Broker Check

WHAT IS YOUR RISK TOLERANCE?

As we work together to identify your financial goals and path, it is important to have an understanding surrounding your sentiments towards market conditions and volatility; this enables us to provide feedback and advice uniquely aligned to your personal goals and comfort zone. 

The Risk Tolerance Assessment uses advanced software that converts and quantifies the answers you provide into a “Risk Number.” This number serves as a guide to assess your current investments and further discussion.

Are you interested in finding out your Risk Number?

IDENTIFYING RISK WITHIN YOUR PORTFOLIO

IDENTIFYING RISK WITHIN YOUR PORTFOLIO

As our client, once she receives your Risk Number, we are able to cross reference this result to your current portfolio holdings. Risk is gauged through the following factors:

  1. Return Mode: whether the security is using Beta-weighted, Tactical, Interest Rate, Sensitive, or Average Annual Return return mode. You can find detailed explanations of each of these here
  2. Worst Case: within the next six months, we calculate a 95% certainty that it will perform no worse than this.
  3. Best Case: within the next six months, we calculate a 95% certainty that it will perform no better than this.
  4. Return: the probable return within the next six months.
  5. Volatility: similar to beta, this depicts the potential price action swings in a six month range. 
  6. Annual Dividend: trailing twelve months of normal dividends.
  7. Expense Ratio: the annual expense ratio of the security. 

DISCUSS YOUR RISK NUMBER

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Waddell & Reed is not affiliated with Riskalyze.

(08/20)