The Willingness Questionnaire is one of the two components contributing to your clients’ Tolerisk score.
Here is some information about the Willingness questionnaire -
- This psychometric quiz captures your clients’ Willingness to take Investment Risk. It is personality-based and is thought to be constant throughout one’s lifetime.
- This Willingness Score is calibrated to be the numerator in a stock/bonds ratio, and is used as a constraint to the Ability score, if the Ability score is higher. The Willingness Score should not be used by itself without also calculating the Ability Score to see if the Ability score becomes more constraining than the Willingness Score.
- The first part of the Risk Assessment is the Willingness Questionnaire. In Tolerisk Pro, there are 20 multiple choice questions. The Questionnaire can be skipped, and a score can be entered manually on the Assumptions Page to produce the Tolerisk®Score.
- There are several sets of paired questions that will trigger a pop-up if answered materially inconsistently. These are designed to catch errors in interpretation by the client, or areas where further discussion is merited. Changing the answers is not required.
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Spouses can submit the Willingness questionnaire together or separately. If they submit two quizzes, you can use their combined “Ability” section with an average Willingness score, either one of their scores or an override.
The video below walks you through the information above -