Setup A Risk Tolerance Questionnaire
A Risk Tolerance Questionnaire, (RTQ) is used when the Risk Score Fund Path (Help Me Choose) is selected during the Plan Details setup or when changing Investment Paths for a Plan.
When this Path is selected, the Participant answers a set of Risk Tolerance Questions on the Enrollment site to determine which Funds / Investment categories to place them in.
In order for the Risk Score Fund Path (Help Me Choose) to be available on a Plan, the Enrollment Experience Type must be set to iJoin Standard.
The Risk Tolerance Questionnaire is established for new and existing Plans on the Plan Settings / RTQ tab. There is a default survey provided by iJoin that can be used or copied or you can setup your own RTQ for the Plan(s).
To see the iJoin Default RTQ see iJoin Default Risk Tolerance Questionnaire
For more information on Enrollment Experience Type settings see What Is Enrollment Experience Type?
For more information on Investment Paths see Setup Investment Paths
Setup the RTQ
The RTQ survey questions and answers / point values are established on Plan Settings / RTQ tab.
1. Click the Settings tab.
2. Click the RTQ tab.
Here, you are able to choose the iJoin Default Survey RTQ or create your own.
3. To choose the iJoin Default Survey, click the Actions drop down menu then click Create RTQ.
3.1 The "Clone of iJoin Default Survey" will populate under My Risk Tolerance Questionnaires and you are able to edit, finalize, delete, clone, or view the history of the RTQ by using the Actions drop down menu.
3.2 To rename the RTQ, click Actions then Edit.
3.3 Rename the RTQ.
4. To create your own RTQ, click the Add button.
4.1 Name the RTQ.
4.2 Add questions to the RTQ.
Note: There is no limit to how many questions can be added to an RTQ but our recommendation is no more than 20 for a quick and easy enrollment process.
4.3 Assign a point value range for each answer.
Note: There is no limit to how many answers can be added to each question but we recommend no more than 4.
5. In order to finalize your RTQ to be used within your Plans, click Actions then click Finalize.
Add the RTQ to the Plan
During Plan Setup on the Plan Details / Investment Paths tab, the RTQ can be added and setup on the Plan. The RTQ categories, risk scores, min / max retirement year ranges, funds and allocation percentages are entered.
6. Click on the Plan in Plan Summary then click on the Investment Paths tab.
7. Toggle the Risk Score Fund Path (Help Me Choose) to On. Note: This Path is only available on iJoin Standard Experience Type. For more information on Experience Type settings see What Is Enrollment Experience Type?
8. You can copy the RTQ settings from another existing plan by selecting the plan from the drop-down list and selecting Clone Settings.
You will be asked to confirm the selection. Validate that the desired settings and Funds will be established for this plan and then select OK to load the settings.
9. Use the drop-down menu in the Risk Tolerance Questionnaire field to select the RTQ to be used for the Plan.
10. Add the categories which will be used as a result of the answer point values assigned in step 4.3 above. Click the Add Category button.
10.1 Name the category in the Description field. (e.g., Conservative, Moderate, Moderately Aggressive, Aggressive)
10.2 Enter a number value, (based on the point value range assigned in the answers in step 4.3 above) in the Min Years to Retire field.
10.3 Enter a number value, (based on the point value range assigned in the answers in step 4.3 above) in the Max Years to Retire field.
10.4 Enter a number value, (based on the point value range assigned in the answers in step 4.3 above) in the Min Risk Score field.
10.5 Enter a number value, (based on the point value range assigned in the answers in step 4.3 above) in the Max Risk Score field.
The typical scoring methodology is as follows;
- Conservative: score of 3 to 6
- Moderately Conservative: Score of 7 to 11
- Moderate: Score of 12 to 16
- Moderately Aggressive: Score of 17 - 21
- Aggressive: Score of 22 to 25
10.6 Click Save.
11. The Risk Tolerance Questionnaire category is added to the Help Me Choose Path. Use the Actions drop down menu to make edits or to remove. Continue to next step.
12. Assign the funds to be used for the category. Click the Add Fund button.
13. Use the drop-down menu to filter the fund selection list by Funds for this Plan only or All Funds for your Organization.
Note: If new funds have been added to the Plan in recordkeeping system, a Plan Sync is required to bring the funds into iJoin for the Risk Score Fund path. Additionally, a fund can only be added to iJoin if it already exists on the Plan in the recordkeeping system. For more information on Plan Sync see Process Plan and Participant Syncs
14. Search for the fund in the Search Funds field by typing the name of the fund or the Ticker then click the Search icon.
15. Enter the Estimated Rate of Return and the Allocation Percent for the fund.
Note: More than one fund can be added per category but the allocation must be a total of 100%.
16. Click Save.
17. Continue to Add Categories and their Funds with allocations totaling 100% for each category. (Repeat steps 9-15 as needed)
18. Once complete, toggle the switch for each category to Show to see the funds and allocation percentages for each category.
19. Use the Actions drop down menu for each Category or Fund to make edits or to remove.
Note: The Risk Scores and / or Years to Retire values cannot be duplicated. If this occurs, an error icon will display for the Categories which need to be resolved.
20. In order for the Participant to see the "Help Me Choose" path option during enrollment, make sure the path stays On.
21. An auto save message will appear at the top of the screen when the Investment Path Options fields are changed. The draft Plan edits are not visible on the Participant Enrollment site until you click the Activation button.
For more information on setting up Enrollment see Setup Enrollment
For more information on setting up Plan Details see Setup Plan Details