Page 123 - Profile's Unit Trusts and Collective Investments 2021 issue 2

Investment Risk

Risk Profiler: RISK CAPACITY
1. My current age is:
a. Under 31 A 13
b. 31 to 40 B 11
c. 41 to 50 C 7
d. 51 to 60 D 2
e. over 60 E 0
2. I hope to retire…
a. 30 to 40 years from now A 19
b. 20 to 30 years from now B 17
c. 15 to 20 years from now C 10
d. 10 to 15 years from now D 4
e. In less than 10 years from now E 2
f. I’m already retired F -6
Check that questions 1 and 2 are in sync
3. My current level of savings (including all investments, property, shares, RAs, provident funds, etc) is equal to:
a. Less than half my current annual expenses A 0
b. About half my annual expenses B 5
c. About equal to my annual expenses C 7
d. Double my current annual expenses D 14
e. Around five times current annual expenses E 22
f. Ten times my current expenses F 24
4. Regarding my current income…
a. It covers all my expenses and I’m able to save about 15% of my income (including all retirement funding) A 7
b. It covers all my expenses and I’m able to save 20% or more of my income (including all retirement funding) B 11
c. I’m just coming out each month and I’m not able to contribute to my savings at the moment C 0
d. I could save about 10% if I stuck to my budget D 4
e. My income does not cover my expenses E -24
5. Within the next few years I expect my income to:
a. Decline in real terms A 0
b. Stay about the same (gains equal to inflation) B 4
c. Increase gradually (slightly faster than inflation) C 6
d. Increase dramatically (much faster than inflation) D 12
e. Fluctuate and be unpredictable E 3
Enter ‘E’ if you only have investment income
6. Based on my lifestyle and medical history, I expect my risk of serious health problems between now and my retirement
age to be:
a. Above average A -3
b. Average B 3
c. Low C 7
d. Almost nil D 10
Enter ‘A’ if you are already retired

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Profile’s Unit Trusts & Collective Investments — Understanding Unit Trusts