Risk Questionnaire

This questionnaire calculates two separate measures:

Risk Tolerance: comfort with volatility and likelihood of staying invested during downturns.
Risk Capacity: financial ability to withstand volatility based on time horizon, stability, liquidity needs, flexibility, and loss absorption.

How results are used: Capacity caps risk. If tolerance is lower, the recommended posture may be moderated to reduce the chance of stress-driven decisions.

Risk Questionnaire

Responses

1) If your portfolio declined 20% over a short period, what would you most likely do?

2) During past market downturns, have you ever made significant changes to your investments?

3) Which statement best reflects your preference?

4) How much short-term volatility can you tolerate without losing sleep?

5) Which would bother you more?

6) How confident are you that you can stay invested during a market decline?

7) When is the earliest you expect to need a substantial portion of this portfolio?

8) How stable is your income and ability to save?

9) Do you expect meaningful withdrawals from this portfolio in the next 5 years?

10) Based on your goals and plan, how does your current savings rate compare with what’s required?

11) If markets underperform for several years, how flexible is your plan (spending, retirement timing, savings)?

12) What level of temporary portfolio decline could your plan withstand without impairing long-term goals?

13) How significant are your liquid financial resources relative to your ongoing spending needs?

Additional Context (No Right or Wrong Answers)

14) What feels most uncertain to you right now?

15) I understand how my portfolio is expected to behave during a major market decline.

16) If your portfolio dropped 20% today, what’s the first thing you imagine doing?

17) How much investment risk do you believe you need to take to reach your goals?

18) What’s a risk you regret not taking?

Results