Human Resources

Investment Personality Questionnaire

The following tool is an Investment Personality Questionnaire designed to assist you in making investment decisions under the Western Retirement PlansWestern Retirement Plans - This includes Western pension plans for members of the Academic staff and Administrative staff. For active plan members, this is the account to which employees and Western are making contributions. Please allow yourself at least 15 minutes to complete the questionnaire. Once you have started, your work cannot be saved and returned to at a later time.

Where you see a word that appears in redDefinitions - Where you see a word that appears in red, an explanation of the term can be found by hovering on the word and reading the pop-up window., an explanation of the term can be found by hovering on the word and reading the pop-up window. (If you are using Internet Explorer, you might have to change the "Compatibility" setting for this feature to work properly.)

You may use this tool in full confidence that your responses to this questionnaire are not being saved, logged or tracked.

Be sure to respond to every question to ensure an accurate assessment. Based on your responses to the questions, at the end, you will be provided with a proposed investment portfolio for your Western Retirement Plan.

If you wish to discuss these results with a Pension & Retirement Consultant, please contact hrhelp@uwo.ca or the HR Communication Centre at x82194.

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Section A:

When investing money for retirement it is important to know how long the investment time horizon is; that is how long you have to invest the money before you will draw an income.

The following two questions will help to establish your investment horizon.

1. When do you plan on needing the money?

  • I’m already retired, I need income right now

  • I plan to retire in less than one year

  • I plan to retire in 1 to 5 years

  • I plan to retire in 6 to 10 years

  • I plan to retire in 11 to 15 years

  • I plan to retire in 16 to 20 years

  • I plan to retire in more than 20 years


2. How do you plan to withdraw the money during retirement?


Section B:

Each investor has a different personal tolerance for risk. There are several different definitions of risk, but it generally refers to the variability of returns from an investment and the chance of loss.

The following five questions relate to your risk tolerance.

3. What is the maximum loss on your portfolio that you can tolerate over a one to two-year horizon?

  • 0%

  • 5%

  • 10%

  • 15%

  • 20%

  • More than 30%


4. You bought 1,000 shares of company 'ABC' six months ago. The investment is currently showing a 30% decline. How would you respond?

  • Sell 1,000 shares

  • Sell 500 shares

  • Do nothing

  • Buy 500 shares

  • Buy 1,000 shares or more

  • I have never bought company shares and don't intend to do so in the future


5. Should your portfolio sustain a significant loss, how long would you be willing to wait to recover the value of your investment?

  • Less than 3 months

  • 3 to 6 months

  • 6 to 12 months

  • 1 to 2 years

  • 2 to 3 years

  • It doesn’t matter, as long as the quality of the investment has not deteriorated


6. Aggressive investors can earn higher returns in the long-term but have to go through periods of potentially large declines in value of their portfolio. I would be willing to sustain potentially large (in excess of 20%) and frequent declines in the value of my portfolio if it increases the likelihood of achieving higher longer term returns.

  • Strongly agree

  • Somewhat agree

  • No opinion

  • Somewhat disagree

  • Strongly disagree


7. The chart below shows the minimum and maximum returns that can be achieved by five different portfolios over a one-year period.

Return Variability Chart

Which portfolio would you choose?

  • Portfolio A (-1% ; 14%)

  • Portfolio B (-2% ; 17%)

  • Portfolio C (-6% ; 22%)

  • Portfolio D (-10% ; 27%)

  • Portfolio E (-14% ; 31%)

  • Portfolio F (-17% ; 35%)


Section C:

Although the overall objective for any retirement savings portfolio is to accumulate savings that will enable a lifetime income in retirement, our investment objectives to achieve this may vary.

The following four questions address possible secondary investment objectives.

8. What is the investment goal of your portfolio?


9. I want a guarantee of the income from my investments, even if I have to accept a lower rate of return?

  • Strongly agree

  • Somewhat agree

  • No opinion

  • Somewhat disagree

  • Strongly disagree


10. I can’t afford any possible loss of accumulated assets regardless of the potential return.

  • Strongly agree

  • Somewhat agree

  • No opinion

  • Somewhat disagree

  • Strongly disagree


11. I want to be sure that I can sell my investments on short notice and access the proceeds from the sale if necessary.

  • Strongly agree

  • Somewhat agree

  • No opinion

  • Somewhat disagree

  • Strongly disagree


Section D:

In determining the appropriate portfolio for you, it is important to consider some additional aspects of your personal situation.

12. What is your familiarity with investing, which includes your knowledge about stocks, bonds, mutual funds, derivatives, income trusts, hedge funds, exchange-traded funds, asset allocation strategies?

  • Starting to learn and/or know nothing

  • Some knowledge

  • Reasonably familiar

  • Sound knowledge of investments

  • Knowledgeable and experienced


13. Does your household have other sources of income (excluding income from the Canada Pension Plan, Old Age Security or Guaranteed Income Supplement)?


14. What is your household income?

  • Less than $25,000

  • $25,000 to $34,999

  • $35,000 to $49,999

  • $50,000 to $74,999

  • $75,000 to $124,999

  • $125,000 to $199,999

  • More than $200,000


15. What are your household investable (financial) assetsInvestable Assets - Investable assets refer to securities that can be sold for money. Income coming from a defined benefit pension plan, for example, cannot be sold to a third party for money so it shouldn't be included for the purpose of this question. (includes stocks, bonds, mutual funds, GICs, employer-sponsored defined contribution plan, RRSP account, RRIF account, real estate held for investment purposes, etc.) ?

  • Under $25,000

  • $25,000 to $49,999

  • $50,000 to $99,999

  • $100,000 to $149,999

  • $150,000 to $249,999

  • $250,000 to $499,999

  • $500,000 to $999,999

  • More than $1,000,000


16. What is your age group?

  • Under 30

  • 30-39

  • 40-49

  • 50-59

  • 60-65

  • 65-71


Your Investment Personality Questionnaire (IPQ) Score is...

Based on your IPQ Score, click on the appropriate portfolio to view the investment details:

SCORE RANGE PORTFOLIO
01 - 16 ......... Balanced Income
17 - 32 .......... Moderate Growth
33 - 48 ........... Balanced Growth
49 - 64 ..... Intermediate Growth
65 - 81 ........ Aggressive Growth