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Learn more about your tolerance for risk

Money Guidance has taken time to research the extensive range of risk assessment tests on offer to financial advisers before deciding to give you FREE access to the PlanPlus risk assessment tool.

We’re convinced that understanding your risk profile is essential before making any financial decisions.

  • Remember, your risk tolerance is just one of a number of important factors that should be considered in assessing what may be financially right for you. Other considerations you should take into account include your particular needs, objectives and circumstances.
  • This means knowing your numbers – this includes your current income and expenditure; previous investment experience; the proportion of total savings/investments represented by any one current investment; emergency money needs; planned expenditure over the next few years; possible future inheritances.
  • This tool will help assess your attitude to risk. While we won’t provide you with advice about particular investments that are suitable for you, the process will still be helpful in shaping your ideas about what kind of outline investment portfolio (if any) you could consider.
  • Ask yourself whether you should be paying off debt rather than investing, or whether you should really be thinking about creating an investment portfolio with a view to medium/long term growth when shorter term access to these funds may be needed.
  • Your attitude to risk is one thing, but what about your capacity for loss?  For example, will any loss of capital have a materially adverse effect on your living standards?  Be comfortable that your finances can withstand any shorter term reduction in the value of more risky investments.
  • Finally, you should discuss this report with your money coach or financial adviser to “sense test” the system’s outputs so you are comfortable with its assessment of you.

The PlanPlus risk-profiling system is internationally recognised and is designed to focus on the psychological factors relevant to financial decision-making.  Knowing how best suited you are as an individual to invest your money is often a grey area for most people.  Appreciating the values and motivations that drive you will allow you to understand and make a more informed choice when it comes to making investments.

This should be an iterative process, as events in your life will probably change your risk profile over time, so we suggest that you re-do your risk assessment – say, every three years. Once you have taken this test, we will quickly email you with a written summary of the outcome.

Getting started

Before starting, we will need a few details from you so that we can set you up with a free account, from where you will be able to take the test and access your results.

As soon as you have submitted your details, you’ll be able to take the assessment – which should only take about 5-10 minutes.   Once you’ve finished, we’ll email the report so you can retain it for future reference.

Disclaimer: I accept that this Attitude to Risk tool is not suitable for specific investment advice, as it does not take into account my individual circumstances and objectives.

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