The first video in the Tolerisk® Tutorial Series, this video will introduce you to Tolerisk®, show you how to sign up, manage your account, and configure your settings.
The second video in the Tolerisk® Tutorial Series, this video will walk you through how to start a new Risk Assessment, and introduce the Willingness Questionnaire portion of the assessment.
The third video in the Tolerisk® Tutorial Series, this video uses an example to introduce the inputs on the Ability and Assumptions pages. This simple example will give you an understanding of the workflow you will utilize with your clients.
The fourth video in the Tolerisk® Tutorial Series introduces the various tools to help you analyze the results of the Risk Assessment, including the different Charts, the Sensitivity Analysis, and the Scenario Analysis. It will also show you how to generate a PDF report that you can give you your client.
Send your client a link to allow them to fill out most of the information in advance of your meeting. Once received, you can analyze the results and share them with your client.
Many Advisors choose to use a screen-sharing program with their clients when they are not in the same location. This video will give you instructions on how to download and use one of these programs.
Click on a link below to jump to the content.
- Uploading Your Logo
- Changing your password
- Revising your Registration Information
- Revising your Billing Information
- Adding/Renewing your license subscription
- Assigning licenses (for Administrators)
- Revising Default economic assumptions
- Contacting Tolerisk®
- Starting a New Risk Assessment
- Editing Name/Notes of existing Risk Assessment
- Deleting a Risk Assessment
- Search for a Risk Assessment
- The Willingness Questionnaire
- The Ability (cash-flow) Tab
- The Assumptions Tab
- The Results Tab
- Tolerisk® Reports
- Investor Worksheets
- Using Screen Sharing or Webinar technology to conduct Risk Assessments
- Converting your FREE Trial to a full term license
Uploading your Logo
- To add your company's logo to the PDF reports, you need to upload the logo to Tolerisk®. Note: If you are not the administrator on your account, you will not be able to upload a logo.
Select the Settings Tab
Select the Defaults Sub-Tab
Click the Choose File button and browse for the logo file. The file must be a JPEG and be less than 1MB.
Click the Update button to save your settings
Changing your password
Select the Settings Tab
Select the Registration Information Tab
Enter in the new Password and click Update to save.
Revising your Registration Information
Registration Information can be updated on the Registration Information page.
To save any changes, click Update.
Revising your Billing Information
- Registration Information can be updated on the Billing Information page.
- To save any changes, click Update.
For security purposes, credit card data is not stored on the website.
Adding/Renewing your license subscription
To add more licenses and/or increase the length of your subscription, click on the Renew/Add more Licenses link.
- Select the new expiration and/or additional users.
- Apply any applicable Referral Codes.
- Update Billing Information.
- Enter Credit Card Information.
- Review new Subscription details.
Assigning licenses (for Administrators)
If you have Unused Subscriptions, you can assign them to other individuals by clicking on Send Invitation.
Type each user's email address in the box, separated by comma, semicolon, or seperate lines. An email will be sent to each address with instructions to create their account.
Revising Default economic assumptions
- Default Inflation and Annual Investment Growth Rate values are entered on the Setting Tab. These will be the default value in every risk assessment, but can be easily manually updated for each assessment.
- Annual Investment Growth Rate is used as the growth rate for all investment accounts in the model, as well as the discount rate used when calculating the Present Value of all cash flows.
- Inflation Rate is used to adjust Monthly Expenses, Social Security, and other cash flows that have an option to increase annually by inflation.
- Tolerisk® can be contacted using the Contact Us page, or by emailing Support@Tolerisk.com.
Starting a New Risk Assessment
Under the Risk Assessments tab, click on Start New Risk Assessment. Alternatively, you can open a previously completed Risk Assessment and Save As.
- If you have completed a risk assessment for this client already, enter the name of the Risk Assessment (e.g. Annual Check-in, Getting Ready to Retire) and select the name of the client in the dropdown below. If this is a new client, click Add New.
- If you are creating a New Client, enter in a unique client name.
Enter in notes about the Risk Assessment. Notes can be accessed/changed/amended after the Risk Assessment is completed.
Editing Name/Notes of existing Risk Assessment
- The Name of the Risk Assessment, as well as the Notes, can be viewed/edited by clicking the Edit Name/Notes link on the appropriate line.
Deleting a Risk Assessment
- To delete a Risk Assessment, navigate to the "Risk Assessments" tab.
- Click on the Delete link on the appropriate line.
Search for a Risk Assessment
- In the "Risk Assessment" page, you can search for a specific Risk Assessment uging the search bar at the top of the page.
The Willingness Questionnaire
- The first part of the Risk Assessment is the Willingness Questionnaire. It is 20 multiple choice questions. The Questionnaire can be skipped, and a score can be entered manually on the Assumptions Page to produce the Tolerisk® Score.
- There are several sets of paired questions that will trigger a pop-up if answered materially inconsistently. These are designed to catch errors in interpretation by the client, or areas where further discussion is merited. Changing the answers are not required.
- When the last question is answered, you will see the Willingness Score. This score is on a scale of 0-100, where 100 is the most aggressive personality. We find that most clients score between 40-60, but it is possible for someone to be more aggressive/conservative.
The Ability (cash-flow) Tab
- The Ability Section is where all of the cash flow inputs are entered. These inputs will be used to stream out a model of future account values, inflows, and outflows that will contribute to calculating the Ability Score. The Primary Client can be a single individual or a combination of a couple's cash flows (if they exhibit similar timing). If it is beneficial to separate out specific cash flows for the spouse, click the “Enable Spouse” checkbox. For any fields that you do not wish to separate out from the Primary, you may enter 0.
- To view a list of field definitions, see the Definitions section
The Assumptions Tab
- The Assumptions section allows you to pick the financial assumptions for the model. The Annual Growth Rate and Inflation Rate will populate with the values you have set in Defaults. The Pre and Post Retirement Effective Tax Rates should be entered based on the clients' expected Federal, State, and Local tax rates (combined). These rates are Effecitive, not Marginal, meaning they are the actual rate paid by the client on all income, not the tax on an additional dollar of income.
The Results Tab
- The "Recommended Target" range combines the investor's Ability & Willingness to take investment risk. It is expressed as the numerator in a simple stocks/bonds ratio. It is based on the single-path cash-flows and all entered financial assumptions.
- "Estimated Age Money Runs Out" show what age the clients' Assets (Taxable and Retirement) would run out based on the modeled assumptions.
- If the "Estimated Age Money Runs Out" is below 90, Tolerisk® will recommend some changes in the inputs that will extend age to 90.
- The Risk Chart depicts the investor's Ability to take risk across the axis at the top and Willingness to take risk across the left axis. The magnifying glass illustrates the range that may be most appropriate for the investor. Note the "Market Movement" question – which serves as an acid test for general validity. If this is drastically different than the general results, you may want to revisit the exercise with your client.
- The Projected Assets chart graphs the client's asset value into the future using the assumptions in the model. The Red Bar indicates the age at which the Primary client expects to retire (Green Bar for the spouse).
- Hovering your mouse over each bar will show the value of the assets in that year.
- The Projected Tolerisk® chart will show estimated Tolerisk® Scores as the client ages. This assumes that all of the assumption in the model occur precisely as entered. The blue bar indicates the age at which the Primary client expects to retire (Green Bar for the spouse).
- Hovering your mouse over each bar will show the Tolerisk® Score in that year.
- The Sensitivity Analysis report shocks each input and shows how it would affect the Tolerisk® Score and the age when the client's money would run out. You can toggle between these two output choices. A red bar represents a decrease in the Tolerisk® Score, or a decrease in the Age when money runs out. A green bar represents an increase.
- The Scenario Analysis page uses your client's specific cash-flow and time horizon, irrespective of their personality score, and layers them over historical data dating - back to the 1920s. In other words, Tolerisk® runs your client's cash-flows assuming a historical starting point EACH and EVERY month since 1926. This allows us to see how well their finances held up in a very wide range of historical stock, bond, and inflation cycles. There are two tables that show the results in different ways. In both cases, the column on the left hand side depicts sample equity and treasury portfolios. Viewing the table by Age shows the probability of the client’s money lasting until specific ages based on the historical analysis. Viewing the table by Percentile shows the age at which the client's money runs out with various probabilities. The first column titled Per100 (for 100th percentile, being the single worst scenario) shows the worst case of all scenarios. As we look at the columns further to the right, we see the 99th percentile scenario and the 95th percentile, etc. The table doesn't display ages beyond 120. The Historical Benchmark Returns table shows returns, volatility, and maximum drawdowns for combinations of the stock and bond indexes used in the Scenario Analysis table. Drawdowns can be showns as period returns or annualized returns.
- The user has the option to generate PDF reports with the data from the Assessment. Using the checkboxes, select the desired reports and click the delivery method.
- View Report – Shows the report in an HTML page
- Generate PDF Report – Downloads a PDF to your computer
- Send Email Report – Sends PDF via email to your email address (username)
- You can put custom Disclosure language on the report by default by pasting the text into the Disclosure Working box on the Defaults page under Settings.
- If you want to have your client fill out most of the Tolerisk® inputs in advance, you can use the Investor Worksheets functionality. Using either the Client-Specific link or the Advisor Link, the client can walk through a workflow on their own computer and submit the data to you, the Advisor. The Client-Specific Link will map directly to the client in Tolerisk®, so they are not required to enter any contact information into the worksheet. The Advisor Link will not map to any specific client in Tolerisk®, so the client (or prospect) will need to enter in some information so that you may identify them. You may also embed a button on your website that will allow someone to start filling out the worksheet and subit it to you. This can be a great prospecting tool.
- When an Investor Worksheet is submitted to you, it can be viewed and imported into Tolerisk® on the Investor Worksheets page. The "Review" report will show you any questions that we skipped, marked "Discuss with my advisor", or that violate any of the expected ranges of values for that input. If the client uses the Advisor Link, you will have the ability to assign the Risk Assessment to an existing client or create a new client.
- Watch the video tutorial HERE
Using Screen Sharing or Webinar technology to conduct Risk Assessments
- If you are not in the same location as your client, we recommend utilizing a screen-sharing program to allow your client to see the application while you are doing the assessment. Examples of screen-sharing programs include GoToMeeting, Join.Me, WebEx, and TeamViewer.
- We find that the best way to conduct a Risk Assessment while using a screen-sharing program is to give the client control of the mouse during the Willingness Questionnaire (to avoid undue bias), and then the advisor takes back control during the remainder of the Assessment.
Converting your FREE Trial to a full term license
- While logged into the trial account, click the "Buy" button and you will be taken to a page to complete the billing process. You will be able to keep your current username, and all Risk Assessments created durng the trial will still be available in your paid license.
|Additional Capital Expenditures|
Expenditures NOT included in the monthly expense assumptions. These generally include items like the purchase of real estate, college tuition, and weddings.
|Annual Investment Growth Rate|
The pre-tax growth rate of Assets in the model, as well as the dicount rate used to find the Present Value of all cashflows.
The current age of the Primary client. If enabled, the age of the Spouse is listed separately.
A custom array of expenses as an ALTERNATIVE to the simple monthly expenses (e.g. Expenses may go up or down in retirement).
|Custom Retirement Savings|
A custom array of retirement account contributions as an ALTERNATIVE to the simple monthly retirement savings.
A custom array of savings as an ALTERNATIVE to the simple monthly savings.
|Expected Monthly Pension|
This should include any Defined Benefit Pension or annuity, which does NOT adjust for inflation. It should be entered pre-tax. It can start at a different age than retirement.
|Expected Monthly Social Security|
This should be entered in today's pre-tax dollars. It will automatically be indexed to inflation in the future and can start at a different age than the assumed retirement age.
|Expected Yearly Increase - Taxable Savings|
The anticipated annual percentage that savings is expected to increase every year (e.g. a 3% annual increase to monthly savings).
|Expected Yearly Increase Roth IRA/401k|
The anticipated annual percentage that Roth retirement account contributions are expected to increase every year (e.g. a 3% annual increase to monthly savings). Be mindful of current and future IRS limits on Retirement Account Contributions in order to select a realistic annual increase percentage.
|Expected Yearly Increase Traditional IRA/401k|
The anticipated annual percentage that Traditional retirement account contributions are expected to increase every year (e.g. a 3% annual increase to monthly savings). Be mindful of current and future IRS limits on Retirement Account Contributions in order to select a realistic annual increase percentage.
The rate at which Monthly Expenses, Social Security, and Other Income (if selected) will increase annually.
|Investment Tax Rate - Pre-Retirement|
This tax rate should contemplate your typical ratio of qualified and non-qualified dividends, as well as long-term and short-term capital gains rates. It should be commensurate with your general tax rates for your taxable investment portfolio pre-retirement.
|Investment Tax Rate - Post-Retirement|
This tax rate should contemplate your typical ratio of qualified and non-qualified dividends, as well as long-term and short-term capital gains rates. It should be based on your overall asset allocation and tax rates after retirement.
Average monthly spending (include all recurring expenses as well as discretionary spending like vacations, gifts, etc.)
|Monthly Roth IRA/401k Savings|
The monthly amount going into Roth retirement accounts such as Roth IRA, Roth 401(k), etc.
|Monthly Taxable Savings|
The monthly amount going into taxable (non-retirement) accounts such as savings, checking, money-market, brokerage accounts, etc.
|Monthly Traditional IRA/401k Savings|
The monthly amount going into pre-tax retirement accounts such as Pensions, IRA, 401(k), 403(b), etc. This should include any employer contributions that are anticipated to be vested before retirement.
|Other Expected Monthly Income|
Additional expected income in retirement, including income from real estate, personal business, or an additional annuity or pension. It can be designated to adjust with inflation or remain static using the check box.
|Rainy Day Money|
The number of today's monthly expenses that the client would like to have in cash or very low risk assets in case of emergency, such as loss of job. Typical entries are 3 to 12 months. For retired clients, this may be 0. For clients with significant expenses relative to their assets, this may be a material assumption.
The age when the client plans to retire, or stop saving money and begin living on assets and retirement income.
|Roth IRA/401k Assets|
All Roth retirement accounts, such as Roth IRA, Roth 401(k), etc. should be included.
All investible assets in taxable accounts, such as brokerage, checking, and savings accounts. Do NOT include retirement accounts (IRA, 401k, etc.) or illiquid assets such as real estate, life insurance, or personal business. Retirement assets will be entered separately. Illiquid investment assets will be included by incorporating their income in retirement subsequently.
|Traditional IRA/401k Assets|
All pre-tax retirement accounts, such as Pensions, Traditional IRA, 401(k), 403(b), etc. should be included.