Investment Personality

Would you want to be in this type of investment. Why or why not Would you want to be in this type of investment? Why or why not? Who benefits most from this type of investment strategy? Who would not benefit from this investment strategy?

Conservative Does not tolerate market fluctuations Lose upside potential Need investments as paycheck; tight budget cannot lose money; little time recoup losses Cash & maturity bonds (CDS & Money market) – Fixed Annuities High inflation can hurt them, why???

Moderately Conservative Tolerate a little more risk but cannot take large short term fluctuations Retires, soon to be retired, been hurt by investments in past want to be in the game, mostly defensive fixed income securities, several types of stock (blue chips), real estate return a little more than taxes and inflation

Moderate Long term investment for retirement or college funding MOST INVESTORS want good return will take some risk (be somewhat in line with market – S & P 500) greater returns – have more time bonds to high risk stocks

Moderately Aggressive Taking on more downside risk & have money to contribute Less fixed income investments more aggressive bonds and mutual funds More offensive lose more S & P – gain more More capital gains .. Why?

Aggressive Want substantially outperform markets easily lose 1/3 of money in a few months! small cap, sector stocks or mutual funds (few fixed income mutual funds) Younger – more time; want lots of money fast & have enough income to lose money Lots capital gains