LPL Risk Scoring Method

Understanding the Investment Risk Spectrum.

Risk scores provide a framework for considering investment approaches with different levels of risk and potential return. The categories below outline how each approach relates to income needs, growth objectives, risk tolerance, and investment time horizon.

RISK SCORE

1-19

Income with

Capital Preservation

  • Need for capital preservation and current income
  • No focus on growth
  • Lowest tolerance of risk
  • Shortest investment horizon

RISK SCORE

20-39

Income with

Moderate Growth

  • Need for current income
  • Moderate focus on growth
  • Low tolerance for risk
  • Short/intermediate investment horizon

RISK SCORE

40-59

Growth with Income

  • Equal focus on growth and current income
  • Moderate tolerance for risk
  • Intermediate investment horizon

RISK SCORE

60-79

Growth

  • Little need for current income
  • Focus on growth
  • High tolerance for risk
  • Intermediate/long investment horizon

RISK SCORE

80-100

Aggressive Growth

  • No need for current income
  • Focus on aggressive growth
  • High tolerance for risk
  • Long investment horizon

Find Your Comfort With Risk.

Your income needs, growth objectives, and time horizon help shape your investment approach. Contact our team to discuss how these considerations fit into your financial plan.