Your Clients Are Clueless About Their Risk Tolerance
Advisor Perspectives
OCTOBER 23, 2024
Determining your client’s risk tolerance is a critical first step in constructing a tailored investment portfolio.
Risk Tolerance Questionnaires: Useful or Pointless?
Advisor Perspectives
SEPTEMBER 18, 2024
A client recently refused to complete my risk tolerance questionnaire. After looking through our instrument, with its fairly standard hypotheticals about market movements and portfolio returns, they said, “That’s not how I think about risk.”
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How to Determine Your Client’s Risk Tolerance
BlueMind
SEPTEMBER 3, 2022
Category: Clients Risk. Determining the client’s risk tolerance is not an exact science and requires you to communicate with your client. What Does The Word “Risk” Mean For Your Clients? For some clients, “risk” maybe something exciting or daring that they enjoy and not something they generally avert from.
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The 60/40 Portfolio is Back! *after not going away
The Big Picture
APRIL 19, 2023
Check out these recent headlines about the classic 60/40 investment strategy 1 : The 60-40 Investment Strategy Is Back After Tanking Last Year BlackRock Ditches 60/40 Portfolio in New Regime of High Inflation Why a 60/40 Portfolio Is No Longer Good Enough The 60-40 portfolio is back Sorry, but all of these headlines utterly miss the point.
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Risk Tolerance Dysfunctions
Inside Information
JUNE 25, 2024
For more years than I’d care to name, I’ve been trying to put my finger on exactly why I have a such a huge problem with the traditional (Think: Riskalyze, now Nitrogen) risk tolerance assessments in the financial planning profession. You can actually test various bear markets and adjust accordingly.)
How to Determine Your Investment Risk Tolerance Level
WiserAdvisor
MAY 26, 2023
It is essential to choose investments that match your risk appetite to avoid unnecessary stress and surprises later. A financial advisor can help you understand your investment risk tolerance. This article will focus on the risks of investing, how they impact you, and what you can do to determine your risk appetite.
Weekend Reading For Financial Planners (October 19–20)
Nerd's Eye View
OCTOBER 18, 2024
Also in industry news this week: 43% of wealth management firms are frustrated with the effectiveness of their CRM software, spurred on by challenges with integrations and workflows, according to a recent survey The Social Security Administration this week announced a 2.5%
Why Quality Factor ETFs Have Seen Large Inflows Over The Last Year – And How Advisors Can Use Them In Client Portfolios
Nerd's Eye View
JULY 3, 2024
As a result, advicers have more options than ever to add value for their clients by tailoring investment portfolios that are specific to their unique needs, goals, and risk tolerance. in mind, there are 3 primary ways that advicers can use Quality ETFs in portfolios. size, industry, location) of early mutual funds.
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Calibrating Your Risk Tolerance
The Irrelevant Investor
AUGUST 25, 2019
If the drop on Friday made you nervous about your portfolio to the point where you felt like pushing a button, you're probably taking too much risk. There are two ways that risk can ruin you: by taking way too much of it or taking way too little. For many, Friday was one of those days. That's not what I'm saying.
For Risk-Tolerant Investors, Spot Bitcoin ETFs Could Help a Traditional Portfolio
Advisor Perspectives
JANUARY 27, 2024
Registered investment advisors have long leaned on the 60% equities/40% fixed income portfolio structure. While it’s not perfect, it has served clients well, broadly speaking.
Portfolio Income And How To Earn It
Clever Girl Finance
MARCH 14, 2023
Portfolio income is the money you make from an investment account, and there are several ways to earn it. We’ll also go over the benefits of growing the income for your portfolio and how to deal with taxes from investments! What is portfolio income? Portfolio income is income earned from investment accounts.
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Your True Risk Tolerance
The Irrelevant Investor
FEBRUARY 6, 2018
After nine consecutive years of positive returns, it's likely that a lot of people's asset allocation was out of whack with their true risk tolerance. If investing was just about maximizing returns, we'd all be invested in a 100% stock portfolio. The post Your True Risk Tolerance appeared first on The Irrelevant Investor.
5 Questions Using Risk Assessment Data That Help Advisors Understand Clients’ True Concerns About Risk
Nerd's Eye View
MAY 8, 2024
step when onboarding a new client, as making any sort of recommendation is impossible without first understanding how comfortable clients may be when their portfolios inevitably experience volatility.
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Personal finance links: converting money into time
Abnormal Returns
DECEMBER 21, 2022
peterlazaroff.com) Risk tolerance Five behavioral tricks for long-term investors including 'Have a small side account.' bestinterest.blog) On the difference between risk tolerance and risk perception. morningstar.com) Can you tweak your risk tolerance?
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Portfolio Rebalancing, Part 1: The Ideal Rebalancing Range
Advisor Perspectives
OCTOBER 28, 2023
The ideal rebalancing range varies by investor and depends on an investor’s risk tolerance and market views, among other factors. In a prolonged equity bull market, wider rebalancing ranges will result in higher returns, but also increase a portfolio’s risk.
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Reexamining the Retirement Investment Portfolio
Integrity Financial Planning
OCTOBER 9, 2023
But no matter if you’re considering wealth growth or income generation, your investment decisions will involve calculations around your risk tolerance and unique goals as well. An investment portfolio focused on income generation has unique qualities, goals, and risks. [1] What is an Income-Generation Investment Strategy?
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4 Reasons Why You Need To Rebalance Your Portfolio
WiserAdvisor
DECEMBER 3, 2023
Creating a well-diversified portfolio is a pivotal task in investing. However, your work is far from complete, even after drafting a diversified portfolio. Rebalancing is a critical step that can help you optimize your portfolio’s performance. This helps you maintain a risk profile that resonates with your financial goals.
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When Are Advisors (Financially) Liable For Negligent Investment Advice? (And Who Pays For It)
Nerd's Eye View
JUNE 12, 2024
Which means that when an advisor recommends a certain investment strategy for a client, their standards of care should dictate that they first make sure that the strategy is within the client's tolerance for risk.
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Investing 100% of Your Portfolio in Stocks
A Wealth of Common Sense
JULY 13, 2023
A reader asks: I am a 34-year-old with a high risk tolerance. All of my investment accounts are 100% invested in stocks. The one thing I have a hard time finding a tried and true answer on when I do research is how to best allocate my stock investments among large-cap, mid-cap, international, emerging markets, etc.
Personal finance links: peaks and valleys
Abnormal Returns
JULY 12, 2023
stocks are enough for your portfolio. morningstar.com) On average, people overestimate their risk tolerance. James Choi about how economic theory explains consumer behavior. rationalreminder.libsyn.com) Dave Nadig talks ETFs and more with FactSet’s Elisabeth Kashner. etftrends.com) Peter Lazaroff on whether U.S.
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How Communicating Guardrails Withdrawal Strategies Can Improve Client Experience And Decrease Stress
Nerd's Eye View
MARCH 20, 2024
By distilling hundreds of pieces of information into a single number that purports to show the percentage chance that a portfolio will not be depleted over the course of a client's life, advisors often place special emphasis on this data point when they present a financial plan.
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How Asset Allocation Impacts Your Portfolio
WiserAdvisor
DECEMBER 2, 2022
When investors create an investment portfolio, they consider several factors, like risk, asset class, inflation, etc., However, what is equally critical when it comes to creating a portfolio is asset allocation and selection. Read more to learn about asset allocation and how it can impact your portfolio.
The Benefits of a Diversified Investment Portfolio
International College of Financial Planning
AUGUST 31, 2023
This is where diversifying your investment portfolio comes into play. Diversifying your investment portfolio is a vital strategy for managing risk, optimizing returns, and achieving your financial goals. However, diversifying your investment portfolio can help reduce your overall investment risk.
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Top 10 Dividend Growth Portfolio
Dear Mr. Market
AUGUST 5, 2022
Not only are we sharing the importance of dividends in this article, but it’s also the official roll-out of the Top 10 Dividend Growth Portfolio strategy managed by My Portfolio Guide, LLC. The Top 10 Dividend Growth Portfolio strategy is a concentrated portfolio.
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How Sequence-Of-Inflation Risk Impacts Retirees Beyond Just Sequences Of Returns
Nerd's Eye View
SEPTEMBER 20, 2023
By exploring high-inflation, low-inflation, and mixed-inflation scenarios, advisors have the flexibility of customizing advice that can more holistically balance a client's spending goals with their risk tolerance.
Are Alternative Investments the Key to Diversifying Your Portfolio?
Fortune Financial
AUGUST 7, 2023
Are Alternative Investments the Key to Diversifying Your Portfolio? If you prefer a more indirect approach, Real Estate Investment Trusts (REITs) allow you to invest in a portfolio of properties without the hassle of direct ownership. Each of these alternative investment options offers its own set of risks and rewards.
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Are Alternative Investments the Key to Diversifying Your Portfolio?
Fortune Financial
AUGUST 7, 2023
Are Alternative Investments the Key to Diversifying Your Portfolio? If you prefer a more indirect approach, Real Estate Investment Trusts (REITs) allow you to invest in a portfolio of properties without the hassle of direct ownership. Each of these alternative investment options offers its own set of risks and rewards.
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Inflation Is A Risk In Retirement, But Most Planning Technology Doesn’t Treat It That Way
Nerd's Eye View
SEPTEMBER 20, 2023
By exploring high-inflation, low-inflation, and mixed-inflation scenarios, advisors have the flexibility of customizing advice that can more holistically balance a client's spending goals with their risk tolerance.
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How to Determine Your Client’s Risk Capacity
BlueMind
SEPTEMBER 11, 2022
However, it should be well understood that a client’s financial profile includes their risk tolerance and their risk capacity. In this article, although we will be focusing on the latter one and why it is significant to determine your client’s risk capacity let’s first understand the difference between the two.
Five Things to do During a Stock Market Correction
The Chicago Financial Planner
JUNE 13, 2022
Ideally you’ve been rebalancing your portfolio along the way and your asset allocation is largely in line with your plan and your risk tolerance. You should continue to monitor your portfolio and make these types of adjustments as needed. Focus on risk. If not perhaps you are taking more risk than you had planned.
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How to Talk About Risk Management With Your Clients
BlueMind
OCTOBER 25, 2022
Category: Clients Risk. When it comes to their investment portfolios many tend to have a low-risk tolerance and with the unsettling economic situation with the ongoing pandemic, the word “risk” has become even more of a fearsome word for clients. That requires investing.
A good time for a risk check-up
Nationwide Financial
JANUARY 25, 2023
Review risk tolerance and current asset allocation strategy It’s important to ensure your clients’ portfolios align with their risk tolerance because taking too much risk can negatively impact their ability to navigate market fluctuations.
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What is Portfolio Rebalancing?
Park Place Financial
MARCH 14, 2022
FINANCIAL PLANNING What is Portfolio Rebalancing? Investments can be risky since markets constantly fluctuate, but strategies are available to help you maintain a well-balanced portfolio. When people buy and sell sections of their portfolio to maintain a consistent asset allocation, they are rebalancing their investments.
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Asset Allocation
MainStreet Financial Planning
AUGUST 16, 2022
There are many steps in building an investment portfolio, in this article, I’ll discuss how asset allocation and risk tolerance are important considerations when investing. In simple terms, asset allocation is the mix of all the different types of investments you have in your portfolio. Some examples include U.S.
Finding Your Best Investing Strategy
Your Richest Life
SEPTEMBER 10, 2024
Your ideal investing strategy will be unique to you: your life phase, goals and risk tolerance will all play a role in informing your “ideal” methodology. Big, broad dreams and more specific, immediate goals are both instrumental in figuring out the best way forward with your portfolio.
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Reasons to Include International Investments in Your Portfolio
Darrow Wealth Management
JUNE 27, 2022
equity may be able to help reduce risk in a portfolio. Having international exposure in your portfolio in the early 2000s and throughout the Global Financial Crisis would have been a key ingredient in reducing overall risk and maintaining some level of investment return. Currency risk and return. in total.².
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Your Retirement Planning Starter Pack
Carson Wealth
MARCH 7, 2024
Your lifestyle, goals, family situation, and risk tolerance will give a unique signature to your retirement plan. Let’s look at a few of the starting points today for a healthy retirement savings portfolio. Check out the risk tolerance survey to get an idea for your risk profile and help you start your personal finance journey.
An Investment Guide for IRAs
Integrity Financial Planning
JUNE 7, 2023
1] What are Your Investment Goals and Risk Tolerance When selecting investments for your IRA, consider your investment goals and risk tolerance. If you are younger, you may be able to take more risks because you have a longer time horizon to earn back potential gains and receive more income in the future.
How Often Should You Rebalance Your 401(k)?
WiserAdvisor
APRIL 25, 2023
When investing in a 401(k), one of the most important decisions you can make is how often to rebalance your portfolio. Rebalancing involves adjusting the mix of assets in your 401(k) portfolio to maintain a desired level of risk and return. This article will explore how often to rebalance your 401(k). Need a financial advisor?
Do You Still Need A Financial Advisor After You Retire?
WiserAdvisor
AUGUST 31, 2023
They can assess your financial situation, long-term goals, risk tolerance, and investment preferences to create personalized strategies. They can also help you optimize your savings and investment plans, ensuring that you maximize your earning potential while minimizing risks.
How Often Should You Rebalance Your 401(k)?
Darrow Wealth Management
OCTOBER 29, 2024
Rebalancing your 401(k) and investment portfolio is an important part of a successful investment strategy. Your asset allocation is the percentage of your portfolio that you distribute between different asset classes, like stocks and bonds. Why do you need to rebalance your portfolio? Why does this matter?
Three key learnings from sports to win the investment game
Truemind Capital
APRIL 5, 2024
One should always be ready for unexpected outcomes and prepare a portfolio that can handle uncertainties. In investments, having too high a return expectation with a lesser ability to take risks can disrupt your game. Having a very low-risk tolerance can compromise achieving decent returns.
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Investing in the Future: CAPTRUST’s AI Stock Portfolio
Zoe Financial
OCTOBER 12, 2023
Investing in the Future: CAPTRUST’s AI Stock Portfolio Updated October 12th, 2023 Reading Time: 6 minutes Written by: Lauren C. Lambert, CFA CAPTRUST Zoe Network Advisor Investing in the Future: CAPTRUST’s AI Stock Portfolio Updated October 12th, 2023 Reading Time: 6 minutes Written by: Lauren C.
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Model Marketplaces and the Future for TAMP Technology
Advisor Perspectives
APRIL 10, 2023
Model portfolios have become an essential component of virtually every advisor’s investment processes. Models can be constructed to meet investor profiles, including their level of risk tolerance, need for income, or tax considerations. Countless third parties, including many asset managers, offer models.
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