Risk Assessment

What's your Risk IQ?

A short questionnaire that measures two things separately — what risk you can afford, and what risk you can live with.

Risk tolerance questionnaire

Two questions decide your portfolio: what it can withstand, and what you can hold through.

MyRiskIQ measures both separately — your Ability to take risk and your Willingness to accept it — in 15 questions, about five minutes.

Before you begin

Understanding Your Personal Risk Profile

These two measures answer different questions, so MyRiskIQ™ scores them separately rather than averaging them into one number.

Risk Capacity — your ability to take investment risk. It considers objective planning factors such as time horizon, withdrawal needs, reliance on portfolio income, liquidity needs, income stability, and flexibility during market stress.

Risk Tolerance — your willingness to take investment risk. It reflects your comfort with uncertainty, market fluctuation, and potential investment losses in pursuit of long-term return.

15 questions
~5 minutes
2 scores: Ability and Willingness

Common questions

Before you start, in case you were wondering

1 What is MyRiskIQ™ used for?

It helps us understand your financial ability to take investment risk and your willingness to accept volatility and loss for a specific account, portfolio, or goal.

2 Does my total score or MyRiskIQ™ automatically determine my investments?

No. MyRiskIQ™ is one input. Your final investment strategy is documented in your IPS after considering your goals, time horizon, liquidity needs, financial situation, tax considerations, restrictions, and other relevant factors.

3 Why do you separate Risk Capacity and Risk Tolerance?

We separate these because they measure different things. Capacity is your financial ability to take risk. Tolerance is your personal comfort with risk. A good investment plan should consider both.

4 What happens if my capacity and tolerance do not match?

We will discuss the mismatch and document how it affects your IPS. Sometimes the final strategy may follow the more limiting factor.

5 What if I want more risk than the questionnaire suggests?

We will discuss the tradeoffs. A more aggressive strategy may be appropriate in some cases, but we need to document why it fits your goals, needs, and circumstances.

6 What if I want less risk than the questionnaire suggests?

That may also be appropriate. A portfolio that you can stick with may be better than one that appears optimal but causes you to sell during volatility.

7 Are the gain/loss examples guaranteed?

No. Any examples are hypothetical and are not predictions of future results.

8 Can my risk profile change?

Yes. Your risk profile may change as your goals, time horizon, income, liquidity needs, family circumstances, or comfort with volatility change.

9 How often should MyRiskIQ™ be reviewed?

It should be reviewed periodically and when material facts change.

10 Does MyRiskIQ™ eliminate investment risk?

No. All investing involves risk, including possible loss of principal.

11 How is MyRiskIQ™ used in the IPS process?

MyRiskIQ™ helps organize the risk discussion before the final Investment Policy Statement is completed. The scores are used as part of the IPS process as follows:

Step 1: Understand the two scores

MyRiskIQ™ produces two separate scores, each on a 0–50 scale. Risk Capacity is your financial ability to take investment risk; it is broader than time horizon alone because it also considers withdrawal needs, liquidity needs, reliance on portfolio income, income stability, and financial flexibility. Risk Tolerance is your willingness to accept investment risk, sometimes described as your comfort with volatility or level of risk aversion.

Step 2: Convert each score into a band

Each score maps to a band: Very Low, Low, Moderate, High, or Very High.

Step 3: Review the Summary Score Grid

The Summary Score Grid combines the Risk Capacity band and Risk Tolerance band to suggest a MyRiskIQ™ risk profile. The suggested profile is a starting point for discussion, not an automatic investment recommendation.

Step 4: Carry the MyRiskIQ™ results into the IPS process

MyRiskIQ™ identifies your Risk Capacity score, Risk Tolerance score, related score bands, and suggested risk profile. It does not, by itself, determine whether the scores are aligned, whether additional planning analysis is needed, or whether the final investment strategy should follow the suggested profile. Any comparison, interpretation, or reconciliation of the results should occur as part of the Investment Policy Statement process.

Step 5: Document the final risk profile and investment strategy in the IPS

The final risk profile and investment strategy should be documented in the Investment Policy Statement after considering MyRiskIQ™ together with your goals, time horizon, liquidity needs, income needs, tax considerations, investment experience, restrictions, outside assets, required return, and other relevant circumstances.

About you

Your information

We use this to attach your results to your client file.

First name *

Last name *

Email address *

Phone *

Account, portfolio, or goal being reviewed Answer the questions that follow based on this portfolio or goal, not necessarily your entire financial picture.

Ability

Risk Capacity

These five questions cover the practical facts of the goal: when you expect to use the money, how long withdrawals may last, how much you may need, how much of your essential spending is already covered by predictable income, and how much flexibility you would have if markets fell.

Question 1 of 15 When do you expect to begin withdrawing from this portfolio?

0–3 years 4–10 years 11–20 years 20+ years

Question 2 of 15 Once withdrawals begin (such as in retirement or to fund a specific goal), how long will they likely continue?

0–4 years / Lump Sum (examples may include education funding or a home purchase) 5–10 years 11–15 years 16+ years / Indefinitely During Retirement

Question 3 of 15 During the withdrawal or distribution phase (when retirement income is needed), about what percent (%) of this portfolio do you expect to withdraw per year?

8%+ per year 6% - 8% per year or don’t know 3% - 5% per year 0% - 2% per year

Question 4 of 15 In retirement, about what percent (%) of your essential living expenses will be covered by predictable or guaranteed sources?

Examples: Social Security, pension, annuity income, etc.

0%–24% 25%–49% 50%–66% 67%–100%

Question 5 of 15 During retirement or the distribution phase, if this portfolio is down ~20% for an extended period, what could you realistically do?

Still must withdraw as planned (limited flexibility) Reduce spending/withdrawals for a period Largely avoid withdrawals (delay retirement/continue working/other sources)

Willingness

Risk Tolerance

Ten questions on how you feel about risk. There are no right or wrong answers — the goal is a portfolio you can realistically stay invested in, so answer as honestly as you can.

Question 6 of 15 Which statement best reflects your attitude toward investment risk?

Prefer to limit losses even if returns are lower Somewhat cautious; accept some fluctuation for higher returns Comfortable with meaningful fluctuation for long-term growth Prioritize long-term returns; accept substantial volatility and risk of loss

Question 7 of 15 The options below describe four sample portfolios and potential gain/loss outcomes over a short time horizon (e.g., 1 year). Which sample portfolio would be most attractive to you?

Portfolio	Potential gain	Potential loss
Portfolio A	16%	-10%
Portfolio B	21%	-15%
Portfolio C	28%	-21%
Portfolio D	40%	-30%

These figures are hypothetical illustrations only and are not predictions of future results.

Question 8 of 15 If this portfolio declined by 20% in a short period, what would you most likely do?

Sell most/all and move to safer investments Sell some / reduce risk Hold and wait for recovery Buy more / increase contributions

Question 9 of 15 What is the largest temporary decline you could tolerate over a year without changing your long-term plan?

0%–5% decline 6%–10% decline 11%–20% decline More than 20% decline

Question 10 of 15 Gain-frame tradeoff — You can choose one:

Sure gain of $50,000 50% chance to gain $100,000 and 50% chance to gain $20,000

Question 11 of 15 Loss-frame tradeoff — You can choose one:

Sure loss of $50,000 50% chance to lose $100,000 and 50% chance to lose $20,000

Question 12 of 15 In general, how would your best friend describe you as a risk taker?

Real risk avoider Cautious Willing to take risks after adequate research Real gambler

Question 13 of 15 How comfortable are you investing in stocks or stock funds?

Not at all comfortable Somewhat comfortable Very comfortable

Question 14 of 15 A relative you didn’t know leaves you $100,000 and requires you to invest it all in one option. You can choose only one option:

Savings / money market / fixed account Balanced fund (stocks + bonds) Diversified stock portfolio Single high-volatility concentrated investment

Question 15 of 15 When you think of the word “risk,” what comes to mind first?

Loss Uncertainty Opportunity

Last step

Review and sign

MyRiskIQ™ is a planning tool designed to help identify Risk Capacity and Risk Tolerance bands. These bands are not, by themselves, a final investment recommendation or finalized risk profile. The final risk profile should be documented in a separate Investment Policy Statement after considering MyRiskIQ™ together with the client’s objectives, needs, circumstances, restrictions, and other relevant factors.

The undersigned acknowledge that MyRiskIQ™ has been reviewed and discussed, should be reviewed or updated periodically as circumstances or objectives change, and does not guarantee investment results or eliminate the risk of loss.

I have read and understand the acknowledgment above. *

Type your full name to sign *

Typing your name above serves as your electronic signature and is recorded with the date and time of submission.

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