My Risk Number

What is Your Risk Number?

portfolio risk tolerance number

We all look at rewards and risks differently based upon our varying life experiences and personal financial experiences.

The Risk Number is a way to objectively pinpoint individual investor risk tolerance.

The Risk Number questionnaire process was built upon decades worth of behavioral economic work including, but not limited to, the academic framework called  Prospect Theory (Princeton.edu)  which won the Nobel Prize for Economics in 2002.

The Risk Number and corresponding risk/reward range empowers the advisor-client relationship with stated expectations.  Gone are the days of clients and advisors putting their faith in subjective, loosely defined semantics such as moderate, conservative, moderately conservative.

Have any questions?

Fields marked with an * are required

THE RISK NUMBER™ TOOL

Risk Number™ is new technology that identifies your acceptable levels of risk and reward. Using this tool, we ensure that your portfolio aligns with your investment goals and expectations.

With a Personal Risk Number™ You Will:

• Learn About Your Risk Tolerance
• Align Your Portfolio Objectively
• Address Your Retirement Goals

Together we can strive to take the guesswork out of your financial future.

1. Capturing Your Risk Number™

The first step is to answer a 5-minute questionnaire that covers topics such as portfolio size, top financial goals, and what you’re willing to risk for potential gains. Then we’ll pinpoint your exact Risk Number™ to guide our decision-making process.

Review Your Current Investments

A lot of people have more risk in their portfolios than they previously realized. This technology empowers us to make sure the Risk Number™ of your portfolio matches your personal Risk Number™.

2. Aligning Your Portfolio

After pinpointing your Risk Number™, we’ll craft a portfolio that aligns with your personal preferences and priorities, aiming to help you to feel comfortable with your projected outcomes. The resulting proposed portfolio will include projections for the potential gains and losses we should expect over time.

Stress Test Investments

Stress tests illustrate how your proposed portfolio would have fared through various market events over the past 8 years, including the financial crisis and recovery.

Review Risk & Reward Potential

We can visualize the risk and reward profile for each individual investment we propose for your portfolio. Illustrating risk, reward and diversified risk gives us a powerful tool to review before we make any final investment decisions.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

 

3. Addressing Your Retirement Goals

We will also review your progress toward your financial goals by building a personalized Retirement Map.

When we are finished, you’ll fully understand what we can do to increase the probability of success.