Who this is for: Investors before setting or revising an allocation.
Risk profiling considers three things: capacity to absorb loss, need to take risk given your goals, and willingness to tolerate volatility. They frequently differ.
We assess all three, discuss the conflicts, and arrive at a stated risk level that is documented and used as the anchor for allocation.
Profiles are revisited after major life or income changes.
Challenges this addresses
- Risk assumed from age alone
- Capacity and willingness confused
- Profile never revisited
- Allocation inconsistent with stated profile
What the engagement includes
- Capacity, need and willingness assessment
- Structured questionnaire discussion
- Documented risk level
- Allocation implications
- Review after life events