Fashionable monetary planning know-how supplier RightCapital has launched RightRisk, its new danger tolerance measurement instrument. Out now, the instrument is routinely out there as a part of the corporate’s premium and platinum subscriptions.
RightCapital has been on a progress tear for the previous couple of years and remained firmly within the No. 3 spot amongst monetary planning platforms with just below 15% market share within the 2024 T3/Inside Info Advisor Software program Survey. Now, the supplier has rolled out its personal danger tolerance questionnaire and power, a transfer addressing an often-requested function amongst its advisors.
WealthManagement.com spoke to 2 advisors, each supplied by RightCapital.
Peter Newman, founding father of Peak Wealth Planning, mentioned he has been utilizing RightCapital for 3 years. Previous to that, he used MoneyGuidePro for planning and Riskalyze for his danger evaluation (and earlier than that, Morningstar’s danger questionnaire).
“I appreciated Riskalyze general, however seven out of 10 of my shoppers would simply perceive the outcomes [the risk score generated], and the final three went ‘huh’—after which Riskalyze raised their costs,” Newman mentioned.
He added he appreciated how RightRisk integrates with the remainder of RightCapital’s planning capabilities.
“What I additionally beloved about it’s that I can simply load their [the client’s] end in and doc that I did it—I assumed it was a easy and simple answer,” mentioned Newman.
One other advisor who has examined the brand new instrument is Matt Cook dinner, founder and CEO of Stoic Non-public Wealth, primarily based in Conover, N.C.
The RightRisk instrument’s danger comparability exhibits how an general family danger rating compares to the present portfolio, goal portfolio in addition to main asset courses.
Advisors can use RightRisk’s default 13-item questionnaire, which is predicated on the Grable and Lytton scale, or create their very own. The power to customise the questionnaire is a function Cook dinner discovered interesting.
“Now we have a really particular manner we wish to ask the danger tolerance questions, and it offers us the power to tailor it to our enterprise,” he mentioned. His follow works primarily with airline pilots for whom he offers complete planning (American Airways has a hub in close by Charlotte).
“The most important factor, the rationale we advised RightCapital that we needed to incorporate this was to simplify our platform,” he added. Cook dinner mentioned he didn’t wish to have so as to add a instrument from one other firm to his tech stack.
Among the many different options of the RightRisk instrument is a family danger abstract, which illustrates family danger rating and the way it compares to the present portfolio, goal portfolio, in addition to main asset courses. There may be additionally a visible risk-return evaluation that may assist finish shoppers perceive the potential upside and draw back returns of their funding portfolios and main asset courses.
“We warehouse all of the suggestions we get from prospects and having a danger instrument was among the many prime requests we’ve gotten over time,” mentioned Shuang Chen, co-founder and CEO of RightCapital.
