Finra’s mandate that requires brokers to identify a client’s risk tolerance is based upon an academic, over-simplification of the real world.

Many of us use a traditional risk tolerance questionnaire. We use this questionnaire in an effort to protect clients (and our firms) from too much, as well as not enough risk, depending on the ...

Anybody who has ever been to a financial adviser knows the drill. The adviser begins by asking you to fill out a questionnaire, aimed at getting at a key measure: your appetite for risk. By ...

You likely filled out a risk tolerance questionnaire before you opened your investment account. But that questionnaire — which probably labeled you as an aggressive, moderate or conservative ...

The global average monthly risk tolerance score as measured by the Morningstar Risk Tolerance Questionnaire from January 2008 to December 2023. Source: Morningstar. Stable does not mean immutable.

This is one of the main questions financial advisers want to know from clients. A typical questionnaire asks investors to rate their investment-risk tolerance on a scale from extremely low to ...

Risk tolerance questionnaires are supposed to pinpoint your acceptable level of risk to help you select suitable investments, but the forms may do more harm than good. [See: 10 Ways for Investors ...

To determine a person’s risk tolerance, financial planners offer a scenario questionnaire that poses several possible actions pertaining to a change in the market. Answers to the questions will ...

Financial advisors may need to alter the traditional way they view investors safety zones.

Risk Tolerance. If you have a high risk tolerance, it means that you're willing to make riskier investments with less guarantee of return.If you're an investor with a lower risk tolerance, you'll ...

Some financial advisers use software that analyzes your comfort with investment risk. By quantifying risk tolerance (by, say, assigning a number based on your answers to a questionnaire), these ...

It typically asks 8 to 10 questions covering goals, time horizons, risk tolerance, risk capacity, investment experience, etc. It is obvious today that it was never fit-for-purpose.