Risk Tolerance Profile Questionnaire

FinaMetrica Risk Tolerance Profile 

A psychologist, Daniel Kahneman was awarded the 2002 Nobel Prize in Economics for pointing out what some of us intuitively knew already: people dislike losing money more than they like making money.

Dislike of financial loss is the reason I give all of my new clients a risk tolerance questionnaire to complete. For I do not want to build them a portfolio that is 80% stocks, which might lose 30% in a bad year when the client’s risk score indicates they would sell everything if it dropped even 5%.

Disdain for loss can also hinder a client from wanting a portfolio at all, for fear it might not grow fast enough to reach their fiscal goals. As their financial adviser, I need to alert my clients to possible pratfalls and give them solutions: save more, take more risk, or spend less, depending on each client’s individual situation.

Risk Tolerance Profile

Why Risk Tolerance Is Important

For some people nothing feels worse than seeing their account drop; conversely for others they regret losing out on potential gains. Perhaps the first investor’s portfolio was too hot while the second was too cold.

  • By generating a personalized assessment of your risk tolerance, FinaMetrica’s risk profiling system provides you an opportunity to gauge of your current investments are too hot or too cold.
  • The assessment is web-based consisting of twenty-five questions with eight optional demographic questions. It takes only fifteen minutes to complete. Upon completion, you receive a detailed report that includes your risk tolerance score.

For a free, independent, and unbiased review of your risk tolerance, contact me.

Risk/Return

  • After you receive your score, I can transfer it to FinaMetrica’s asset allocation mapping system and convert your risk score to a portfolio.
  • I then usE fi360’s Proposal Report to compare your current investments to a portfolio generated by your risk tolerance score.

Please send me an email with subject line risk score at tim.hayes@cambridgeresource.com to take the assessment. When I get your email. I will email you back a link that has a username and password for the www.riskprofiling.com site.