Overall Risk Objective

Hi all,

Regarding combining ability/willingness to decide overall risk, what are the key heuristics you are all using?

ie- if portfolio is >10m and required return is small you can take the average of ability/willingness, otherwise if willingness is below average, go with below average.

Just after a little bit of consensus because it seems very subjective.

Any thoughts would be extremely helpful. Thanks!

indeed very subjective. find clues in the question that may give you an idea of

-the relativity between investable assets and required rate of retrun.

-how the client acquired his wealth

-the fact that he/she has a risk-averse spouse

-dependecy on his investable asset (any dependents)

things like that.