Financial Services Sales Agent how-to
How to Assess a Client’s Risk Tolerance
Recommendations must match the client’s goals and comfort.
Quick answer
Recommendations must match the client’s goals and comfort. In short: ask; review; use, then complete the remaining steps below.
Step by step
Ask about goals and time horizon.
Review income, assets and debts.
Use a risk questionnaire.
Discuss reactions to market drops.
Document risk tolerance.
Use it to guide recommendations.
Safety reminders for financial services sales agents
- Follow FINRA and SEC rules
- Protect client data
- Avoid conflicts of interest
- Manage stress during volatile markets
Key terms
Stock · Bond · Mutual fund · ETF · Portfolio · Asset allocation: see the full financial services sales agent glossary.