Risk Budget Calculator

CLS’s Risk Budgeting Methodology is the foundation of our portfolio construction process. We start by defining your personalized Risk Budget, based on your unique investing time horizon, ability to tolerate risk, and investment goals. This number, which is expressed as a percentage of a well-diversified, global equity portfolio, represents the amount of risk you are comfortable taking on in exchange for potential returns. Your individual Risk Budget is the risk level at which we manage your portfolio.

To calculate your personalized Risk Budget, please select one answer from each of the following questions.

The higher your score, the more aggressively your portfolio will be allocated. If you select a score under 20, CLS's methodology may not be appropriate for your portfolio.

Which one of the following best describes your primary investment objective?

Approximately how many years do you expect to continue to invest your assets in the stock market?

Hover over your response and click to make your selection.

Assume you are investing $100,000 and can choose from the five hypothetical portfolios shown in the table below. The dollar values for each portfolio represent two possible returns – low and high – after one year.

Assuming there is an equal chance of achieving either result (low or high), indicate which portfolio represents the maximum risk/return trade-off you would be willing to accept.

Hover over your response and click to make your selection.

The maximum gain or loss on an investment is impossible to predict. The ranges shown in the chart are hypothetical and are designed solely to gauge an investor’s tolerance for risk.

Please indicate the level of risk with which you are most comfortable (select one response).

Hover over your response and click to make your selection.

If you select "0", “1” or “2”, CLS’s investment methodology may not be appropriate for your portfolio.

How long are you prepared to wait for your account to return to its original value after a down market?

Hover over your response and click to make your selection.

My current and future income (salary, pension, etc.) is:

Hover over your response and click to make your selection.

How able are you to handle financial emergencies with assets outside of your CLS account(s)?

Hover over your response and click to make your selection.

Based on your responses, your tabulated Risk Budget is:

This number, expressed as a percentage of the risk of a well-diversified, global equity portfolio, represents the amount of risk you are willing to take on in exchange for potential returns.

If you are already working with an advisor who is approved to do business with CLS, you may print this page or take note of your score. Your advisor will be able to discuss next steps with you. Alternatively, you may wish to explore our website to learn more about Risk Budgeting and our available investment strategies.

If you are not already working with an advisor who is approved to do business with CLS, please complete this form to receive a list of approved advisors in your area.

The higher your score, the more aggressively your portfolio will be allocated. If you select a score under 20, CLS's methodology may not be appropriate for your portfolio.

Risk Budget Questionnaire Progress