Well-liked monetary planning know-how supplier RightCapital has launched RightRisk, its new threat tolerance measurement instrument. Out now, the instrument is mechanically accessible as a part of the corporate’s premium and platinum subscriptions.
RightCapital has been on a progress tear for the previous few 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 threat tolerance questionnaire and power, a transfer addressing an often-requested characteristic amongst its advisors.
WealthManagement.com spoke to 2 advisors, each offered 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 threat evaluation (and earlier than that, Morningstar’s threat questionnaire).
“I appreciated Riskalyze total, however seven out of 10 of my purchasers 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 cherished 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 easy 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 threat comparability exhibits how an total family threat rating compares to the present portfolio, goal portfolio in addition to main asset lessons.
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 characteristic Cook dinner discovered interesting.
“We have now a really particular approach we wish to ask the chance tolerance questions, and it offers us the flexibility 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 explanation we advised RightCapital that we needed to incorporate this was to simplify our platform,” he added. Cook dinner mentioned he didn’t need 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 threat abstract, which illustrates family threat rating and the way it compares to the present portfolio, goal portfolio, in addition to main asset lessons. There’s additionally a visible risk-return evaluation that may assist finish purchasers perceive the potential upside and draw back returns of their funding portfolios and main asset lessons.
“We warehouse all of the suggestions we get from prospects and having a threat instrument was among the many high requests we’ve gotten over time,” mentioned Shuang Chen, co-founder and CEO of RightCapital.