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How did you design the questionnaire to determine my risk tolerance score?
QuietGrowth determines the risk tolerance score of the client by taking into consideration both the objective risk tolerance and the subjective risk tolerance. Some questions in the questionnaire will be based on objective risk to determine the ability of the client to take risk, and the rest of the questions will be on subjective risk to determine her willingness to take risk. We will also identify and factor in for any inconsistencies in the manner in which the client answers the questions pertaining to subjective risk tolerance.
Our methodology to determine the risk tolerance score of the client has various aspects such as:
- Objective ability of the client to take risk based on her projected savings after expenses throughout her working years, projected retirement income, and projected retirement spending needs.
- Subjective willingness of the client to take risk.
- Consistency of responses given by the client to the questions used to determine her subjective risk tolerance.
After the QuietGrowth account is created for the client and the client starts investing, we will continue to gather more information about her so that the accuracy of our understanding of her risk tolerance improves progressively.
Refer to our Investment Methodology page for more information.
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