How they describe themselves: Tolerisk has pioneered the 2-dimensional risk tolerance assessment. Our patent-pending SaaS technology provides a framework for fiduciary advice, separately incorporating a client’s willingness to accept risk, through traditional psychometric profiling, and their ability to take risk, by using traditional fixed income mathematics to analyze cash-flow chronology. Tolerisk’s deep analytics incorporate dynamic asset allocation, variable inflation assumptions, and life expectancy independently by spouse. The platform’s simple user interface makes the experience easy for advisors, powerful for clients, and overall can drive better retention and more referrals.
How they describe their product/innovation: Tolerisk 401(k) is a new tool that allows advisors to provide custom financial planning advice to participants in minutes instead of hours. Low median 401(k) participant balances have historically made customized advice prohibitively time consuming. By leveraging Tolerisk’s deep analytics and simple user interface, participants gain customized insight about their financial plan and asset allocation. Tolerisk 401(k) creates a custom glide path for each participant’s asset allocation based on time horizon, savings rate, spending rate, assets outside the 401(k), other retirement income, tax rates, and personality. No more need for generic Target Date Funds, based solely on one variable.
Product distribution strategy: Direct to Business (B2B), through other fintech companies and platforms