Please note that Portnoff Financial has joined with Tempus Wealth Planning and some information here may no longer be applicable. Please contact Jeremy Portnoff at 949-226-8342 (CA) or 732-226-3113 (NJ) for additional information.  We apologize for any confusion while we are in transition. 

West Coast Phone: 949-226-8342
East Coast Phone: 732-226-3113


Risk Profile & Analysis 

Do you ever wonder if you are taking the right amount of risk in your investment portfolio? Does your portfolio fluctuate more than you are comfortable with but your advisor doesn't seem to validate your concerns? Is your portfolio too risky, not risky enough, or is the risk you are taking just right? How do you know? Do you feel prepared for how much your portfolio might decline when the next bear market arrives?

Most investors don't have a good sense of whether they are taking the appropriate amount of risk usually because of a lack of, or poor risk analysis tools available. For example, most traditional risk questionnaires ask questions such as how old you are, your time frame for when you need the money, and whether you are focused on growth, income, safety of principal, etc. Just because a young person may have 30 years until retirement doesn't mean he/she should take a lot of risk if they are uncomfortable with high risk. Just the same, just because a 60 year old may be nearing retirement doesn't necessarily mean they should invest conservatively as there may be other factors involved that allow that person to take more risk than a similarly aged peer. It is these, and other fundamental flaws in traditional risk questionnaires that can result in a misalignment of risk comfort and portfolio design and ultimately taking on more risk or less risk than intended both of which can potentially knock a financial plan off course.

Assessing a client’s proper risk comfort level and need is perhaps one of the most difficult challenge advisers face. Get it right and we have the basis for a productive, long term relationship. Get it wrong and we have a time-bomb that doesn't tick. To solve this problem, Portnoff Financial has adopted the FinaMetrica Risk Profiling System to ensure proper risk assessment.

How is FinaMetrica different from other risk profiling systems?

The FinaMetrica risk profiling system is a psychometric tool which provides a highly personalized assessment of an individual’s financial risk tolerance and a solid basis for taking that into account in the investment advice and management process. In particular it assists in framing investment performance expectations to diminish the likelihood of investors being surprised by market volatility.

FinaMetrica has been adopted in over 23 countries by leading client centric investment advisers and institutions for over 10 years who want a robust methodology for assessing their clients’ risk tolerance. To the best of our knowledge, FinaMetrica delivers the highest levels of validity, reliability and accuracy of the available Web based alternatives we have reviewed. The University of New South Wales' Applied Psychology Unit confirms that the FinaMetrica risk tolerance system meets or exceeds the internationally accepted standards for a psychometric tool.

What makes a "good" risk tolerance test?

A good risk tolerance test will be relatively easy to understand and answer. It must also have been developed on sound scientific principles in order to ensure the validity and reliability of its results. The starting point is a pool of potential questions. The trialing process these must go through will identify which questions work (statistically) and which do not. The questions that are effective in a questionnaire are not necessarily those most suitable for an interview. The Personal risk Tolerance Report produced from a completed questionnaire provides details of the development of the FinaMetrica system.

How many FinaMetrica risk profiles have been completed?

To date more than 1,000,000 FinaMetrica Risk Tolerance questionnaires have been completed.

What is 'gap analysis'?

'Gap analysis' is a phrase FinaMetrica coined to describe the process by which a client's risk tolerance can be compared to the risk inherent in the portfolio required to achieve the client's goals (in shorthand "risk required") and, if there is a mismatch between risk tolerance and risk required, how the mismatch is resolved. 

If you want to be confident that your portfolio is in alignment with your risk comfort zone, fill out your information below and you will receive an email invitation to complete a FinaMetrica risk profiling questionnaire. For more information about FinaMetrica download a brochure and an annotated sample Risk Profile.

After completing the risk profile, you will have the option to request a free portfolio review by Portnoff Financial to discuss the results of your risk profile and compare with your existing portfolio to see if there are any improvements that can and/or should be made.

Working with Portnoff Financial you can feel confident that the risk in your portfolio properly aligns with your comfort zone, investment goals, and expectations.

Fill out the form below to request your FREE FinaMetrica Portfolio Risk Profile: