FREE RISK AS­SESS­MENT

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

Your fi­nan­cial needs and goals and the money you have avail­able to meet th­ese should de­ter­mine how much in­vest­ment risk you need to take and how much risk you can af­ford to take.

How­ever, you and your fi­nan­cial ad­viser also need to un­der­stand your tol­er­ance for risk, to strike the right bal­ance be­tween, at one ex­treme, en­dan­ger­ing your fi­nan­cial well-be­ing and, at the other, mak­ing the most of your op­por­tu­ni­ties, Gerda van der Linde, a di­rec­tor at the In­sti­tute of Be­havioural Fi­nance (IBF), says.

To help you de­ter­mine your risk tol­er­ance, the Fi­nan­cial Plan­ning In­sti­tute and the IBF are of­fer­ing you a free, sci­en­tific as­sess­ment of your per­sonal risk tol­er­ance dur­ing Fi­nan­cial Plan­ning Week.

The as­sess­ment, pro­vided by Fi­naMet­rica, can be ac­cessed at https://www.myrisk­tol­er­ance.com/ fp­week/. You can dis­cuss your as­sess­ment with your fi­nan­cial plan­ner or a plan­ner who is of­fer­ing a free con­sul­ta­tion dur­ing Fi­nan­cial Plan­ning Week.

Van der Linde says your risk tol­er­ance is a psy­cho­log­i­cal fac­tor with fi­nan­cial im­pli­ca­tions.

As with other as­pects of per­son­al­ity, it is not easy to as­sess, she says. The Fi­naMet­rica ques­tion­naire tests risk tol­er­ance in a sci­en­tific way to over­come the short­com­ings of many other tests, she says.

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