Tolerisk 4.3November 1, 2016
What Cash-flows Are Incorporated in Investor Risk Tolerance Assessment Tools?November 22, 2016
For financial advisors, risk tolerance assessment is not a new concept. For several decades, investment professionals have been working with their clients in order to determine the amount of risk they should be taking with their investments. However, risk tolerance assessment software is a relatively new tool in the investment management industry. There are several software tools available for advisors to choose from, but Tolerisk® stands out amongst the rest for a wide variety of reasons.
The Tolerisk® Difference: Choosing the Right Risk Tolerance Assessment Software For Your Firm
- Computes both willingness and ability to take risk — Competitors offer more simplistic assessments that primarily evaluate personality traits. Tolerisk® uses a scientific computation that evaluates the non-linear relationship between the willingness and ability for clients to take investment risks.
- Computes the probability of running out of money – Tolerisk® incorporates all cash-flows, personality, and 1000+ historical scenarios, along with mortality probability curves. This highly sophisticated analysis even includes second to die mortality probability. While the math behind the scenes is complex, the output to the client is VERY simple!
- Monitors for inconsistency — A risk tolerance assessment questionnaire asks clients a variety of questions in order to determine their risk level. Most questionnaires use a basic evaluation formula, and do not account for inconsistencies in answers. Tolerisk®, on the other hand, identifies inconsistent answers. This allows advisors to discuss those inconsistencies and revise when appropriate.
- Computes risk level over time — The reports generated by Tolerisk® will not only identify the current risk level, but also the likely evolution as the years go on.
- Customizable — All cash-flows can be completely custom tailored to each client’s circumstances. This includes savings across 3 different tax status, capital expenditures, capital inflows, and retirement income.
- Customize reports— Financial advisors have the ability to add their own logo and disclosure documents to the Tolerisk® risk tolerance assessment reports. They can also choose which charts and graphs they would like to include in each client’s report.
- Offers superior support — As with any software, advisors occasionally run into the need for assistance. Tolerisk® not only has numerous helpful tutorial videos and a comprehensive user guide, but also on-screen support also is readily available.
- Includes a glossary of terms — In order to eliminate confusion and to improve overall clarity, Tolerisk® includes a glossary of terms that is designed to help clients as they review their risk tolerance assessment.
- Cloud-based software — This allows advisors to access Tolerisk® from their preferred device, whether it’s their desktop computer in the office or their tablet while doing business on-the-go.
- Free trial is available — The best way to know if any type of software tool is the right choice is to try it out first. A free trial of Tolerisk® is available for those who are interested.
- Patent pending on software — This innovative, scientific approach to risk tolerance assessment cannot be found anywhere else!
To learn more about the features of Tolerisk®, the latest software updates and how it can benefit your firm, begin your free trial of this innovative risk tolerance assessment software today!