Investor Quiz

Investor Quiz



The 20 Must Answer Questions For Your Journey Toward Peace Of Mind


Below are the Must Answer Questions that every investor should have an answer to if they want to achieve investing confidence and peace of mind.  The battle for sound investing is often created between your two ears.  In other words, if you are not an educated investor then you are easily susceptible to fear, anxiety, stress and confusion regarding your important investment decisions.

See if you can answer “yes” to the following questions.  Remember, you must be 100% confident that you know the answer in order for it to qualify as a “yea” answer

  1. Are you invested in the market? (This should be an easy one)
  2. Do you know how markets work?  (Do you understand the underlying dynamics of the market?  If not, you are setting yourself up for stress and anxiety when the markets under perform.)
  3. Have you defined your investment philosophy?  (Do you believe that markets are efficient or do you believe that markets are inefficient?  Does your investment strategy match your investment philosophy?)
  4. Have you identified your personal risk tolerance?  (At what negative return level do you become unable to “hang in there” when markets are down?)
  5. Do you have a system to measure diversification in your portfolio?  (Does owning lots of stocks or mutual funds equal diversification?  Will all of your holdings move down together during the next market downturn?)
  6. Do you have a system to measure the volatility in your portfolio?  (If you can’t measure the risk or volatility then how can you expect to control it?)
  7. Do you consistently and predictably achieve market returns?  (The vast majority of investors don’t.)
  8. Have you measured the total amount of commissions and costs in your portfolio?  (There are often fees and expenses that are not easily visible to the investor.)
  9. Do you have an Investment Policy Statement?  (This is mandatory for qualified pension plans.  If it is good for them it may also be good for you.)
  10. When it comes to building your investment portfolio, do you know exactly what you are doing and why?
  11. Are you working with a financial coach versus a financial planner?
  12. Do you have a customized lifelong game plan to guide all of your investing and spending decisions?
  13. Do you have an Investment Policy Statement?
  14. Have you devised a clear-cut method for measuring the success or failure of your portfolio?
  15. Do you fully understand the implications and applications of diversification in your portfolio?
  16. Do you have a system to measure portfolio volatility?
  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 may be speculating with your money versus prudently investing it?
  19. Can you identify the cultural messages and personal mind-sets about money that destroy your investing peace of mind?
  20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode – where you can live your life rather than obsess about your assets?


A properly education investor should be able to answer “yes” to most or all of these questions.  If you are not able to answer “yes” then give us a call to learn how we can help you become a more educated investor.