You can have access to the same profiling questionnaire used by financial planners directly in the comfort of your own home.
Risk tolerance is how emotionally comfortable a person is with taking a financial risk. For example, how much a person is willing for their portfolio to diminish for a chance to make bigger returns. It is psychological and is best measured with a psychometric tool.
I have used used Finametrica for many years for my wealth management clients. It is a world-class risk profiling tool. For more details visit https://www.riskprofiling.com
When you purchase this tool, you will be sent directions to log into the finametrica risk profiling site to complete the questionnaire. This is a series of 25 multiple choice questions and once completed you will be able to access and download your report straight away.
Why have a risk profile?
Having a risk profile will enable you to compare your risk tolerance with your investment strategy.
People usually cannot immediately describe their attitudes to risk, because it is not something that they generally think about. This profile helps to draw out those experiences, feelings and attitudes and guide you in your financial decision-making.
Risk tolerance is a personal trait – partly down to genetics and partly down to life experiences. It is a ‘stable’ part of our personality, which means that over time we tend to stay who we are.