Investor Quiz

“It is by asking the right set of questions that
one can truly find the happiness and joy they deserve.”

These questions are based on my firm belief that confidence and peace of mind around investing must be created between your two ears. In other words, confusion, stress and anxiety are the result when we are "in the dark" about important issues. Note: When answering these questions, you must be 100% confident that you know the answer to the question to qualify for a "yes" answer on the quiz.

1. Have you discovered your True Purpose for Money, that which is more important than money itself? (This is the very heart of your sacred values. What is it that you value more than money itself?)
   
   
2. Are you invested in the market? (Do you own stocks, or stock-based mutual funds?)
   
   
3. Do you know how markets work? (While most investors answer that they do have money in the market, very few can honestly say they truly understand the dynamics of how free markets work).
   
   
4. Have you defined your investment philosophy? (Most people do not even know it is possible to have a philosophy when it comes to the field of investing. There are two basic market philosophies: markets work or markets fail).
   
   
5. Have you identified your personal risk tolerance? (This is an academic and scientific number. Remember, you cannot successfully control something you cannot measure)
   
   
6. Do you know how to measure diversification in your portfolio? (Everyone knows it is prudent to diversify, but how do you measure it).
   
   
7. Do you consistently and predictably achieve market returns? (Most people don’t even know what market returns are).
   
   
8. Have you measured the total amount of costs in your portfolio? (Even "fee-only" accounts and no-load mutual can funds contain trading costs and management expenses that aren't necessarily visible to the investor. Do you know what those expenses are?)
   
   
9. When it comes to building your investment portfolio, do you know exactly what you are doing and why? (Investing can be very confusing, even for professionals. Are your results left to chance?)
   
   
10. Do you know where you fall on the Markowitz Efficient Frontier? (Markowitz found a way to evaluate the risk and expected returns of various portfolio mixes. With this knowledge, investors and their advisors can create portfolios with a maximum expected return for the level of risk they are willing to take.)
    
    
11. Are you working with a financial coach versus a financial planner? (A coach will help you answer these questions and help you solve misconceptions about your money.)
    
    
12. Do you have a customized game plan to guide all of your investing and spending decisions? (Most investors can't imagine having such a plan in place. I find it essential for helping investors prioritize and create focus in their lives.)
    
    
13. Do you have an investment policy statement? (This is mandatory for qualified pension plans. If it is good for them, it is also good for you.)
    
    
14. Have you devised a clear-cut method for measuring the success or failure of your investment portfolio? (How do you really know that your investments are providing the right return based on the asset categories you are holding? If someone else is managing your investments, they may have little incentive to provide you with such a system. )
    
    
15. Do you fully understand the implications and applications of diversification in your portfolio? (Do you know how the different investments in your portfolio move with and against each other? If you don't, you may find them all moving down together during the next market downturn.)
    
    
16. Do you have a system for measuring portfolio volatility? (Without this measurement you are flying blind).
    
    
17. Are you aware of the incentives brokerage firms and the financial community have when selling commission-based products?
    
    
18. Do you know the three warning signs that you are gambling and speculating with your money versus prudently investing it? (They are stock picking, market timing, and track record investing – otherwise known as chasing performance).
    
    
19. Can you identify the cultural messages and personal mindsets about investing that destroy your peace of mind? (Money can be a great blessing or a corrosive and divisive burden).
    
    
20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode? (This is the only question you must be able to answer “yes” to now, so that you may work with a coach to transform your investing experience from scarcity to abundance).
    

If you answered “No” to any of the above questions, you are not dealing with a financial coach. To seek your “Peace of Mind” and discover your true purpose for money, simply click the "Contact Us" button on top of the page or click here.

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