The First National Bank of Mount Dora

Account Classification: The optimal portfolio of investments requires an awareness of the goal and the level of risk a customer is willing and able to assume to achieve that goal, from extremely conservative to highly aggressive.

Asset Allocation: Once the level of risk is determined, we can allocate assets to create an appropriate portfolio. This process is spreading your money among different markets and is critical to your investment performance as it can substantially reduce risk and may enhance your returns over time.

Allocation among appropriate asset classes will have a major impact on investment returns (90%) over time. We believe the proper role of the professional trustee is to establish strategic asset allocation for the long run based upon client requirements and risk tolerance and to revisit the allocation decision periodically, in light of developments affecting the beneficiaries and the investment markets.

The target percentage in each of the following ranges will vary based upon current circumstances. If you desire our current percentages, please call the Trust Department at (352) 383-2140 or E-Mail us at trust@fnbmd.com.

	Willingness to Take Risk (7 Questions)

	1. With which of the following investments would you feel most comfortable?
	Stocks Bonds Certificates of Deposit

	2. What is the factor you consider most important before choosing an investment?
	Growth Income The safety of principal

	3. In light of other sources of income you may have, how would you like to use earned income?
	Reinvest at least 80% Reinvest up to 80% Receive at least 80%

	4. Rank the importance of beating the stock market over an economic cycle.
	Very Important Somewhat important Not Important

	5. Rank the amount of decline in principal you could tolerate in the short term (less than one year)
	10% loss or more 0 - 10% loss None

	6. How Important is protection of principal to you?
	Not important Somewhat important Very important

	7. How important is the pursuit of capital gains to you?
	Very Important Somewhat important Not Important


	Ability to Take Risk (7 Questions)

	1. What is your current age?
	Younger than 45 45 - 65 Over 65

	2. What is the current value of your investment portfolio?
	More than $1,000,000 $500,000 - $1,000,000 Less than $500,000

	3. What is the amount you are currently looking to invest?
	More than $1,000,000 $500,000 - $1,000,000 Less than $500,000

	4. What is your annual income (including interest income)?
	More than $100,000 $50,000 - $100,000 Less than $50,000

	5. Which of the following best describes your attitude toward your income needs?
	I can forego at least 10% of my current income Present income is adequate for my needs I need at least 10% more income

	6. How many months of living expenses could be safely covered by your current liquid investments?
	More than 12 months Between 4-12 months Less than 4 months

	7. How far in the future would you have to anticipate the need to withdraw more than 20% of your portfolio?
	More than 10 Years 3 - 10 Years Less than 4 months