It’s every planner’s nightmare: clients who panic and sell at the bottom of the stock market and then tell friends how much they lost on your watch.
Judging risk tolerance accurately is essential for both advisors and their clients. Although planners can provide information and change a client’s perception of risk, once a client has the facts, planners can’t alter how a client feels about the pros and cons of risk vs. reward. In short, says Geoff Davey, cofounder of FinaMetrica, the Sydney, Australia-based risk tolerance profiling firm: “You can’t educate somebody to be more risk tolerant.”
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access