Illuminate uses a point-based system to match you with the most suitable investment portfolio based on your personal preferences, financial goals, time horizon, and risk tolerance. Here's how our recommendation process works:
Assessment Questionnaire
When you sign up, you'll answer six multiple choice questions covering:
Investment goal: What you want to achieve with your investments
Investment time horizon: When you'll need to access your invested money
Investment experience: Your familiarity with investing and financial markets
Risk tolerance: How you may react to potential market losses
Investment preference: Your comfort level with different types of investments
Age range: Your current stage in life
Point Allocation System
Each answer is assigned a specific point value (2, 4, 6, or 9 points):
Lower points (2-4) indicate more conservative preferences
Higher points (6-9) indicate more growth-oriented or aggressive preferences
Risk Score Calculation
Your answers are tallied into a total point score, which translates to one of eight portfolio risk levels:
Portfolio Risk Level | Allocation (Stock/Bond) | Point Range |
1 | 20/80 | 0-13 |
2 | 35/65 | 14-21 |
3 | 50/50 | 22-28 |
4 | 60/40 | 29-32 |
5 | 70/30 | 33-35 |
6 | 80/20 | 36-41 |
7 | 90/10 | 42-50 |
8 | 100/0 | 51-54 |
Portfolio Construction
Each portfolio is built using modern portfolio theory principles while incorporating institutional-grade climate and sustainability data.
Making Changes
You can always update your risk profile if your circumstances change. To edit these settings, go to the Profile tab, then Settings, then Investment Profile. Your future portfolio allocations will be adjusted accordingly.