Monday, September 26, 2011

1. Reflection on Questionnaire! :D

     The Investor Profile Questionnaire was very interesting, however, I don't think it's very accurate. Simply because everyone of a certain age will get the same response. I completed the questionnaire and got the Conservative Investor profile.
     With a lot of the questions, I could only have answered with the first or second option. Just because I don't have a job or a family that I have to support.
     I agree that my primary objective is preservation of capital. Because I don't get a lot of money to begin with, so whatever I earn needs to be saved. I also agree that I can't tolerate fluctuating returns for the simple reason that I would need a lot of money returned to me. Also, I have a "relatively short period of time to allow my investments to recover from any negative years", which I also have to agree with.
     I'm not very comfortable with the concept of risk. I enjoy being able to be sure that my hard work will not be in vain. Honestly, I have no use for risk. But, I'm okay with losing a bit of money. I think that the people who can afford to be risky are the people who earn a lot. Because whatever they lose can be replaced more easily than people who earn less.
     I don't really feel that the questionnaire helped situate what my financial goals should be. I think that right now, it's fairly obvious what my goals should be. I don't have any job or anything so it was obvious to me that I would be a Conservative Investor.
     Completing the survey was weirdly difficult. With some questions, I didn't know how to answer them. Like number three: "How would you classify your family's overall financial situation?" I didn't really know which option to choose for that. Even if it's for me. I just found it a weird question for me to be able to answer. I have no savings and I have no dept. When I get older, maybe I'll have both.
     I found the questionnaire really interesting, but difficult to answer because I don't have any job or family to take care of. For someone in my situation, I think the questionnaire was a bit inappropriate. Just because I don't feel like I was able to answer the questions properly. For someone who has to pay for nothing, the questionnaire is pretty much pointless.