IFA Risk Capacity Survey

How Much Risk Is Right for You?

It seems like a pretty easy question, doesn’t it? Surprisingly, most investors have no idea how much risk is right for them. Even worse, they have no idea how much risk they’re taking! As a result, the overwhelming majority of investors fail to earn the returns of even a simple S&P 500 Index over periods of ten or more years. 

The Nobel Prize-winning research theorized in the tenets of Modern Portfolio Theory shows us that investors can earn higher expected returns by investing in portfolios of globally diversified index fund portfolios that match their Risk Capacity--their ability to take on stock market risk. 

Risk Capacity is measured by examining five dimensions: 

1. time horizon and liquidity needs

2. attitude toward risk

3. net worth

4. income and savings rate

5. investment knowledge


The larger the capacity for risk, the greater the expected returns. Expected returns are explained by Risk Capacity because capacity is directly linked to proper risk exposure, also referred to as asset allocation or investment policy.

What’s your Risk Capacity? Find out right now when you take the simple 5-minute survey. It will lead you to one of the 10 IFA Index Portfolios IFA has built for 401(k) plans. 

Click here to take the Risk Capacity Survey to find out which is the right portfolio for you »