Powered by highly sophisticated and extensively tested financial engines that compute asset allocation results based on the principals of Modern Portfolio Theory. The questionnaire you complete prior to running FinPortfolio s asset allocation analysis helps to determine roughly the acceptable level of risk you should take on when investing for a given financial goal.
Household income works the same way.
The more you earn annually, the more risk you can take to achieve your financial goals. Based on your questionnaire responses, FinPortfolio determines a suitable risk profile, and recommends an asset allocation based on it. It s only a recommended allocation that fits your risk profile. The interactive Java applet will allow you to fine tune your risk and return trade-off based on your actual financial goal. Your targeted investment wealth is expressed in present dollars, discounted for inflation.