Your approach to investing
Our Investment Personality Assessment is one of the ways our advisors get to know you–to understand your goals and priorities. The following four questions will give you a sense of the full assessment and help us provide you with additional insights and resources.
When it comes to your family, are you confident there will be enough financial resources for the rest of their lives?
Why are we asking this?
The resources you dedicate to family members will have a direct effect on your own financial life. Do you have a special needs child, a spouse or parent who will need care for the rest of their lives? Beyond your family's essential needs, do you want to give more, like funding your grandchildren’s education, or helping your children make a down payment for a house or fund a business?
What about the rest of your life? Do you think you’ll have enough financial resources for everything you want or need to do?
Why are we asking this?
In the 2013-2014 Merrill Lynch Investment Personality Assessment research, nearly half of our surveyed clients are concerned that they don't have enough to sustain their wealth throughout their lives. How about you? Do you have enough for your own goals? Are you giving too much to family members or the community without considering your own future needs? Financial independence can be empowering for you, your family and the community.
How about supporting your lifestyle? Does providing for those needs affect how you invest now and in the future?
Why are we asking this?
In the 2013-2014 Merrill Lynch Investment Personality Assessment research, 89% of our surveyed clients say their primary intent for investing is to provide for their lifestyles. It's important to understand your own lifestyle needs now and in the future, from home expenses to health care to travel. This will help in determining an appropriate strategy to help you pursue your goals. And by revisiting your needs on an ongoing basis, we can help you course-correct along the way and adjust your strategy as needed.
What about others? Are you familiar with all of the different ways you can structure your giving?
Why are we asking this?
Once you've established the amount of money you need and have invested to help you pursue your goals, you may be interested in exploring ways to give money to family or the community. Philanthropic efforts open the door to a diverse set of opportunities, from tax optimization to maximizing the value of the gift. Your choices can benefit you, the recipients as well as promote stewardship rather than dependency.
What your answers reveal
Want to dive even deeper? Share your results with one of our financial advisors.
Question 1
Things to consider:
• Talk with your family and find a common set of financial values to help sustain your wealth.
• Reexamine how your wealth is structured and whether resources are protected.
• Establish a strategy that works for your goals.
96% of clients say that family is the most important part of their lives.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Things to consider:
• Evaluate your own financial situation.
• See if you have resources left over to provide to family members in need.
• Examine trade-offs that can be made as well as potential investment strategies.
92% of clients feel that their own finances should be in order before giving to family or the community.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Question 2
Things to consider:
• Identify dollar amounts and timing as they relate to your lifestyle.
• Evaluate how much you need to set aside to pursue your goals.
• Examine how much you have left over and if there are other goals you may have.
81% of clients feel that they can adjust their lifestyles to accommodate changes in the value of their investments.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Things to consider:
• Know the primary intent for your money, now and for the future.
• Make sure you are dedicating your resources toward that intent.
• Phase out secondary commitments, even if that means sending kids to public school rather than private.
49% of clients are concerned that they are not investing enough for their futures.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Question 3
Things to consider:
• Identify life changes, birth of a child, buying a home, retirement.
• Invest accordingly, create a college fund, prepare a down payment or a strategy for retirement.
• Prioritize how much you'll need and when.
73% of clients feel their investment yields, dividends or returns will cover their lifestyles.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Things to consider:
• Evaluate your risk levels to ensure they are in line with your goals.
• Ensure you have enough liquidity to draw from or to invest when the opportunity is right.
• Review your portfolio on a regular basis and rebalance as needed.*
*Rebalancing does not ensure a profit or protect against loss in declining markets.
78% of clients find the ability to withdraw money from their investments appealing.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Question 4
Things to consider:
• Review your giving structures annually, so they evolve with you.
• Establish key collaborators to help constructively challenge your thinking.
• Stay up to date since opportunities are constantly changing.
28% of clients are interested in leaving a substantial sum of money to a charity or nonprofit.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
Things to consider:
• Know ways to give whether it's to a partner, parent, child or organization.
• Understand ways to structure your wealth to optimize giving.
• Revisit goals annually to see if structured giving becomes more relevant.
68% of clients enjoy giving money to charities or nonprofit organizations.
Merrill Lynch Investment Personality Assessment (IPA) research, 2012–2013
