The Risk Assessment helps us understand your risk tolerance. This is part of the Know Your Client (KYC) for financial advisors, which is a mandatory regulatory process used to verify a client's identity, risk profile, and financial standing to prevent fraud and money laundering.
Advisors must collect essential facts, including personal identification, investment knowledge, objectives, and financial situation (net worth, income). These measures ensure suitability and regulatory compliance.
Risk Assessment Questions
The following questions are included in the Risk Assessment:
What is your age?
What is your estimated annual income (including employment paycheck, alimony, Social Security, investment and all other income)? Please enter a number.
What is your estimated net worth (i.e., assets minus liabilities, excluding your residence)? Please enter a number.
What percentage of your total investments will you invest in this account? Please enter a number.
Are your holdings outside this account well diversified?
How would you describe your financial situation and needs?
Which statement best describes your investment experience?
How do you rate your understanding of your investments?
Do you want more or less risk when compared to passively investing in broad equity market index like S&P?
How long do you have to meet your financial goal for this account?
Update your Risk Questionnaire
To update your risk questionnaire, please reach out to our team directly at [email protected]. We will assist you in providing a new form to ensure your strategy remains aligned with your current financial situation and risk tolerance.
Portfolio and Basket Restrictions
Your risk assessment identifies which model portfolios and baskets on Plutus align with your specific risk tolerance and investment goals. Depending on your risk assessment, we may restrict or limit the model portfolios and baskets available to you on Plutus to ensure your strategy remains suitable for your financial profile.