Broker Check

What’s Your Risk Number?

When I think about risk tolerance, my mind goes to all the different risk questionnaires I’ve seen and used since becoming an advisor in 2003.  No two questionnaires are the same and none seem to accurately gauge a person’s “real” aversion or tolerance for risk.

Quo Vadis Financial uses Riskalyze, a state-of-the-art, award-winning risk profile software to help pinpoint your level of risk. It’s free, painless and takes only a few minutes. Approximately 80% of investors carry more risk in their portfolios than they realize, so we can help you get your investment portfolios closer to your actual risk level.

For me, Riskalyze changes all of that. Riskalyze is a game-changer. I am so much better equipped to help clients truly understand and assess risk in a compelling way.

Warren Buffett said, “You only have to do a very few things right in your life so long as you don’t do too many things wrong.” Using Riskalyze helps me ensure a client’s risk tolerance isn’t one of those things we’ll get wrong any longer.

Traditional risk questionnaires are widely known to be very subjective. In fact, Rob Brown, in his article Risk Tolerance Questionnaire Failure, noted,

“Today, it is widely appreciated that risk tolerance is not a clean, crisp economic factor … instead, it is understood to be a fundamental psychological trait. As a psychological trait, it is inconstant, nondurable, and ever changing … how one scores on a risk tolerance questionnaire will depend heavily on the recent investment market returns and volatility experienced by the investor. In essence, risk tolerance questionnaires are heavily emotion-driven.”

What I love about Riskalyze is how quickly and easily clients gain a much better understanding of risk without any emotion whatsoever. When they see their Risk Number, they usually aren’t surprised. Riskalyze helps me find and make recommendations tailored to that client’s appetite for risk.

If you haven’t gotten a risk score yet, all you need to do is click the “What’s your risk number?” button on this page. It will take 10-15 minutes to complete and is very easy to do. Once you have your risk score, if you want to discuss it with me or if you want to see the risk score for your actual investments, please remember to leave your phone number on the last page of the risk analysis…it’s that simple!

Got your Risk Number? Now what?

We will sit down with you, your Risk Number and your portfolio to figure out what’s best for you. Below are samples of what we can do with your Risk Number:

Riskalyze Investment Roadmap (Sample PDF)