In the past year or so, I’ve personally taken two risk profile questionnaires. The first, by Vanguard, pegged my stock allocation at 70%, while the second, from Wealthfront, put me at 91% stocks and commodities. In reality, I’m about 45% in risky assets and not about to change.

Though risk profile questionnaires are flawed in assuming the way we feel about risk is stable, a much bigger flaw is that they look only at willingness to take risk and ignore our client’s need to take risk.

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