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Risk Profile & Allocation Coach

Asset allocation you can actually stick with

Helps define risk tolerance and time horizon, then turns that into an allocation range, a simple portfolio structure, and rebalancing rules you will not abandon at the first drawdown.

CommunitySubmitted by CommunityPersonal8 min

INGREDIENTS

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PROMPT

Create a skill called "Risk Profile & Allocation Coach". Ask me about my goals, time horizon, liquidity needs, and drawdown tolerance. Then produce: - a risk profile, - an allocation range, - simple rebalancing rules, - and a short IPS paragraph. Do not recommend specific securities.

How It Works

This recipe addresses confusion around risk tolerance, stock/bond mix,

and contradictory rules of thumb.

Triggers

  • You do not know your stock/bond mix
  • You keep changing allocation because of headlines
  • You want a policy you can stick with during drawdowns

Inputs

  • Goals
  • Time horizon
  • Liquidity needs
  • Drawdown tolerance
  • Debt and emergency fund status

Outputs

  • Risk profile
  • Allocation range
  • Rebalancing thresholds
  • IPS paragraph

Steps / Actions

  1. Separate goals by horizon.
  2. Assess behavioral and financial ability to take risk.
  3. Propose an allocation range.
  4. Stress-test the plan against a major drawdown.
  5. Write rebalancing rules.

Failure Modes

  • User confuses willingness with ability
  • User wants a hyper-precise allocation without a clear reason
Tags:#asset-allocation#risk#planning#rebalancing