Relationship Investing, Quantitatively Speaking

Entruity Wealth Uses Riskalyze to Assess Client Risk Tolerance

“Getting to know you, getting to know all about you …” The old Rogers and Hammerstein song from the musical “The King and I” describes how the new governess plans on establishing a relationship with the king’s children. The song talks about the give-and-take of establishing a meaningful basis for a connection. The key to any positive relationship is mutual respect.

 

It’s All in The Numbers

We work hard most of our lives and may have managed to accumulate a tidy nest egg. So, it’s important to establish ground rules when choosing a financial adviser. You need to understand each other and trust that the adviser understands your financial goals and limitations.

Andrew Barnes, president of Entruity Wealth, relies on the innovative software Riskalyze, an algorithm tool that evaluates and quantitatively assesses client risk tolerance. Riskalyze customizes an investment strategy that aligns closely with factors related to your personality, psyche and lifestyle.

 

Riskalyze Guides the Strategy

A series of questions calculates what’s referred to as your risk number, measured on a sliding scale from most to least risk-averse.

“It removes any guesswork,” Andrew says. “We set realistic expectations as a basis for moving forward.”

Investors who have taken the quiz mostly agree with their risk number. Riskalyze also levels the playing field and guides the conversation with clients. Building a portfolio in the past was often a shot-in-the-dark based on age or other stereotypes. Entruity’s use of Riskalyze lets them tailor an investment plan that’s adapted precisely to the client. Everyone’s different, so why shouldn’t your portfolio uniquely reflect you?

 

Getting to Know You as You Get to Know Yourself

Things happen in life, and money can be an emotional trigger. While your risk number might be high when you’re feeling flush, something could occur in your personal life or world that alters your willingness to sustain a loss. Some people become fearful and get out of the market too soon and then lose the opportunity to re-enter. Or worse yet, wait too long to “buy the dip” before the market rebounds. Riskalyze helps establish a six-month blueprint that should perform with 95 percent accuracy within the calculated range. Clients feel reassured and empowered to stay the course even if the during market volatility. Setting parameters and expectations enhances the relationships Entruity Wealth builds with clients.