Everyone has a Unique Risk Number. What’s Yours?
Together We Can Take the Guesswork Out of Your Financial Future
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Build Your Investment Strategy with Riskalyze
Leonard Financial Group utilizes Riskalyze, an award-winning technology platform, to measure your acceptable levels of risk and reward. Knowing your Risk Number helps us ensure that your portfolio defines your investment goals and expectations allowing us to better serve you as our client.
Is Your Portfolio Aligned with Your Risk Number?
Let's Find Out.
The first step is to take the 5-minute questionnaire that covers topics such as portfolio size, top financial goals, and what you’re willing to risk for potential gains. Then we’ll pinpoint your exact Risk Number to help guide our decision-making process together.
Knowing your Risk Number is great, but if you don't use it properly it won't be effective. What do we mean? For example, you know it's 20 degrees outside but you wear shorts and a t-shirt, you've failed to use some valuable information and now the consequences aren't pleasant. This is the same as your Risk Number. So how do we use this valuable information to help our clients achieve financial success with their investment portfolio?
Our Process
1. Review Your Current Investments
When we talk to our clients about their financial goals, we find that the question "How much risk should I be taking with my investments?" is one of the most frequently asked, and one of the most important. Why? Because as it turns out, 4 out of 5 people have more risk in their existing portfolios than they realize. By using Riskalyze, we can provide a real time statistical analysis to help make sure the Risk Number of your current portfolio matches your personal Risk Number. Often times, we find there is a significant difference between the amount you are willing to risk and the amount of risk you are currently taking.
2. Align Your Portfolio to Match
After pinpointing your Risk Number, we can easily provide some action steps to bring your current portfolio into alignment with your risk profile. We’ll craft your portfolio to reflect your personal preferences and priorities, allowing you to feel comfortable with your expected outcomes. The resulting proposed portfolio will provide you with a reasonable estimate of the potential gains and losses you might expect over time.
3. Stress Test Your Investments
Once we’ve crafted your portfolio to your preferences, we’ll stress test your proposed portfolio to illustrate how you would have fared through various historical market events, interest rate swings, market collapses, and the financial crisis and recovery.
We’ll also discuss your 95% probability range. Every time we design a portfolio for a client, Riskalyze calculates a range. For example, -8%- +15%, which creates a 95% probability for your portfolio's outcome for up to six months. A portfolio with a range that matches your comfort zone will have a 95% probability of staying within your risk tolerance. This will allow us to set expectations for what's normal behavior for your investments in the future.
4. Review Risk & Reward Potential
We will also visualize the risk and reward profile for each individual investment we propose for your portfolio. As you can see above, your Risk Number is shaped like a speed limit sign, so a higher Risk Number means a higher level of risk and potential return. A Risk Number is a variable designed to capture the relative risk between people or portfolios. Therefore, a “50” portfolio generally has more risk than a “49,” but two “50” portfolios may be quite different from each other. By providing you a visual illustration similar to the heat-map shown below of your potential risk (red), potential reward (green), and diversified risk (gold) it gives us a powerful tool to help you understand the potential risk and return that each investment is contributing to before we decide what’ portfolio is right for YOU and make any final investment decisions.
5. Meet Your Retirement Goals
Before we’re finished, we’ll also review your progress toward your financial goals by building a real-time, plug-and-play Retirement Map. When you’re done, you’ll fully understand the probabilities of success, and what we can do to increase it in order to reach your financial goals!
