Tolerisk
Category: Portfolio Risk Tolerance, Management Reporting and Rebalancing Solutions
The Science Of Risk Tolerance
Firm Bio
Tolerisk has pioneered the 2-dimensional risk tolerance assessment for advisors. This provided a framework for fiduciary advice, separately measuring a client’s willingness to accept risk and their ability to take risk. Tolerisk’s deep analytics incorporate dynamic asset allocation as the client evolves through their cash-flows, variable inflation assumptions, and dynamic life expectancy. Tolerisk’s simple user interface makes the experience easy for advisors and powerful for clients. Greater confidence in their chosen plan drives better retention and more referrals.
The addition of Tolerisk EZ has allowed advisors to utilize a 2-dimensional assessment in short exercise, launched from a branded landing page or website. This allows a fiduciary caliber assessment to be used as a lead generator, facilitating more meaningful dialogue with prospects.
Tolerisk 401k solves another industry challenge. Historically, advisors could not afford to provide custom financial planning to the masses of small balance plan participants. Through better technology, we allow advisors to deliver custom allocations, custom glidepaths, and answer the anticipated questions about financial decisions through automation.
Description of Product or Service
Tolerisk is SaaS based risk tolerance assessment technology for financial planners and investment advisors. Our patent-pending 2-dimensional assessment lets advisors easily analyze their client’s willingness to accept risk using a traditional psychometric profile and their ability to take risk, by analyzing their cash-flow chronology. For decades, financial planners have been left to use simple personality profiling tools to help clients select the right risk directive for their investments. The biggest failure of this so-called risk tolerance assessment is that it only measures the client’s WILLINGNESS to accept risk and never measures their actual ABILITY to take risk. Fiduciaries have a Duty of Care, which requires they incorporate readily available information (including cash-flows) into the important advice provided to a client. Without better technology, advisors are left making manual “side adjustments” to their personality profiles, which aren’t objective or repeatable. Tolerisk revolutionizes risk tolerance assessments by providing advisors easy technology to separately measure BOTH willingness and ABILITY to take risk. The output is granular, facilitating gradual portfolio adjustments as the client’s circumstances evolve. It even incorporates mortality probabilities to properly evaluate the client’s likelihood of outliving their money. Everyone can be confident their risk directive was based on realistic assumptions. Advisors using Tolerisk report that clients exhibit more confidence in their portfolio and their financial plan, driving up retention and referrals. Prospects are impressed and more often become clients. Advisors please their compliance officer and regulators by demonstrating greater fiduciary care and a culture of compliance having incorporated cash-flows into their advice on risk directives. Tolerisk 401k tackles the broad advisory challenge of how to better serve typical small balance participants who don’t generate enough revenue to cover the costs of custom financial planning. Tolerisk 401k leverages our deep analytics and tailors the user interface specifically for 401k participants. Tolerisk 401k enables advisors to provide deep and meaningful customized advice to participants in a matter of minutes. This makes it practical to provide custom advice without raising fees. Advisors will close more plans, better serve participants, and generate more wealth management leads in the process.