Asset Allocation Questionnaire

The Asset Allocation Questionnaire is designed to measure how well you tolerate investment risk. Some questions ask about the amount of time you have until reaching a financial goal and the length of time that you will be taking money from your account for that goal. Answer these questions with one specific goal in mind. To determine your investment approach for other goals, fill out the questionnaire as many times as you like, with a different goal in mind each time. The Planner does not provide comprehensive investment advice. For example, the Planner does not consider your tax status or financial objectives when suggesting an asset allocation.

1. I plan to take money from my investments in...

1-5 years
6-10 years
11-15 years
More than 15 years

2. As I withdraw money from these investments, I plan to spend it over a period of ...

2 years or less
3-5 years
6-10 years
11-15 years
More than 15 years

3. When making a long-term investment, I plan to keep the money invested for ...

1-2 years
3-4 years
5-6 years
7-8 years
More than 8 years

4. From August 31, 2000 through March 31, 2001, stocks lost more than 25%. If you owned a stock investment that fell more than 25% in seven months, you would... (If you owned stocks during this period, please select the answer that matches your actions at the time.)

Sell all of the remaining investment
Sell some of the remaining investment
Hold on to the investment and sell nothing
Buy more of the investment

5. Generally, I prefer an investment with little or no ups or downs in value, and I am willing to accept the lower returns these investments may make.

I strongly disagree
I disagree
I somewhat agree
I agree
I strongly agree

6. When the market goes down, I tend to sell some of my riskier investments and put the money in safer investments.

I strongly disagree
I disagree
I somewhat agree
I agree
I strongly agree

7. Risk tolerance is the relative ability to accept measurable losses in the short-term in exchange for expected higher returns long-term. My tolerance for risk is:

Very high
Moderately high
Average
Moderately low
Very low

8. From January 31, 1999 through December 31, 1999, some bonds lost almost 9%. If you owned a bond investment that lost 9% in eleven months, you would... (If you owned bonds during this period, please select the answer that matches your actions at that time.)

Sell all of the remaining investment
Sell some of the remaining investment
Hold on to the investment and sell nothing
Buy more of the investment

9. The chart below shows the highest one-year loss and the highest one-year gain on three different hypothetical investments of $10,000.* Given the potential gain or loss in any one year, where would you invest your money?

A
B
C


10. How stable are your current and future income sources (salary, Social Security, pension, etc.)?

Very unstable
Unstable
Somewhat stable
Stable
Very stable

11. When it comes to investing in stock or bond mutual funds (or individual stocks and bonds), I would describe myself as a/an...

Very inexperienced investor
Somewhat inexperienced investor
Somewhat experienced investor
Experienced investor
Very experienced investor

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©2000 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. This questionnaire cannot be reproduced without written permission from The Vanguard Group. Used by permission, but questions, scoring and categories modified by The Trust Company of Oklahoma.