Risk Meter

Risk Meter and Investment Policy Statement

Investor 1:

Investor 2:

One investor full name is required.

Advisor 1:

Advisor 2:

One advisor full name is required.

Critically Important Section. Please Read Carefully.

People often have different risk tolerances for different accounts. The risk you select is only for the accounts that you have listed below. The amount of risk you take likely determines the success or failure of your investing experience.

Select a level of risk that you may be able to endure during very bad circumstances when your friends, family, and the media are all panicking. Examples include the dot com bubble burst of 2000, the financial crisis of 2008, and the coronavirus pandemic of 2020.
Remember how you felt and even more importantly what you did during prior market declines. If you sold when your account fell by 25%, then you may want to consider taking less than 25% Real Risk with these investments.
The Risk Meter is designed to help you decide how much risk you can psychologically tolerate without capitulating by selling your investments. It does not help determine how much risk you can endure from a financial or income need perspective. We recommend a complete financial plan to determine your financial risk capacity, especially if you plan on income from your investments within the next fifteen years.

Historically, your investments are likely to grow more if you select a low amount of risk that you can tolerate without panic-selling rather than a high amount of risk that causes you to buy high and sell low, i.e. mistime the market. Taking a little less risk than you can tolerate may only cause a little lower return each year, but taking too much risk and panic-selling might cost 30% of your investment value in one year.

Please confirm that you have read this carefully.

Confirmation is required.

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Risk Analysis


Institution	Account Number (Last 4)	Account Name	Approximate Value	In or to be in Annuities

			Accounts Total	Annuity Total

				Aligned

One Account value is required.
Value in or to be in annuities is required.

Risk Meter™

Minimum	Maximum percentage that investor(s) are willing to risk and will be able to endure without capitulating Real Risk™ % / Annual approximate average expected rate of return gross of fees Return %	Maximum
0% / 2.5%		50% / 10%
Initial account value minus the dollars at risk Minimum investment value tolerated: $
Level:

Expected Growth at %

Suggested Investments


Risk Level	Investment Real Risk™	Program	Stocks	Risk Mitigator

A plan choice is required

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What percent of stock investment in 4 Alpha (explore) vs. 4 Beta (core)?
	4 Alpha is an actively managed, undiversified, low-turnover equity investment strategy in which clients typically directly own stocks. 4 Alpha			4 Beta is a diversified, low turnover equity strategy in which clients typically own ETFs. 4 Beta
	100%			0%
	75%			25%
	50%			50%
	25%			75%
	0%			100%

A 4 Alpha 4 Beta Equity percentage is required.

Special Instructions:

0 / 1000

Your Risk Meter results may change over time. You might want to take the Risk Meter each year to help make sure that your risk profile accurately matches your risk tolerance. The results are based on generally accepted investment principles, but by no means are you bound by the results or should you consider the results as investment advice. There is no guarantee that any particular asset allocation or mix of funds will meet your investment goals and objectives. All investments involve risks and fluctuations and may lose value over time.

Confirmation is required.

The Risk Meter™, an interactive risk tolerance measurement tool that demonstrates the tradeoff between Real Risk™ and potential return according to assumptions of future stock and bond market returns based on historical performance and expected interest rates. This tool is only designed to help users determine the amount of risk they are willing to take with an investment and make a pledge to themselves to maintain their original plan when the investment declines in value. If an investor is not confident in their ability to stay the course during such a decline, then a lower risk investment should be considered. This tool is only meant to clarify how much volatility an investor is willing to endure, not how much risk they should take based on their resources and goals. A complete financial plan is recommended prior to making any investment decision.

Investments are defined as the investments governed by this investment policy statement.

Real Risk is defined as the percentage decline that may be experienced in an investment based on the historical price history of similar investments. We recommend that investment Real Risk be smaller than each investor’s Real Risk tolerance.

Return is defined as the assumed average annual rate of return gross of fees. Non-linear fluctuations in value are typical for stock and bond markets.

Minimum Investment Value Tolerated is defined as the initial amount invested minus the dollars at Real Risk.

Expected Growth Graph calculations are only an illustration of the power of compounding at a single, specific rate of return. The calculations do not account for the volatility of investment values and returns. The compounding is based on a single return which implies taking the same amount of investment Real Risk throughout the 40-year period. Aging investors often choose less risky investments with lower expected returns. Lower risk investments are likely to earn lower average returns which could cause the Expected Growth Graph to overstate the growth of the investors account value compared to that which most investors will experience.