The new tool is a collaboration with Australian firm FinaMetrica
Discussion paper examines questionnaires to help assess clients’ risk tolerance and capacity
Clients may not realize they are risk-averse until markets become volatile
Calculator aims to characterize the risk of a portfolio at multiple points and provide more information about the probabilities of different outcomes
The development of detailed standards for risk-tolerance assessment will enhance consumer protection and help advisors and their dealers reduce their exposure to claims and disciplinary proceedings
Investors say market volatility is the “new normal”
IEF survey examines investment decision making
Rating raised to “medium to high” risk
New tool will help advisors better understand their clients' financial mindsets
Show clients how risk can influence their financial future