the SUBMIT button at the bottom of this page. After you have completed the questionnaire, you can discuss the results of your profile with one of our investment advisors to review the results of your questionnaire with you. You can reach us by email at info@ridgewoodgrp.com or by calling: 973-544-6970.

Visit our websites: www.ridgewoodinvestments.com and www.indexvalue.com

  • How many years will it be before you need to withdraw a total of 20% of all your investments for living expenses or some other expense? For example, if you start withdrawing 5% per year next year, the answer would be 4 years, or choice B. If you won't withdraw any funds for 10 years or more, the answer will be E: 10 years or more. Note: Due to unknown market fluctuations, assume your investments do not increase in value.
  • Within how many years do you plan to withdraw 50% or more of all your investments for your expenses or other needs? Note: Due to unknown market fluctuations, assume your investments do not increase in value.
  • How old are you? If this investment is meant to be passed on to your heirs, please indicate their average age instead of your own age
  • What is the estimated value of your assets minus your liabilities? In other words, calculate what you own minus what you owe. This includes the equity in your home, your taxable and tax-deferred investments, the equity value of rental properties, and business ownerships.
  • What is the current value of your long-term investments only, including your regular savings accounts, brokerage accounts, tax-deferred retirement savings plan with your employer, and your individual retirement accounts (IRAs)?
  • This is the first of several questions designed to assess your knowledge of and experience with investing. What percentage of investment managers beat index funds over the long-term (10 years or more)?
  • Is a short-term market timing a good way to invest for the long-term?
  • Which of the index fund investments below have the highest long-term (20+ year) returns on average?
  • How good are you at reading and understanding charts, graphs, and statistics?
  • What 3 factors explain 90% of the variability of stock market returns?
  • What does Warren Buffett say is the best way for average investors to own common stocks?
  • Would you agree that investors who buy and hold a risk-appropriate portfolio of index funds are more likely to outperform investors who trade among actively managed mutual funds?
  • Estimate your annual living expenses and divide them by your available retirement savings. What percentage do you get? For example, if you need approx $100K per year for living expenses and your retirement savings are $500K currently, then 100 divided by 500 is 20% so your answer would be C. below
  • What is your total annual income
  • I think investing for the long-term makes more sense than focusing on the short-term
  • I expect my income to increase above the rate of inflation, which has averaged around 3% over the past 80 years
  • I would rather have a portfolio that delivers a volatile 10% return over time as compared to a smooth 5% return over time. A more volatile portfolio is one that may experience greater fluctuations (both up and down - i.e. higher highs when market is rising and lower lows when market is falling)
  • What is the worst twelve-month percentage loss you would tolerate for your long-term investments, beyond which you would be inclined to sell some or all of your investment?
  • In October 1987, the stock market fell over 20% in a single day. If you owned investments that fell more than 20% in one day, what would you do?
  • How do you feel about this statement: "I am comfortable with a portion of my portfolio being invested in a diversified basket of international and emerging markets related index funds and companies even if they have above average volatility"
  • How do you feel about this statement: "During time periods of market declines, I prefer to sell off my riskier assets and put the money into safer assets."
  • How do you feel about this statement: "In investing it makes sense to find out what is working right now and invest in it for short-term gains; trading the trend and market timing is the way to get rich, patience and long-term investing don't work."
  • On a scale of 5 to 100, with 100 being the highest risk and also the highest return, what is your personal estimate of the proper risk tolerance for your entire investment portfolio?
  • How do you feel about this statement: "In investing it makes sense to find out what is working right now and invest in it for short-term gains; trading the trend and market timing is the way to get rich, patience and long-term investing don't work."
  • Which of the portfolios below would you choose assuming a $100,000 initial investment and the corresponding worst loss, best gain, and total return of that portfolio over time? (Remembering that even a very small difference in average % return per year leads to a large difference in total amount of return over time.

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