Cerulli: Advisors Out of Touch With Clients’ Risk Profiles
Specifically, the firm’ research reveals a significant disconnect between the percentage of advisors who believe their clients have an aggressive risk level (26%) versus what clients actually report (8%), according to Patrick Newcomb, senior analyst at Cerulli Associates.
“Most advisors complete a brief, five- or six- question risk-profile questionnaire with their clients to determine basic information, such as the client’s time horizon and reactions to different market cycles,” stated Newcomb. “In many cases, this is the only interaction before determining the risk model that parallels the appropriate asset allocation.”
