BOSTON--(BUSINESS WIRE)--FinMason, a financial education company that provides free, unbiased, web-based investment tools for retail investors, launches FinScore, a new risk-tolerance assessment tool for individual investors, retirement plan participants and financial advisors designed to help match investors to risk-appropriate portfolios.
Rather than relying on text-heavy behavioral questions of traditional methods, FinScore determines your risk tolerance in the same way an optometrist measures your vision, by showing you two portfolios and letting you decide which one you like more. Based on the user’s choice, the risk tolerance tool then repeats the selection process using a more conservative or aggressive level of risk and reward until the user can discern no further improvement.
The result is a FinScore from 1 (very conservative) to 100 (very aggressive). Once investors know their risk tolerance, they can have more productive conversations with an advisor or use it as a guide to help weed out investment portfolios that may not be right for them.
This method is made possible by FinMason’s innovative analytics, which allow investors to make a confident decision between two portfolios, even if the investor has little or no financial training.
“Determining an investor’s appetite for risk is an important first step in the investment process, but many current methods only assess risk using confusing questionnaires developed by behavioral economics,” said Kendrick Wakeman, CEO of FinMason. “FinScore assesses risk in a direct and intuitive way, allowing users to decide for themselves which risks are appropriate and which are not when investing for retirement.”
FinMason is a Boston, Mass.-based financial technology firm dedicated to providing financial education to consumers. FinMason’s leading product, Finspector, is a free, unbiased, web-based investment research tool for all retail investors. For more information, visit http://finmason.co/hp.