Totum Risk, Facts over Feelings

Totum Risk provides a unique risk tolerance tool for financial advisors that calculates how much risk an investor can take given their current life situation (risk capacity) instead of the traditional model that only looks at how much risk an investor wants to take (risk preference).  

Multi-Scoring Process

  • Risk Capacity Score based on a clients life situation.  This score is where they should be.
  • Risk Preference Score is psychological and changes all the time.  This score is where they want to be today.
  • Portfolio Risk Score is where they are today.  Adjust the portfolio to get closer to the Risk Capacity score.

Compliant, Safe Advice

  • A Preference score alone will not hold up in arbitration.  Totum protects the advisor with multiple scoring.
  • The Advisor Insurance Policy. 60+ page quantitative risk models built by a team of Economic PhD's.
  • Automatic archiving of risk questionnaires and scores for your records and any audits.

Proposals for your Meetings

  • White label and custom reporting
  • Investment Policy Statements
  • Analytics, Stress test, historical return comparisons, Monte Carlo Simulation, and more.
  • Compare your models to your clients or prospects portfolio.

PARTNER INTEGRATIONS

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jb

One of the most persistent challenges for advisors is to get an accurate gauge of a client’s risk tolerance. With a fresh approach to risk analysis, Totum is a promising new addition to the advisor tool kit.

Joel Bruckenstein

Technology Tools for Today

Huey, Patrick

My recent book confronted recency bias and risk homeostasis, dual impediments to proper long-term investing. Totum’s dynamic assessment tool is a natural conversation starter to uncover the short-term thinking that leads to unrealistic assumptions about risk.

Patrick Huey,CFP®, CAP®

Owner, Victory Independent Planning, LLC