TRANSPARENT & RESEARCH-BACKED
How We Determine Your Risk Bucket
Full breakdown of our 6-tier classification system
Scoring Methodology
Each of the 10 questions offers 4 options scored from 1 (most conservative) to 4 (most aggressive). Total score ranges from 10 to 40.
10-14
Level 1
15-19
Level 2
20-24
Level 3
25-29
Level 4
30-34
Level 5
35-40
Level 6
Bucket Decision Criteria
1
CONSERVATIVE — Capital Preservation
Short time horizon (<5 years), older age (65+), strong preference for stability, high loss aversion (would sell on 25% drop), limited investing experience, immediate liquidity needs. Typical investor: Retirees protecting nest egg or those with near-term goals (home purchase, education).
2
MODERATELY CONSERVATIVE — Balanced Caution
Medium-short horizon (3-8 years), age 50-65, values safety but open to modest growth, uncomfortable with high volatility, moderate experience. Focus: Income + some inflation protection. Common for pre-retirees.
3
MODERATE — Core Balanced Investor
7-15 year horizon, age 35-55, comfortable with moderate market swings for reasonable returns, some experience, stable finances with emergency fund. The "default" prudent investor profile used by most advisors for balanced portfolios. Most common bucket.
4
MODERATELY AGGRESSIVE — Growth with Guardrails
Long horizon (10+ years), younger professionals, willing to accept noticeable volatility for higher expected returns, good market knowledge, views dips as opportunities. Typical: High earners in accumulation phase with stable careers.
5
AGGRESSIVE — High Growth Tolerance
Very long horizon (15+ years), high risk capacity (stable high income, large net worth), experienced investor, excited by volatility and market timing opportunities, prioritizes maximum long-term returns over short-term comfort.
6
VERY AGGRESSIVE — Maximum Growth
Extremely long horizon or high wealth (can afford total loss of portion), deep experience/knowledge, psychologically resilient to 50%+ drawdowns, often younger investors or entrepreneurs comfortable with concentrated bets or alternatives. Highest equity/alternative allocation.
Why these buckets? We mapped thresholds to align with real-world industry models (Vanguard’s 9 allocations, Schwab’s risk profiles, Edward Jones/Morningstar 5-tier scoring scaled to 6 for granularity).
Questions were selected to capture both Risk Capacity (objective: time, finances, liquidity — Q1,2,7) and Risk Tolerance (subjective: psychology, behavior, experience — Q3-6,8-10), following best practices from academic scales (e.g., Grable & Lytton) and regulatory suitability requirements.
Note: Risk profiles can evolve. Reassess annually or after major life events. This is an educational starting point — professional advisors perform deeper suitability analysis including KYC, concentration risk, and tax considerations.