Understanding Risk in Your Financial Plan
Are you avoiding market risk in hopes of preventing short-term losses? While that may feel safer, the greater risk is often not reaching your long-term goals.
Risk isn't one-dimensional. A well-designed plan considers three distinct aspects of risk, each of which plays a role in building a strategy you can stick with.
reflects your emotional comfort with market volatility. Understanding this helps avoid emotional decisions—such as abandoning a strategy during inevitable market declines.
measures how much risk you can realistically afford to take based on factors like time horizon, income stability, liquidity needs, and upcoming withdrawals.
represents the level of return required to achieve your goals. This is determined through financial planning—not a questionnaire—and helps ensure your strategy is aligned with what your goals actually demand.
When these three areas aren't aligned, important tradeoffs may be required. Our role is to help you balance them thoughtfully, so your investment strategy maximizes the probability of success—without taking more risk than necessary.
Client Info
The sections below drive the three independent scores. Answering more questions improves the reliability of the profile.
Risk Tolerance (Comfort)
Risk Capacity (Ability)
Risk Need (Required Return)
Goal-based need (recommended) ?
This computes a rough required return to reach the goal. If inputs are blank, the tool falls back to a short "need" questionnaire.