Your risk level
How we find the right box on the scale for your money, and how often we check it.
How we set your risk level
Before we invest anything, we agree where your money should sit on the scale. Four steps, and the last one repeats every year.
A questionnaire
Twelve questions about how you feel when markets fall. It takes about fifteen minutes and gives a score.
Your capacity for loss
We look at your income, other savings and when you will need the money: how big a fall you could live with, not only how you would feel.
A level we agree
We explain where both answers point on the scale from 1 to 7, and you choose the level. It is written into your agreement.
A review every year
Lives change. Each year we ask the questions again and move the portfolio to a new level only if you agree.
The questionnaire is the same for every client (sample).
Where a score points
The questionnaire score gives a starting point on the scale. Your capacity for loss can move it down, never up.
Score 0–10
Risk level 1 of 7: 1234567
Usually money needed soon; we suggest the Cash reserve.
Score 11–20
Risk level 2 of 7: 1234567
Uneasy with falls of more than a few percent.
Score 21–30
Risk level 3 of 7: 1234567
Accepts some falls for some growth.
Score 31–40
Risk level 4 of 7: 1234567
Comfortable with ups and downs over seven years or more.
Score 41–50
Risk level 5 of 7: 1234567
Calm through large falls; long time to invest.
Score 51–60
Risk level 6 of 7: 1234567
Seeks growth and accepts very large swings.
Score bands (sample).
Feeling and capacity are different
Someone may feel relaxed about risk and still be unable to afford a large fall, for example if they will need the money for a house in three years. Where the two answers disagree, we use the lower level and explain why.
The value of investments can fall as well as rise, and you may get back less than you put in.
Start with an introductory meeting
An hour at our office or by video, free and without obligation. Bring a recent statement for any savings or pensions you would like to talk about.