1. Have you discovered your True Purpose For Money, that which is more important than money itself? Yes No
2. Are you invested in the stock market(s)? Yes No
3. Do you know how free markets “really” work? Yes No
4. Have you defined your investment philosophy? (Markets work/don’t work – active v. passive?). Yes No
5. Have you defined your personal level of risk tolerance – how much you can lose in any one or more yrs? Yes No
6. Do you know how to accurately measure diversification in your portfolio? Yes No
7. Do you consistently “beat the market” or achieve at least market rates of return? Yes No
8. Have you measured the total amount of commissions, fees and “all” internal, non-reported costs in your portfolio? Yes No
9. Do you know where your portfolio falls on the Markowitz Efficient Frontier? Yes No
10. When it comes to building your investment portfolio, do YOU know what you are doing and why? Yes No
11. Are you working with an Investor Coach rather than a financial planner, broker or advisor? Yes No
12. Do you have a customized, life-long game plan to guide all of your investing and spending decisions? Yes No
13. Do you have a written Investment Policy Statement and do you know it’s function? Yes No
14. Have you devised a clear-cut method for measuring the success or failure of your portfolio and have you chosen an appropriate benchmark to measure performance against? Yes No
15. Do you fully understand all of the implications of diversification in your portfolio and the difference between “diversifiable” and “non-diversifiable” risk? Yes No
16. Do you have a “scientific system” for measuring your portfolio’s risk (volatility/fluctuations) and do you know it’s specific measured number? Can you control something that you have not measured? Yes No
17. Do you know the specific, long-term expected rate of return for your portfolio? Yes No
18. Do you know the three warning signs that you are gambling and speculating with your money rather than “prudently” investing it? Yes No
19. Do you know the optimal withdrawal rate for your portfolio at retirement and its probability of “success?” Success being defined as not outliving your money! If so, what type of analysis have you done? Yes No
20. Are you ready to shift your personal experience of life and investing/money from one of scarcity to abundance (meaning: more time, more pleasure & enjoyment, more peace of mind). Yes No
Scoring: Give yourself 5 points for every YES answer.
90-100 Amazing Investor. Congratulations. You are among the most educated, diligent and confident of investors. Now is the time to support your current knowledge with discipline and educational reinforcement.
70-80 Better Investor. You’ve been around the block a time or two and maybe had some less than successful investment experiences. Now is the time to expand your knowledge about investing and begin to make some solid choices about your financial future. To achieve this, seek answers to the questions you missed.
50-60 Common Investor. You are hardly alone! Like many investors, you often find yourself uncertain and confused about how to make the correct investment choices. If you don’t already have an Investor Coach that you trust completely, now is the time to build a relationship to last a lifetime.
30-40 Discouraged Investor. It’s easy to feel discouraged when you have been making what you thought were the correct choices with your investments without success. You may have followed all the advice you’ve read and heard in the media and yet not achieved the expected success. Increase your investing I.Q. and find out why these methods have failed to work for you.
0-20 Frustrated Investor. Confused, you may wonder where to begin – how it is even possible to wade through all of the information that you are being bombarded with daily. Sort through the chaos and find a path that is right for you. Begin by finding the answers to this quiz!
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Acknowledgement: special thanks to Matson Money for their contribution to this list of questions.
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