THIS AGREEMENT (hereinafter “Agreement”) is made by and among the undersigned customer (hereinafter “Client”); Commonwealth Equity Services, Inc., dba Commonwealth Financial Network® (hereinafter “Commonwealth”), a federally
registered investment adviser, located at 29 Sawyer Road, Waltham, MA 02453-3483; and the Investment Adviser Representative of Commonwealth or separately Registered Investment Adviser designated below (hereinafter “Advisor”). This Agreement shall become effective as of the date accepted by Commonwealth, which acceptance may be in electronic form. All referenced schedules and addenda are incorporated herein.
Please note: Do not use this document for advising plan sponsors about tax-qualified retirement plans.
SERVICES
Client retains Advisor and Commonwealth to perform the following service(s) as set forth below (hereinafter “Services”): (Please check all that apply.)
c Financial planning c Portfolio analysis c Retirement income planning c Investment analysis
c Estate planning c Business succession planning c Budgeting and cash flow analysis c Executive benefit analysis
c Investment tax analysis c Individual qualified plan account advice*
c Education planning c Other: _______________________________________________
_______________________________________________
The Services may be provided on an hourly or flat-fee basis. Client acknowledges that this Agreement does not contemplate nor include legal, accounting, or tax advice and that neither Commonwealth nor Advisor is qualified to provide legal, accounting, or tax advice. Client is encouraged to obtain legal, accounting, and/or tax services from a qualified professional. Further, Commonwealth and Advisor are hereby expressly precluded from voting proxies for securities held by Client and will not be required to take any action or render any advice with respect to voting proxies.
To the extent applicable to the Services, Client will have the opportunity to meet with Advisor on at least an annual basis to review the matters governed by this Agreement. Implementation of any advice or plan is not part of this contract; however, upon Client’s specific request, Advisor, acting in a sales capacity, may recommend specific investment, insurance, and other products through which the plan and/or advice can be implemented. The purchase of any products may result in the payment of commissions and/or fees that are in addition to fees subject to this Agreement; however, Advisor may not receive transaction-based compensation for implementing investment advice provided to a client regarding his or her employer-provided retirement plan assets.
Client acknowledges that the Services for which Client is retaining Advisor and Commonwealth will be: (Please select only one.)
c A one-time transaction c As needed c Continual and ongoing
*Complete and submit the attached Fact-Finding Questionnaire.
The Services to be performed by Advisor are as follows (Add continuation sheet, if needed.):
This Agreement does not cover any compensation for services to Client outside the scope of this Agreement. Should Client implement any recommendation to purchase products through Advisor, Commonwealth and Advisor may receive additional commissions and/or fees for such transactions, including so-called 12b-1 fees, generally received with respect to the sale of investment products as a Registered Representative and/or an insurance agent; however, Advisor may not receive transaction-based compensation for implementing investment advice provided to a client regarding his or her employer-provided retirement plan assets.
In the event Client chooses to execute securities transactions as a result of the Services, Client may do so through any broker Client deems appropriate. If Client chooses to implement investment advice through Advisor, however, Client acknowledges that Advisor, as a Registered Representative of Commonwealth, may only execute such transactions through Commonwealth. Except as provided under the terms of this Agreement and applicable law, this Agreement does not contemplate Advisor or Commonwealth acting in the capacity of a fiduciary for any trust, estate, individual, or other person or entity (e.g., trustee, executor, personal representative, custodian, guardian, power of attorney, officer, director).
Client has the option to engage Advisor for specific, enumerated services or for ongoing services as may be necessary on a continual basis.
COMPENSATION
By selecting among the options below, Client agrees to pay a fee accordingly.
Rate Options
(Please select only one.)
c Client has chosen to pay an annual fee of $____________________ c in arrears or c in advance
in installments payable c annually c semiannually c quarterly c monthly
commencing on ____________________.
c Client has chosen to pay a flat fee of $____________________ c in arrears or c in advance
c Client has chosen to pay an hourly rate of $____________________. Client understands that, if Advisor has
provided an estimate of the hours involved, the actual number of hours may be greater than the estimate.
Method of Payment
(Please select only one.)
c Client shall pay by check made payable to Commonwealth Financial Network.
c Client shall have payment drawn from Commonwealth account number: ____________________ (nonqualified
accounts only).
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CLIENT ACKNOWLEDGMENT AND CERTIFICATION
Under penalties of perjury, and as required by federal law, Client certifies that (1) the information provided to Commonwealth is true and complete and (2) the tax identification number included in this Agreement is true and correct.
This Agreement contains a Predispute Arbitration clause on page 4. Client acknowledges receiving a copy of this Agreement. Individual Client Information Joint Tenant/Trustee/Officer (if applicable)
Client Name: ______________________________________ Client Name: ____________________________________
or Address: ________________________________________
Entity Name: ______________________________________ City, State ZIP: __________________________________ Address: __________________________________________ Phone Number: ___________________________________ City, State ZIP: ____________________________________ SSN/Tax ID: _____________________________________ Phone Number: _____________________________________ Date of Birth: _____________________________________ SSN/Tax ID: _______________________________________ Signature: ________________________________________ Date of Birth: ______________________________________ Print Name: ______________________________________ Client Signature: ___________________________________ Date: ___________________________________________ Print Name: _______________________________________
Date: ____________________________________________
Consulting agreements involving joint Advisors require signatures of all Advisors. By signing below, each Advisor appoints the other(s) as agent(s)-in-fact to execute any and all amendments to this Agreement on behalf of each of the undersigned.
Advisor Information Advisor Information
Print IAR/RIA Name: ________________________________ Print IAR/RIA Name: ________________________________ Advisor #: _________________________________________ Advisor #: ________________________________________ Advisor Signature: ___________________________________ Advisor Signature: __________________________________ Date: ____________________________________________ Date: ___________________________________________
Advisor Information Advisor Information
Print IAR/RIA Name: _______________________________ Print IAR/RIA Name: _______________________________ Advisor #: _________________________________________ Advisor #: _________________________________________ Advisor Signature: __________________________________ Advisor Signature: __________________________________ Date: ____________________________________________ Date: ____________________________________________
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TERMS OF AGREEMENT
Payment
In the event Client has retained Commonwealth and Advisor for a “one-time” transaction, this Agreement shall terminate upon the later of (a) payment of the full fee by Client or (b) the completion of Services by Advisor. In the event Client has retained Commonwealth and Advisor for services “as needed,” or for “continual and ongoing services,” this Agreement shall continue until terminated in accordance with the termination provisions contained herein. All fees debited from Client’s account will be payable first from free credit balances, money market funds, or cash equivalents, if any, and subsequently from the liquidation of Client’s share of no-load or load-waived mutual funds, equity securities, fixed income securities, and no-load variable annuities, which choice of liquidation shall be at the discretion of Advisor or Commonwealth, as appropriate. Client acknowledges that the custodian of any such account shall have no responsibility to verify or calculate fees.
Client understands that Commonwealth and Advisor shall be entitled to and will share in the fees charged hereunder. Neither Commonwealth nor Advisor shall receive any form of compensation based upon a share of capital gains or upon the capital appreciation of Client assets or any portion of Client’s assets. In the event Client chooses to pay for the Services in advance and such services are not rendered to Client within twelve (12) months thereof, Commonwealth and Advisor agree to refund such fee.
Duties of Client
Client shall notify Advisor of any material changes in Client’s financial situation, investment objectives, or otherwise that may affect the ability of Advisor to provide the Services.
Client shall provide Advisor and/or Commonwealth with all information as either may reasonably request, including corporate resolutions or other documentation as Commonwealth or Advisor may deem necessary, to determine the signatory authority of the individual executing this Agreement on behalf of any entity.
Amendment/Assignment
The parties hereby agree that no assignment of this Agreement may be made without written consent of each party; however, the foregoing shall not be construed to prohibit assignment from Commonwealth to a successor or subsidiary.
Commonwealth may modify the terms of this Agreement at any time upon thirty (30) days’ written notice to the Client. Thereafter, such modification shall be effective unless client provides written notice of termination.
Any notice given under this Agreement shall be in writing and sent to the other party at the address set forth in this Agreement unless the parties are notified otherwise.
Representations of Client
Client represents and warrants that the information contained in Client Profile is true and accurate to the best of Client’s knowledge. Client further acknowledges that it is Client’s responsibility to provide Commonwealth and Advisor with updated information as necessary and that Commonwealth and Advisor have the right to rely on this information.
In making any investment decision related to a securities product sold by prospectus, Client acknowledges that Client shall rely solely on information contained in such prospectus and shall not rely on any information prepared by Advisor and/or Commonwealth as a substitute for information contained in the prospectus.
Nonexclusivity
Client understands that Advisor and Commonwealth perform advisory and/or brokerage services for other customers and therefore Advisor and/or Commonwealth may give advice or take action for those clients that differs from the advice given or the timing or nature of any action taken for Client’s
account. In addition, Commonwealth and Advisor may, but are not obligated to, purchase, sell, or recommend for purchase or sale for Client any security that Commonwealth or Advisor or any of their affiliates may purchase or sell for their own account or the accounts of any other client.
Predispute Arbitration
This Agreement contains a Predispute Arbitration clause. Client agrees that any dispute between Client, Commonwealth, and Advisor, or among all the parties hereto, shall be resolved by arbitration in accordance with the current rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”). By signing this Agreement, the parties agree as follows:
I. All parties to this Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
II. Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited. III. The ability of the parties to obtain documents, witness statements, and other discovery is generally more limited in arbitration than in court proceedings.
IV. The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.
V. The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
VI. The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
VII. The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Agreement.
No person shall bring a putative or certified class action to arbitration nor seek to enforce any predispute arbitration agreement against any person who has initiated in court a putative class action or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until (i) the class certification is denied, (ii) the class is decertified, or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.
Governing Law
To the extent not superseded by federal law, including ERISA, the interpretation and enforcement of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts, without regard to so-called choice of law provisions, in a manner consistent with the Investment Advisers Act of 1940, as amended, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder.
Severability/Waiver of Breach/Entire Agreement
If any provision of this Agreement shall be deemed unenforceable by statute, rule, regulation, decision of a court of competent jurisdiction, or otherwise, the parties agree that such provision shall be construed in a manner as to most nearly preserve its original intent while maintaining its validity and/or enforceability. The invalidity of any part of this Agreement shall not render invalid the remainder of this Agreement and, to that extent, the provision of this Agreement shall be deemed to be severable.
The failure of any party to enforce its rights after breach by another shall not be construed as to consent to the continuation of such breach, nor as a waiver of breach of any other provision of this Agreement.
The parties acknowledge that this Agreement represents the entire agreement among them with respect to the Services and that it shall supersede any other agreement whether written, oral, or otherwise with regard to the subject matter contained herein.
Termination
Any party may terminate this Agreement immediately upon written notice to the other parties hereto, which shall be effective upon receipt by the other parties. Death of Client shall immediately terminate this Agreement. Termination shall not affect Client’s obligation to pay fees through the effective date of termination.
Receipt of Disclosure Documents/Informed Consent
Client acknowledges having received and read this Agreement, Commonwealth’s Form ADV Part 2A Brochure and Advisor’s Part 2B Brochure Supplement, and Commonwealth’s Privacy Policy. Client acknowledges that Advisor has satisfactorily answered all Client questions regarding the Services to be provided hereunder and regarding this Agreement, and therefore Client is executing this Agreement with Client’s informed consent to the terms hereof.
Notice to Connecticut, Maryland, and Nebraska residents:
Because the standard of conduct imposed on investment advisors under the Connecticut, Maryland, and Nebraska securities laws may differ from the standards imposed under other state securities laws, Connecticut, Maryland, and Nebraska residents may be provided additional rights of action other than those set forth herein.
INDIVIDUAL RETIREMENT PLAN BENEFITS REVIEWS
General Provisions
The Participant hereby appoints and retains Advisor to act as an investment adviser, as defined under the Investment Advisers Act of 1940, as amended. Advisor acknowledges that he or she is a functional investment fiduciary with respect to this Participant only.
For investment alternatives available to the Participant under the Participant’s retirement plan, Advisor will recommend an investment portfolio that is consistent with the Participant’s risk profile, investment objective, and individual preferences. Advisor may provide individualized advice based upon the particular needs of the Participant regarding investment management matters, such as asset allocation, overall portfolio composition, or diversification of plan investments. The advice may serve as a primary basis for the Participant’s investment management decisions with respect to Plan assets.
The Participant acknowledges that Commonwealth does not maintain custody of Plan assets and will not be the broker/dealer of record. Furthermore, Advisor is expressly precluded from executing trades or implementing securities recommendations on behalf of the Participant. The Participant agrees not to provide Advisor with any user names or passwords to the Participant’s accounts.
Fiduciary Responsibilities
Advisor shall provide advice to the Participant with respect to the mutual funds (or other investment vehicles) available to the Participant within the Participant’s retirement plan.
Advisor acknowledges that Advisor is an investment advice fiduciary, as defined in regulations issued by U.S. Department of Labor at 29 CFR 2510.3-21(c) under ERISA, to the extent that the Plan is subject to ERISA and the Participant relies on Advisor’s investment advice. Neither Advisor nor Commonwealth, however, is responsible for preventing the Plan’s other fiduciaries from breaching their fiduciary duty or rectifying any such breach.
Participant Data
The Participant acknowledges that neither Advisor nor Commonwealth shall have any liability to the Participant for the Participant’s failure to inform either Advisor or Commonwealth, in a timely manner, of any material changes in the Participant’s financial circumstances that otherwise might affect the advice provided by Advisor to Participant, or for the Participant’s failure to provide Advisor and/or Commonwealth with any information, which either may reasonably request in order to adequately provide services. The Participant acknowledges that Commonwealth and Advisor are relying on the accuracy of the information provided by the Participant and that it is the Participant’s obligation to maintain the accuracy thereof.
Losses
Neither Commonwealth nor Advisor (nor any of their officers, directors, employees, or affiliates) shall be liable for any loss incurred with respect to the Program, except where such loss directly results from Commonwealth’s or Advisor’s gross negligence, willful misconduct, or breach of fiduciary duty. The Plan acknowledges that neither Commonwealth nor Advisor is an agent of each other, and that neither shall be liable for any act or omission of the other or the other’s agents or employees.
Commonwealth and Advisor will indemnify and hold the Plan Sponsor harmless against liability to a third party, or direct expenses (e.g., reasonable attorneys’ fees) that the Plan Sponsor may incur to defend itself against a third-party claim of liability, for Commonwealth’s or Advisor’s gross negligence, willful misconduct, or breach of fiduciary duty under this Agreement. Similarly, the Plan Sponsor shall indemnify and hold Commonwealth and Advisor harmless against liability to a third party, or direct expenses that Commonwealth or Advisor may incur to defend itself against a third-party claim of liability, for the Plan Sponsor’s gross negligence, willful misconduct, or breach of fiduciary duty under this Agreement or any acts or omissions by the Plan Sponsor or its agents (other than Commonwealth or Advisor) in connection with the operation of the Plan.
These indemnification provisions in this section shall survive the termination of this Agreement, which shall be governed and construed in accordance with the laws of the Commonwealth of Massachusetts, unless and to the extent preempted by ERISA.
Rollovers to IRAs
If Advisor provides investment advice to the Plan Sponsor (or Plan Participants) for a retirement plan, Advisor cannot recommend an IRA affiliated with Commonwealth. Advisor may, however, educate Participants concerning rollovers in general and describe the ability to withdraw funds from the retirement plan and to roll over those funds into an IRA, including an IRA not affiliated with Commonwealth. If Participant elects to work with Advisor outside of the Plan regarding the Participant’s IRA assets, Advisor and Commonwealth may receive variable compensation from third parties while working with the Participant.
walthamoffice sandiegooffice
COMMONWEALTH FINANCIAL NETWORK®
FACTS
WHAT DOES COMMONWEALTH FINANCIAL NETWORK® DO WITH YOUR PERSONAL INFORMATION?Why?
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all, sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.What?
The types of personal information we collect and share depend on the product or service you have with us. This information can include:• Account number, address, social security number, birth date • Net worth, assets, income, investment experience
• Account balances, trading history, payment history
• Transactions or credit relationships with nonaffiliated third parties • Medical information (if applying for insurance)
How?
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons why financial companies can share their customers’ personal information, the reasons why Commonwealth Financial Network® chooses to share, and whether you can limit this sharing.Reasons Why We Can Share Your Personal Information Does Commonwealth
Share?
Can You Limit This Sharing?
For our everyday business purposes—to process transactions, maintain your
account(s), respond to court orders and legal investigations, or report to credit bureaus Yes No
For our marketing purposes—to offer new products or services to you Yes No
For joint marketing with other financial companies Yes No
For our affiliates’ everyday business purposes—we may share information about our customers with our affiliated insurance company to process transactions, maintain your account(s), or respond to court orders and legal investigations
Yes No
For our affiliates’ everyday business purposes—information about
your creditworthiness No No
For nonaffiliates’ everyday business purposes—to assist us in obtaining business
or providing account maintenance or customer service to your account(s) Yes No For our affiliates to market to you—to offer new products or services to you No No For nonaffiliates to market to you—we do not sell, share, or disclose your
nonpublic personal information to nonaffiliated third-party marketing companies No No For advisors who leave Commonwealth—if you have a Commonwealth advisor
servicing your account(s) who leaves Commonwealth to join another financial institution, the advisor may retain copies of your personal information so that he or she can continue to serve you at the new firm. In doing so, your advisor may share your information with the new firm but is otherwise required to keep confidential the personal information obtained from you while the advisor was affiliated with Commonwealth, and he or she may use it only to service your account(s). Please note: Certain states require affirmative consent to allow sharing. See below for more on your rights under state law.
In the event that a Commonwealth advisor terminates his or her relationship with Commonwealth, and you want to follow your advisor to his or her new firm, please do not request to limit our sharing.
Yes Yes
To limit our
sharing
• Call Commonwealth’s Compliance department at 800.251.0080, x9603 • Mail your request to Commonwealth Financial Network,
Attn: Privacy, 29 Sawyer Road, Waltham, MA 02453-3483
Please note: If you are a new customer, we can begin sharing your information from the date we provided you with this notice. When you are no longer our customer, we continue to share your information as described in this notice; however, you can contact us at any time to limit our sharing.
Questions?
Call 800.251.0080, x9603, or go to www.commonwealth.com.COMP-20692_01/13
Who is providing
this notice? Commonwealth Equity Services, Inc., doing business as Commonwealth Financial Network®, a dually registered investment adviser and broker/dealer, and its affiliate, CES Insurance, Inc. (collectively, “Commonwealth”), distribute a variety of financial products and services to you through our network of independent registered representatives, investment adviser representatives, and insurance agents (collectively, “advisors”). WHAT WE DO How does Commonwealth protect my personal information?
Commonwealth recognizes the need to prevent unauthorized access to the information we collect, including information held in electronic format, and we protect your personal information in the following ways: • We only grant access to your personal information to parties with whom we have executed
confidentiality/nondisclosure agreements and who need that information to serve you or to assist us in conducting our operations.
• We have physical and electronic safeguards in place to ensure that we comply with our own policy, industry practices, and federal and state regulations.
• Our employees are trained in the proper handling of sensitive information.
• If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
How does Commonwealth collect my personal information?
Commonwealth collects nonpublic personal information from you, as well as from other sources. The sources and the information collected may include:
• Information you provide to us, to our affiliated entities, or to your advisor on applications and related forms, through discussions with our customer service staff, or on our website
• Information regarding your transaction history with us
• Information from other nonaffiliated third parties, including employers, associations, benefit plan sponsors, and other institutions, if you transfer positions or funds to Commonwealth
Why can’t I limit all
sharing? Federal law gives you the right to limit only: • Sharing for affiliates’ everyday business purposes—information about your creditworthiness • Affiliates from using your information to market to you
• Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. (See below for more on your rights under state law.)
What happens when I limit sharing for an account I hold jointly with someone else?
If you have a joint account, we will treat an opt-out direction by a joint customer as applying to all associated joint customers.
DEFINITIONS
Affiliates: Companies related by common ownership or control. They can be financial and nonfinancial companies. • CES Insurance, Inc.
Nonaffiliates: Companies not related by common ownership or control. They can be financial and nonfinancial companies. • This may include insurance companies, broker/dealers, investment advisers, mutual fund companies,
banks, investment firms, third-party administrators, clearing firms, retirement plan sponsors, and other third parties.
Joint marketing: A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• This may include banks, credit unions, or other financial institutions with which we have a joint marketing agreement.
OTHER IMPORTANT INFORMATION
If you live in an “opt-in” state, where we are required to obtain your affirmative consent to share your nonpublic personal information with nonaffiliated third parties who do not currently assist us in servicing your account or conducting our business, your advisor is required to obtain your consent before your advisor can take your information with him or her should your advisor leave Commonwealth.
California residents: For accounts with a California mailing address, we will not share your personal information with a financial company for joint marketing purposes, except as required or permitted by law.
Required: For use with individual qualified plan account advice
Targeting financial comfort in retirement requires planning. This questionnaire is designed to help us create an appropriate action plan that will help you pursue your retirement goals.
Personal Information
Client Name: _________________________ Joint Client Name (if applicable): ________________________ Social Security Number: ________________________ (Client) _________________________ (Joint Client) Year of Birth: _______________________________ (Client) ___________________________ (Joint Client) E-Mail Address: ___________________________________________________________________________ Phone: ___________________ (Home) ____________________ (Work) ____________________ (Cell) Address: _________________________________________________________________________________ Estimated Retirement Age: _________________________ (Client) _______________________ (Joint Client) Occupation: _____________________________ (Client) ______________________________ (Joint Client)
Financial Information
Liquid Net Worth: c $0–$25,000 c $25,000–$50,000 c $50,000–$100,000 c $100,000–$250,000 c $250,000–$500,000 c $500,000–$1,000,000 c $1,000,000+
Annual Income: c Under $25,000 c $25,000–$50,000 c $50,000–$100,000 c $100,000–$250,000 c $250,000–$500,000 c $500,000+ Tax Bracket: ____________% Suitability Information
Number of Years’ Investment Experience: c 0 c 1–5 c 6–10 c 10+
Previous Investment Experience: c Stocks c Bonds c Mutual Funds c Real Estate c Annuities c Other
In how many years do you expect to begin taking withdrawals for retirement? c 1–5 years c 6–10 years c 11–20 c 20+
What is your investment objective?
c Conservative c Moderate Conservative c Balanced c Growth c Aggressive Growth
At what rate do you expect to save for the next 5 years? c The same c Less c More
What are your expectations for household income over the next few years? c The same c Less c More
Do you currently have an emergency fund?
c No c Yes, but it has less than 6 months of post-tax income. c Yes, I have an adequate emergency fund.
FACT-FINDING QUESTIONNAIRE
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Optional: For use with individual qualified plan account advice
Client Name: Joint Client Name (if applicable):
Social Security Number: (Client) (Joint Client)
1) What is your objective for this account? Points
a. Seeking maximum growth potential 4
b. Achieving moderate to substantial growth 3
c. Generating income and achieving slight growth 2
d. Preserving initial investment 1
2) When do you expect to tap into your account?
a. In less than 5 years 1
b. In 6–10 years 2
c. In 11–15 years 3
d. In 16–20 years 4
3) Over the next 10 years, do you expect your income to:
a. Increase considerably? 4
b. Outpace inflation and grow steadily? 3
c. Keep pace with inflation? 2
d. Decline (due to raising children, retirement, slow economy)? 1
4) If the value of your account dropped suddenly by 30 percent, would you:
a. Add to your investments to take advantage of low prices? 4
b. Do nothing and wait for the value to come back? 3
c. Transfer some of your money to more conservative investments? 2
d. Sell all of your investments and move to cash? 1
5) You can live off your current cash savings and investments for:
a. 0–3 months 1
b. 4–6 months 2
c. 7–12 months 3
d. More than 1 year 4
6) How much risk are you willing to take to achieve a potentially higher return?
a. A lot of risk. You are not concerned with market fluctuations. 4 b. Moderate risk. You understand the relationship between risk and reward. 3 c. A little risk. You are concerned about significant market fluctuations. 2
d. None. You are risk-averse. 1
7) How knowledgeable do you consider yourself to be about economic issues, personal finance, and investing?
a. Very knowledgeable 4
b. Somewhat knowledgeable 3
c. Not very knowledgeable 2
What is your investor profile?
7–10: Conservative 11–14: Moderate Conservative 15–18: Balanced 19–23: Growth 24–28: Aggressive Growth
Conservative: Conservative investors seek to reduce short-term losses and to maintain a high level of portfolio stability. This type of portfolio typically seeks to provide a steady current income, while also investing in certain growth-oriented vehicles to keep pace with inflation. An example of a conservative investor might be a retiree or an individual very near retirement age.
Moderate Conservative: The primary objective of moderate conservative investors is to experience some growth while avoiding extreme fluctuations in the market. This type of portfolio typically seeks stability of principal, steady current income, and some growth. Again, an example of a moderate conservative investor might include a retiree or an individual very near retirement age.
Balanced: Balanced investors are long-term investors who are willing to accept some ups and downs in portfolio value over time. They tend to be less inclined than more growth-oriented investors to tolerate short-term fluctuations, however. This type of portfolio is typically balanced between equities/stocks and bonds to provide more growth potential, as well as the potential for steady current income and stability of principal. An example of a balanced investor might be someone who is five to ten years from retirement.
Growth: Growth investors typically focus on long-term results. In return for the growth potential they seek, they accept the potential for increased portfolio risk and more significant market volatility over time. This type of portfolio typically has a greater allocation to equities/stocks than the more conservative options above. An example of a growth investor might be a younger investor who, due to his or her long-term time horizon, can ride out short-term market fluctuations.
Aggressive Growth: An aggressive investor seeks maximum growth potential, which may or may not focus on the generation of current income. This long-term-oriented portfolio is typically invested almost entirely in equities/stocks, with a minimal cash position. It has historically offered the highest level of risk and potential return. An example of an aggressive investor might be a young investor who has no concern for short-term volatility and focuses solely on future growth potential. Individual Client Signature (optional) Advisor Signature (optional)
Signature: ___________________________________ Signature: ___________________________________
Date: _______________________________________ Date: _______________________________________
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