What the free score checks
The Flowvest calculator turns risk tolerance, allocation, cash position, and rebalancing habits into a simple score so you can spot whether risk is intentional or accidental.
Step 1
Match risk to when you need the money
A 90% stock portfolio can be reasonable for a young long-term investor and reckless for money needed in two years. The same allocation means different things depending on the deadline. Before judging risk, split the portfolio by purpose: long-term wealth, medium-term goals, and near-term cash needs.
- •Money needed within one to three years usually deserves less market risk.
- •Longer time horizons can absorb more volatility if behavior stays disciplined.
- •Emergency savings should be separate from the investment risk budget.
Step 2
Stress-test your likely behavior
The portfolio that looks optimal in a spreadsheet can fail if it causes panic selling. A simple behavior test is to imagine a 20% to 35% equity drawdown and ask what you would actually do. If the honest answer is sell everything, the allocation is probably too aggressive even if the expected return is attractive.
- •Write down the loss amount in dollars, not only as a percentage.
- •Decide in advance whether you would rebalance, hold, or reduce risk.
- •Lower risk until the plan is boring enough to follow during stress.
Step 3
Separate compensated and uncompensated risk
Some risk is necessary to earn long-term returns. Other risk is accidental: too much employer stock, a forgotten cash pile, duplicate funds, or a single sector controlling the account. A good risk check does not eliminate risk; it removes risks that are not aligned with the investor's goal.
- •Keep risk that supports the plan, such as broad equity exposure for long horizons.
- •Reduce risk that comes from neglect, overlap, or oversized single positions.
- •Use a recurring score to catch drift before it becomes a crisis decision.
Run the score before a market drop tests your plan for real.
The calculator below is free, shows the score instantly, and does not require brokerage credentials. Email is optional if you want the follow-up plan.
Jump to the free tool →What's Your Portfolio Health Score?
Answer 4 quick questions and get your personalized score in 30 seconds — free, instant, no account needed.
FAQ
Common questions about this portfolio check
What score means my portfolio is too risky?
A low health score is a warning to review the portfolio, not a command to sell. The biggest red flags are heavy concentration, weak cash planning, no rebalancing rule, and an allocation that conflicts with your time horizon.
Is a 100% stock portfolio too risky?
It can be appropriate for some long-term investors with high risk tolerance, stable income, and no near-term withdrawals. It can be too risky for investors who need the money soon or are likely to sell during large drawdowns.
How often should I recalculate portfolio risk?
Quarterly is enough for many long-term investors, with extra checks after large market moves, major deposits, job changes, or a shift in goals. The point is to catch drift without turning investing into daily monitoring.