It’s different for retired clients: Understanding risk capacity versus risk tolerance

The bottom line
The funded ratio bases the asset allocation on risk capacity rather than the risk tolerance, as defined by a questionnaire. This helps you to focus on meeting your clients’ needs for sustainable withdrawals, predictability, and the flexibility to respond to changing circumstances.Russell Financial Professional Outlook is a product of Russell Investments, produced independently of Russell’s investment and manager research services. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness cannot be guaranteed. The information, analysis and opinions expressed herein result from surveys of persons outside Russell Investments and may not represent the opinion of Russell Investments, its affiliates or subsidiaries. This report is provided for general information only and is not intended to provide specific advice or recommendations for any individual or entity. This is not an offer, solicitation or recommendation to purchase any security or the services of any organization. RFS 13936