Clearwater Wealth Partners
Clearwater Wealth Partners
Investment Risk Tolerance Questionnaire 200 South Sixth Street, Suite 1400
Tax Year / Assessment Period: 2025 · DOC-RiskQuestionnaire-2025-001 Minneapolis, MN 55402
Household Name Clients Date Administered Document ID
Chen Household DOC-RiskQuestionnaire-
Alex Chen & Sam Chen February 10, 2025
(HH-CHEN-001) 2025-001
Assessment Context Triggering Event / Reference
Scheduled pre-retirement risk re-assessment; Annual review + RecID-2025-01 (bucket strategy); IPS amendment
bucket strategy evaluation consideration
Instructions
This questionnaire is designed to assess your household's investment risk tolerance and financial risk capacity. Please review each
question carefully and indicate the response that most accurately reflects your views and circumstances as of the date above. There
are no right or wrong answers — honest responses ensure the most appropriate investment policy and portfolio construction for your
household. Your responses will be used by your Clearwater Wealth Partners advisor to establish or update your Investment Policy
Statement (IPS). Both household members should review and agree on all responses before signing.
Section A: Investment Goals & Time Horizon
Q1 Which statement best describes your primary investment objective for this portfolio?
n A Preserve capital. Protecting principal is my top priority, even if returns are minimal. +2
n B Generate income. I want steady distributions that supplement my current earnings. +4
l C Balance growth and income. I want moderate appreciation with controlled risk. +6
n D Grow the portfolio over time. I accept short-term volatility in pursuit of long-term gains. +8
n E Maximize long-term growth. I am comfortable with significant short-term fluctuations. +10
Q2 How many years until you expect to begin making significant withdrawals from this portfolio for retirement purposes?
n A Less than 3 years +2
n B 3 to 5 years +4
l C 6 to 10 years +6
n D 11 to 20 years +8
n E More than 20 years +10
Q3 How confident are you that your current investment strategy can withstand a major market downturn without requiring you
to change your plan?
n A Not confident. I worry about my ability to stay invested through significant volatility. +2
l B Somewhat concerned. I may need to reduce risk if markets fall sharply or unexpectedly. +4
n C Moderately confident. I can handle short-term losses but have defined limits. +6
n D Confident. I have experienced market cycles and can stay disciplined. +8
n E Very confident. I view volatility as a feature of long-term investing, not a problem. +10
Section B: Financial Situation & Risk Capacity
Clearwater Wealth Partners · Morgan Park, CFP® · Risk Tolerance Documentation — For Advisory Use Only
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Clearwater Wealth Partners
Clearwater Wealth Partners
Investment Risk Tolerance Questionnaire 200 South Sixth Street, Suite 1400
Tax Year / Assessment Period: 2025 · DOC-RiskQuestionnaire-2025-001 Minneapolis, MN 55402
Q4 How would you describe the stability of your household's combined income?
n A Very unstable — significant uncertainty; we rely partly on investment income. +2
n B Variable — one or both incomes are heavily commission- or bonus-dependent. +4
l C Mixed — one stable W-2 salary and one with variable comp (bonus, equity, or self-employment). +6
n D Mostly stable — both are W-2 employees with some bonus or equity component. +8
n E Very stable — guaranteed salaries with no material variable compensation. +10
Q5 How many months of living expenses do you currently hold in liquid, accessible savings outside this investment portfolio?
n A Less than 3 months +2
n B 3 to 6 months +4
n C 6 to 9 months +6
l D 9 to 12 months +8
n E More than 12 months +10
Section C: Market Scenario Reactions
Q6 Suppose your investment portfolio declined 15% in a single year (roughly $75,000–$100,000 on this portfolio). How would
you most likely respond?
n A Sell most or all investments immediately to prevent further losses. +2
n B Significantly reduce equity exposure and shift toward bonds or cash. +4
l C Reduce equity allocation modestly, then monitor the situation closely. +6
n D Hold steady and make no changes, trusting the long-term plan. +8
n E Add to equity positions at lower prices — this is a buying opportunity. +10
Q7 If a severe market downturn caused this portfolio to fall by 30% (e.g., $200,000–$380,000 depending on your current
balance), which response best describes your likely reaction?
n A Sell all investments. I cannot tolerate losses of this magnitude. +2
n B Shift most assets to cash or bonds. The risk feels too great to hold equities. +4
l C Reduce equities somewhat, but remain primarily invested in diversified assets. +6
n D Stay the course without changes. I trust that markets recover over time. +8
n E Invest additional funds. Large declines are long-term buying opportunities. +10
Section D: Loss Tolerance
Q8 What is the maximum annual percentage decline in portfolio value you could realistically tolerate without significantly
altering your lifestyle, sleep quality, or confidence in the long-term plan?
n A I cannot accept any meaningful decline. Capital preservation is essential. +2
l B Up to 5% — minimal losses only. Anything more would cause significant concern. +4
n C Up to 10% — a modest setback in a poor year is acceptable if recovery follows. +6
n D Up to 20% — I understand markets cycle and can stay invested through downturns. +8
n E More than 20% — I have a very long horizon and very high risk tolerance. +10
Clearwater Wealth Partners · Morgan Park, CFP® · Risk Tolerance Documentation — For Advisory Use Only
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Synthetic demo data only. Not for actual investment advice or regulatory filing.

Clearwater Wealth Partners
Clearwater Wealth Partners
Investment Risk Tolerance Questionnaire 200 South Sixth Street, Suite 1400
Tax Year / Assessment Period: 2025 · DOC-RiskQuestionnaire-2025-001 Minneapolis, MN 55402
Section E: Investment Knowledge & Experience
Q9 How would you describe your investment knowledge and hands-on experience managing a portfolio through different
market environments?
n A None — I have little investment experience and would defer entirely to my advisor. +2
n B Limited — I own mutual funds or retirement accounts but do not actively manage them. +4
l C Moderate — I understand stocks, bonds, diversification, and basic portfolio mechanics. +6
Experienced — I follow markets actively, understand risk/return trade-offs, and have managed
n D +8
allocations through market cycles.
Advanced — I have direct experience with tax-loss harvesting, equity compensation, alternatives, or
n E +10
concentrated position management.
Section F: Portfolio Preferences
Q10 Consider the following hypothetical portfolios over a 10-year investment horizon. Which portfolio would you be most
comfortable holding?
n A Portfolio A: Avg. annual return ~3–4% | Worst single-year loss: no more than 5% +2
n B Portfolio B: Avg. annual return ~5–6% | Worst single-year loss: up to 10% +4
l C Portfolio C: Avg. annual return ~7–8% | Worst single-year loss: up to 18% +6
n D Portfolio D: Avg. annual return ~9–10% | Worst single-year loss: up to 25% +8
n E Portfolio E: Avg. annual return ~11–12% | Worst single-year loss: 30% or more +10
Clearwater Wealth Partners · Morgan Park, CFP® · Risk Tolerance Documentation — For Advisory Use Only
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Synthetic demo data only. Not for actual investment advice or regulatory filing.

Clearwater Wealth Partners
Clearwater Wealth Partners
Investment Risk Tolerance Questionnaire 200 South Sixth Street, Suite 1400
Tax Year / Assessment Period: 2025 · DOC-RiskQuestionnaire-2025-001 Minneapolis, MN 55402
Scoring Summary & Risk Profile Classification
Section Category Questions Max Points Score
Section A Investment Goals & Time Horizon Q1, Q2, Q3 30 16
Section B Financial Situation & Risk Capacity Q4, Q5 20 14
Section C Market Scenario Reactions Q6, Q7 20 12
Section D Loss Tolerance Q8 10 4
Section E Investment Knowledge & Experience Q9 10 6
Section F Portfolio Preferences Q10 10 6
TOTAL Q1–Q10 100 58
Score Visualization
10 20 30 40 50 60 70 80 90 100
Score Max Drawdown
Risk Profile Typical Equity Allocation
Range Tolerance
80–100 Aggressive / Growth-Oriented Very high risk tolerance 30%+
65–79 Moderate Growth Growth-focused with meaningful risk capacity 20–25%
n Moderate /
50–64 Balanced approach with controlled risk 15–18%
Conservative-Moderate
35–49 Conservative-Moderate Below-average risk tolerance 10–15%
0–34 Conservative Low risk tolerance <10%
Risk Profile: Moderate (Bucket Strategy
Composite Score: 58 / 100
Preference)
Recommended IPS Allocation: 62% Equity / 33% Fixed
Maximum Drawdown Tolerance: 18–20%
Income / 5% Cash (Bucket Framework)
Prior Score: 54 (Moderate / Conservative-Moderate (2020))
Resulting IPS Document: DOC-IPSAmendment-2025-001
fi Change: +4 points
Advisor Interpretation & Profile Notes
The 2025 re-assessment reflects a deliberate pre-retirement posture: risk tolerance has partially recovered from the 2020 low (+4
points) but remains below the 2016 baseline (-10 points), consistent with the clients' growing focus on sequence-of-returns risk.
Critically, both clients expressed strong preference for a bucket framework that separates near-term income needs from long-term
growth assets. The 62/33/5 allocation with a formal bucket structure is supported by this profile.
Advisor Commentary
Clearwater Wealth Partners · Morgan Park, CFP® · Risk Tolerance Documentation — For Advisory Use Only
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Synthetic demo data only. Not for actual investment advice or regulatory filing.

Clearwater Wealth Partners
Clearwater Wealth Partners
Investment Risk Tolerance Questionnaire 200 South Sixth Street, Suite 1400
Tax Year / Assessment Period: 2025 · DOC-RiskQuestionnaire-2025-001 Minneapolis, MN 55402
This questionnaire was administered at the February 10, 2025 annual review meeting (MtgID-2025Q1-01). Alex (age 41) and Sam (age
40) are 18 years from Alex's target retirement date (2043). The bucket preference identified in this assessment reflects both clients' desire
to see near-term income needs (Bucket 1: 0–24 months, STBIX/cash) ring-fenced separately from growth assets, which materially reduces
the emotional impact of equity market volatility on day-to-day financial confidence. Q5 improvement to 'D' (9–12 months liquidity) reflects
strengthened cash position in ACCT-CASH following the 2023 liquidity event. Q8 remains conservative (up to 5% max annual loss tolerance
in Bucket 1 context), though Bucket 3 assets can tolerate >20% drawdowns. The composite score of 58 supports DecisionID-2025-112 and
the IPS-2025 amendment. The score will be reviewed again no later than December 2026 or upon any significant life event.
Client & Advisor Certification
By signing below, the clients confirm that the responses in this questionnaire accurately reflect their combined household investment
objectives, time horizon, risk tolerance, and financial situation as of the date indicated. The advisor confirms that this questionnaire
was reviewed jointly with both household members and that the resulting risk profile and portfolio recommendation are consistent
with Clearwater Wealth Partners' suitability standards.
Client (Primary) Signature Client (Secondary) Signature Advisor Signature & Certification
_______________________________ _______________________________ _______________________________
____ ____ ____
Morgan Park, CFP® Date: February 10,
Alex Chen Date: February 10, 2025 Sam Chen Date: February 10, 2025
2025
This document is for internal advisory purposes only. Risk tolerance scores are estimates based on client-reported preferences and do not guarantee future
investment outcomes. Clearwater Wealth Partners is a registered investment advisor. Past performance is not indicative of future results. Synthetic demo data —
not for actual advisory or regulatory use.
Clearwater Wealth Partners · Morgan Park, CFP® · Risk Tolerance Documentation — For Advisory Use Only
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Synthetic demo data only. Not for actual investment advice or regulatory filing.
