Risk Number System
Frequently Asked Questions
1. How is this questionnaire any different from the ones I've taken in the past? Most financial firms base your risk tolerance on subjective questions. For instance, you answer questions with a 1 to 5 scaled answer where 1 means you strongly disagree and 5 means you strongly agree. The results are scored and you're put in a risk tolerance bracket. Our system looks at the actual dollar loss involved for a potential level of return. It lets you decide, using real dollars, how much you're willing to risk and assigns a specific Risk Number to it.
2. Why do you need the approximate value of my current portfolio? In establishing your Risk Number, the system calculates the risk/reward percentages based on a given return target. However, studies have shown that percentages alone don't fully register the risk involved. Therefore, we convert the percentages into actual dollar amounts, which are easier to compare. In order to do this, we need a number that's close to the average amount of your investments. This way the Risk Number produced is more accurately in line with your real risk tolerance.
3. Who will see the information I submit? The information you submit to produce your Risk Number will only be seen by you and me. It is archived on our secure server in the event you would like us to run a risk analysis on your portfolio to see if it's in line with the Risk Number you produced.
4. What if I only want to get my Risk Number and don't want you to analyze my portfolio? There is no obligation on your part to have your current portfolio analyzed. Once you have your personal Risk Number determined you can stop there. Understand that knowing your risk number is only half the equation. Determining the risk number of your current portfolio lets you see how it lines up with your personal Risk Number. However, you are under no obligation.
5. Can I have you review my portfolio to determine my investment risk number without moving my account to your firm? Absolutely. All we need are copies of your current account statements in order to produce the portfolio risk number report. In it, we can show you the overall risk number of your entire portfolio and the risk number of all underlying accounts. Once the analysis is complete, the report is yours to keep and review.
6. What's the next step after you prepare the portfolio analysis and determine my portfolio's risk number? At your discretion, and assuming the risk number of your current portfolio is out of line, I'll prepare a model portfolio(s) with specific allocation and investment recommendations aligned with your personal Risk Number. This is generally done in conjunction with our enhanced Lifestyle Financial Plan.
7. Are there any costs for this service? There is no cost for getting your personal Risk Number. Simply click the button below, follow the instructions and you'll be able to produce your personal Risk Number in a matter of minutes. If you would like us to prepare an analysis to determine your current portfolio risk number, the cost is $300. It is included with our enhanced Lifestyle Financial Plan for $600. Any fee paid will be refunded if you decide to use any of our management programs within 12 months of preparing the analysis.
If you have any other questions, click the "Ask a question" button below to use our secure inquiry system. If you're ready, click the "Questionnaire" button directly below to get started with the Risk Number questionnaire.