Each year, we send you a link to complete your risk questionnaire.
It takes five minutes; it’s not glamorous and, for many, it sits somewhere between “important admin” and “a mild interruption to the day.” But it serves a deeper purpose in your financial plan than most people realise.
At face value, the questionnaire measures your willingness to accept investment risk. This is useful, but it naturally oversimplifies reality.
We know that risk appetite is never fixed, it can be contextual and change over time.
Yet the questionnaire is helpful because it lets us know how you’re likely to respond when markets fall, which they inevitably will.
Knowing this helps us coach you through the temporary, sometimes uncomfortable, moments that accompany long-term investing.
Behavioural finance research consistently shows that investor behaviour, not market performance, is the biggest determinant of long-term success.
The landmark DALBAR study, updated annually for nearly 30 years, repeatedly finds that the average investor underperforms the markets largely because of emotional decision-making during volatile periods.
If we can anticipate your instincts, we can guide you towards better outcomes.
At Barnaby Cecil, the risk questionnaire isn’t our only compass. WealthMap also helps us answer two questions that are important:
Some clients don’t need to take much risk at all to achieve everything that matters to them. Others find that a moderate increase in risk opens up significant possibilities.
This has nothing to do with personality and more to do with financial resilience.
Someone with substantial cash reserves, strong income stability and low fixed outgoings can absorb more volatility than someone whose monthly costs are barely covered.
Capacity is structural, not emotional.
Willingness, need, and capacity are distinct ideas. The magic of financial planning is balancing them.
Here’s something we’ve noticed.
Many of our clients are now in their third or fourth annual review with us, so they’ve seen a long-term plan, built through WealthMap, working in real time.
This means they have experienced market downturns and recoveries, and watched their portfolios behave broadly in line with expectations.
And a pattern has emerged: clients’ stated willingness to take risks is increasing over time.
We think this comes down to one thing: confidence — not blind optimism, not speculation.
Confidence borne of seeing that the plan holds up under pressure; that volatility is normal; that they stay on track even when headlines are noisy; that the system works.
It’s a powerful shift. And it’s one of the most encouraging indicators of long-term success.
Not necessarily.
Your plan dictates the risk you need to take. Your life situation dictates the risk you can absorb. And your questionnaire helps us understand how you’re likely to behave during stressful periods.
An increased willingness to take risks is a useful data point—not a mandate to change anything. But it does tell us we’re moving in the right direction.
So even if the form feels routine, it plays an important role by:
Financial planning is not about chasing higher returns. It’s about aligning your money with the future you want and building the confidence to stay the course.
If our annual questionnaire helps you do that—even in a small way—then it’s time well spent.
Thank you for completing it each year. It’s one of the quiet pieces of work that keeps your plan on track, and helps many clients become more confident, long-term investors.
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