Investors of all kinds, even the most experienced, can struggle when faced with financial losses. This can lead them to make poor decisions that can compound the negative impact on their finances.
To reduce the likelihood of this happening, we have developed a short Capacity for Loss questionnaire to measure the financial capacity of individuals by assessing their circumstances. When combined with the main ATRQ, it gives a rounded picture of a person’s circumstances and attitude from which to begin a wider discussion about a financial plan.
Unlike the main ATRQ, our Capacity for Loss questionnaire is based on focus group testing and development rather than psychometrics or statistical analysis. This is because circumstances vary for everyone and cannot be expressed in the same way as attitude to risk.
The Capacity for Loss questionnaire is included in the pre- and post-retirement versions of the ATRQ.