Personal Investment Risk Score
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Legend utilizes Nitrogen, the makers of Riskalyze’s patented technology tool that quantitatively measures/assesses an investor’s capacity and willingness to accept risk. Riskalyze calls this number their personal investment risk score. After the investor’s existing portfolio is also measured and scored, that score is then compared to the investor’s personal investment risk score to determine if the two scores match.
To determine their personal investment risk score, investors are asked to answer various questions – both quantitative and qualitative, of which the answers assist Legend in formulating a personalized risk strategy for the investor.
The Riskalyze tool then calculates their personal investment risk score utilizing a scientific framework that won the nobel prize for economics. The personal investment risk score provided will range from a score of 1 (extremely low risk) to 99 (extremely high risk).
Please note that historically, the higher the risk level of one’s portfolio, the higher the long-term return (over at least a 10 year period, if not more so). Conversely, the lower the risk level of one’s portfolio, the lower the long-term return. In any case, future investment results are never guaranteed.
When the stock market has a short-term dip (5.0 to 9.9%) or even a correction (a decline of 10.0% to 19.9%), the investment probability range (personal investment risk score) reminds investors that they’re still within their risk tolerance.
SPECIAL NOTE: For those individuals who become clients of Legend, its advisory team will work together with the client to construct a portfolio that fits their investment probability range (their personal investment risk score).
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GETTING STARTED: To begin the process, click on the free portfolio risk analysis button below: |
The personal investment risk score determines a six-month investment probability range of investment results (this is a range of results that occur 95.0% of the time which is also known as a two standard deviation event for the more mathematically inclined) that the investor can be comfortable with. The investment probability range encourages investors to stay the course during the short-term so they don’t lose sight of the long-term.