Michael T. Jordan, CFP Financial Advisor Portfolio Manager Money Personality Questionnaire Each of us has specific feelings, attitudes and values toward finances and investing our own money personality. Values guide decisions. It is very common for money personalities to get in the way of making good financial choices. A study published by the American Psychological Association found that money was the #1 source of stress for 73% of Americans. Family money problems can result from value conflicts, unrealistic goals, the emotional use of money, or simply a lack of planning. Understanding and identifying what drives our decisions regarding money can help us improve our chances of financial success. The ultimate goal is not necessarily to change our money attitudes or values, but to prosper with the ones we have. For more information please visit: http://fa.morganstanley.com/michael.t.jordan/ Morgan Stanley Wealth Management, 3737 Glenwood Avenue, Suite 320, Raleigh, NC 27612, 919-881-2251 Page 1
Please indicate your level of agreement with each of the following statements: I enjoy discussing investments with friends and acquantances. I believe in taking big risks if the potential payoff is high. Buying something new always makes me happy. You can't take it with you, so you may as well live it up while you can. It is important for me to know exacly how I am invested and why. I get very nervous and confused thinking about investing. I like to hear about hot investment topics. A 12% decline in my portfolio would cause me considerable stress. Investing frightens me. No matter how much you have, you can always use more. It never helps anyone to worry about money. I am not interested in abstract concepts or ideas. I am comfortable with an investment that may take over 10 years to provide a return. Money provides security. Money does not come easily, so we need to be careful with it. I enjoy reading about and studying difficult material and complex topics. I feel good about having money set aside for the unexpected. I don't like to think about money. I get a thrill out of investing. I feel regret about my past investment losses. I am satisfied with my current level of income. For the prospect of higher returns in the long run, I can tolerate paper losses for several years. I enjoy what I do for a living and can't imagine ever giving it up completely. Other people consider me to be careful with my money. I dream of a retirement that allows me to spend more money on the things I enjoy. Generally, I prefer investments with little or no fluctuation in value, and I'm willing to accept the lower return associated with these investments. My knowledge of investing is above average. I am more concerned about my investments losing value than gaining. It is important that I leave a financial legacy for my children/grandchildren. The future will take care of itself. A loss of $120,000 on a $1 million portfolio is unacceptable. I dislike change. My current lifestyle is more than sufficient for me. Stocks are like a form of gambling. I generally check the value of my investments at least monthly. I like to keep up with the financial news. There are many things more important than money. I get more satisfaction from saving than from spending. I have specific financial goals. When it comes to finances, I don't sweat the small stuff. Strongly DISAGREE Somewhat DISAGREE Somewhat AGREE Strongly AGREE Page 2
Finding the Meaning of Money and Defining the Goals We can better define our life goals and meaning if we first identify how we developed our relationship to money. The first two stages, innocence and pain, involve identifying events in our early years that now trigger the manner in which we react to the money events in our lives. During the stage of innocence, we are unaware of money, but slowly come to the realization that money does matter. The manner in which we learn can bring pain to our life, and shape how we react to situations in the future. Answer the following questions: 1. What are your three earliest memories of money? 2. When and how did money first enter in your relationship with your parent(s)? 3. Are there any family stories about money? 4. Did you ever worry about money? 5. Name money experiences that affect you today. 6. When did you first realize that you would have to work for a living or find other ways to obtain money? 7. When you were growing up, did you ever make a vow about money? 8. What difficult experiences do you feel about money in your current life? The third and fourth stages of money maturity are knowledge and understanding. As you come to understand how your money personality developed, you can better equip yourself in how to handle situations that affect your triggers. Many people feel guilty or apprehensive about money. Learning to accept these feelings and realizing that money also has many virtues is an important step toward developing a healthy relationship with money. Answer the following questions: 1. When you make a purchase, do you feel gratitude? Are you concerned that you spent too much, feel guilty about the purchase, or that you were taken advantage of? Page 3
2. When you pay someone for services, do you feel guilty that maybe you paid too much or too little, or do you feel gratitude for the work they did? 3. Do you feel integrity with money? For example, do you pay your fair share for meals with friends? Visualize the following scenarios: 1. Imagine that you have unlimited resources from this day forward and that money is of no concern. What would you do? 2. Imagine that you have an illness that has absolutely no symptoms, except that you will die suddenly in five to seven years. What would you do with the time you have left? 3. Imagine that you are going to die in 24 hours. What regrets do you have? What do you wish you would have done? In the chart below, fill in the things that you Got To have, do, or be: the things you Should have, do, or be; the things you would Like To have, do, or be. I ve Got To I Should I d Like To Have Do Be Page 4
The final three stages of money maturity are vigor, to help you achieve you goals; vision, the ability to see how you and your goals relate to the wider world; and aloha, the passing of wisdom, compassion, and generosity with others. These stages come naturally if you have been true to knowledge and understanding as you develop your goals. On the following page, list goals you would like to achieve and by when. We will track these goals yearly along with your progress toward these goals. Our job is to identify what it will take for you to reach these goals. Your job is to make certain that these goals are true to your desires. Remember, the goals can and will change, and adjustments can be easily made as changes occur. Answers and Notes Page 5
1 week 1 month 3 months 6 months 1 year 3 years 10 years 20 years lifetime Family Relationship Health Career Creativity Community Spirit You name it You name it Page 6
Answers and Notes Continued... Page 7
The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Wealth Management or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any apinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER and federally registered CFP (with flame design) in the U.S,which it awards to individuals who successfully complete CFP Board s initial and ongoing certification requirements. Morgan Stanley Smith Barney LLC offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please visit us at http://www.morganstanleyindividual.com or consult with your Financial Advisor to understand these differences. Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness. Morgan Stanley Smith Barney LLC. Member SIPC. CRC 2072471 04/18 Page 8