Questionnaire and Account Opening/Transfer

Questionnaire and Account Opening/Transfer

Now that your clients have the ability to sign an electronic envelope with all the correct documentation to open or transfer an account with you as their rep, and be matched to a portfolio model based of their risk tolerance level, what questions do you want to use to access their risk and how is this risk calculated? Use the Questionnaire section to select these questions. To questions you select are simply based off your preference of which ones you like best to determine risk.

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How is the risk calculated? Each answer of every questions is weighted on a scale of 1 - 5. For example, pretend you select the question What is your current age?

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The most conservative answer is weighted with the number “1” whereas the most aggressive answer is weighted with the number “5”. Using the above example, the answers for the question What is your current age? are weight as so

Over 71 years old is “1”

56 - 70 years old is “2”

41 - 55 years old is “3”

26 - 40 years old is “4”

18 - 25 years old is “5”

Let’s pretend the client or prospect answering the question selects the answer 41 - 55 years old. This means their first answer is weight with the number 3. We can think of this as a risk number. A risk number of 3 indicated someone in the middle; a person who belongs more in a moderate or balanced portfolio. But the user has to answer at least 5 questions. As the client or prospect answers all the questions, the dashboard in turn adds up the all the risk numbers of each answer to generate a total. That total is then divided by the total of the highest possible answer score.  For example, if you selected 7 questions that all have “5” as the highest possible score per questions, you take those highest possible scores and add them up: 5 + 5 + 5 + 5 + 5 + 5 + 5 + = 35. You then take the scores of the answers he or she selected. For example, if the client or prospect selected the questions weighted as: 3 + 5 + 5 +2 + 1 + 3 + 5. There score is a 24. You then take the client/prospect’s total score divided by the highest possible score: 24/35 = 0.6857142. To make it a percentage, move the decimal point two times to the left: 68.5%. What does 68.5% mean? This means your user will be matched to your Moderate model. Below is the scale showing you the breakdown of risk level percentage:

Very Conservative             1% - 20%
Conservative                      21% - 40%
Balanced                              41% - 60%
Moderate                             61% - 80%
Aggressive                          81% - 100%

So now you have the electronic envelope made with all the the documents needed for your clients and prospects to open and transfer accounts. You have your rep code(s) in your Profile Settings to ensure your custodian know you’re managing the account. You have built the model portfolios and assigned a risk level to them. You have also selected the risk level tolerance questions you want your clients and prospects to answer to assess their risk tolerance level. You also understand how that risk level is calculated.

Your clients and prospects are not able to open and transfer accounts. Now let’s show you what your clients and prospects experience from their end. Remember, only Firm Admins are allowed to select questions. Click here to access the Firm Admin article addressing how to add questions to the questionnaire section. If you are not a Firm Admin, contact your Firm Admin to ask about gaining administrative access.

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