Your Risk Profile

Risk Profile

Before You Begin – Investing with Clarity and Conviction

At MAGAC Financial Planning, we don’t just help you invest, we help you understand your investment journey. Before completing this risk profile, it is vital to have reviewed the 30-year Vanguard Index Chart with your MAGAC Financial Planning approved adviser.

This powerful visual tells a compelling story: markets rise and fall, but they recover and those who stay the course often reap the greatest rewards. From the sharp downturn following the 1987 crash, through to the early 1990s recession, the global financial crisis of 2007 and the low point in 2011, we’ve seen history repeat itself in cycles of challenge and recovery. These weren’t brief dips; they were extended bear runs lasting up to four years. But they weren’t the end of the story.

Completing this profile isn’t just about how you feel today, it’s about anchoring your choices in a clear-eyed view of what markets do over time.

MAGAC Financial Planning Pty Ltd is a Corporate Authorised Representative No. 1296281 of CCAFP Wealth Pty Ltd, ABN 56 659 188 655, AFSL 540531.

Important: If you are completing this with your spouse and/or partner and your answers differ, we recommend each of you complete an independent questionnaire to ensure both viewpoints are clearly represented.

Your risk profile

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Risk Profile: Quantitative questions

These questions will help your adviser to confirm their assessment of how you view volatility risk and can tolerate this. The answers to your questions will be recorded and attached to your completed and signed Fact Find document.

1. How familiar are you with investment markets?

Very little understanding or interest

Not very familiar

Experienced enough to understand the importance of not ‘putting all your eggs in one basket'

I understand that markets may fluctuate and that different market sectors offer different income, growth and taxation characteristics

I am experienced with all investment classes and understand the various factors that may influence performance

Pick the answer that best describes how you feel about investment markets

2. Have you ever invested a significant amount of money into an investment that fluctuates up and down in value? How did this make you feel?

Yes, the fluctuations made me very uncomfortable

Yes, the fluctuations made me quite uncomfortable

No, I have never invested in this type of investment

Yes, I was quite comfortable with the fluctuations

Yes, I was very comfortable with the fluctuations

Pick the answer that best describes how you feel about market fluctuations

3. How would you describe your willingness to take financial risks?

Very low risk taker - I am not willing to take on any additional level of financial risk, even if there is the potential to gain a higher rate of return over the longer term

Low risk taker - I am willing to take on a slight level of financial risk, if there is the potential to gain a slightly higher rate of return above my bank account over the longer term

Average risk taker - I am willing to take on a moderate level of financial risk, if there is the potential to gain a moderate rate of return over the longer term

High risk taker - I am willing to take on a high level of financial risk, if there is the potential to gain a higher rate of return over the longer term

Very high risk taker -I am willing to take on a high level of financial risk including different lending/investment alternatives if there is the potential to gain a higher rate of return over the longer term

Pick the answer that best describes how you feel about financial risks

4. Which is the most important to you in regards to investing?

I would prefer to preserve my capital and am willing to accept this may mean my investments will not keep up with inflation

I would prefer to preserve my capital. However, I would aim to achieve investment returns that keep up with inflation

I would be willing to accept low levels of fluctuation common to growth asset values in the short term, with the aim of achieving investment returns that marginally exceed inflation over the long term

I would be willing to accept moderate levels of fluctuation common to growth asset values in the short term, with the aim of achieving investment returns that exceed inflation over the long term

I would be willing to accept high levels of fluctuation common to growth asset values in the short term, with the aim achieving investment returns that significantly exceed inflation over the long term

Pick the answer that best describes how you feel about investing

5. How much could your investment fall in value over a short term period before you feel uncomfortable?

I would be uncomfortable with any fall in the value of my investments

Up to a 5% fall in value

Up to a 10% fall in value

Up to a 25% fall in value

Up to a 50% fall in value

Pick the answer that best describes how you feel about short term volatility

6. What would your reaction be if your portfolio value decreased substantially, mainly due to adverse market conditions?

Security of my capital is critical and I do not intend to take risks

I would cut my losses and transfer my funds to more secure investment sectors

I would be concerned, talk to my adviser and would wait to see if the investments improve

This was a risk I understood – I would leave my investments in place expecting performance to improve

I would invest more funds to take advantage of the lower unit/share prices expecting future growth

Pick the answer that best describes how you feel about market volatility in general

7. Which of the following best describes your general feeling after making a significant financial decision?

Very concerned about possible losses

Concerned about possible losses

Neutral. I would be slightly concerned about losses but also optimistic about potential gains

Optimistic about potential gains

Very optimistic about potential gains

Pick the answer that best describes how you feel making financial decisions

Risk Profile: Qualitative questions

Please complete the following fifteen questions to the best of your knowledge and experience

1. What does money mean to you?

2. How much money is enough money for you?

3. What do you understand by the word “risk”?

4. Would you be prepared to take more risk to have more money and how much risk would you be willing to take to have more money?

5. When it comes to taking risk with your money, what are you afraid of, or what scares you by taking on more “risk”?

6. What is more important to you, having more income from your investments or having more capital growth in the value of your investments – and why?

7. What is more important to you, to save, to spend or to invest – and why?

8. If you saved $1 Million dollars, what would you do with it and why?

9. If I gave you $1 Million dollars, what would you do with it and why?

10. If I gave you $100,000 dollars instead, what would you do with it and why?

11. How good are you at saving and how do you achieve your savings?

12. How good are you at spending and how do you choose to spend?

13. “Risk is a fear which disappears over time and as you become more educated about your money, your investments and what you want to get out of your life”. If this statement were true, would you be willing to take on more risk and why?

14. “Investing is a choice which evolves over time. As you become more educated about investments, your desire for income, your interest in capital growth and the impact of tax on what you get from your investments will change over time”. If this statement is true, what kind of investor do you want to be and why?

15. Beyond thinking about money, taking investment risks or getting higher financial returns – what are your life goals and lifestyle aspirations? OR What lifestyle returns do you need to have a truly fulfilled life and what life risks are you willing to take to have the ideal life you want? What does money mean to you?

About You & Your Partner

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Risk Profile

Before You Begin – Investing with Clarity and Conviction

Your risk profile

Risk Profile: Quantitative questions

Risk Profile: Qualitative questions

About You & Your Partner

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