Tolerisk
The Science of Risk Tolerance
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.
Benefits
• Measures both dimensions of risk tolerance identified by the SEC – Willingness to accept risk and Ability to take risk.
• Displays Funded Level (%) by age - the portion of future expenses already funded, with progress towards fully funded state and tradeoffs for early vs. late retirement illustrated.
• Incorporates custom glidepath into the simulation, based on mathematical ability to take risk over time, separate paths for inflation, and annual mortality probabilities, making it more realistic than other mathematical processes.
• Calculates the industry’s most robust Probability of Running out of Money in seconds.
• Differentiates risk by tax status, with easily measured and displayed metrics.