The Odd, Mixed Messages From FINRA on Risk Tolerance and Suitability
FINRA’s new, and unusual, definition of risk tolerance and the inconsistency between that definition and the views expressed on the SRO’s website are not helpful to advisors and investors.
Body Surfing and Investing: A Way for Advisors to Understand Clients’ Risk Behavior
Risk behavior, whether relating to a physical activity like surfing or investing, is not solely determined by risk tolerance.
Do Your Clients Invest for the Thrill of It?
According to FinaMetrica’s 500,000-investor sampling, nearly a quarter of your clients do. What that means for advisors.
How Ugly Can It Get? Helping Clients Prepare for the Future
Looking at what would have happened with a portfolio in the past adds concreteness to what might happen to your clients in the future.
Preparing Clients for the Ugly Times: Risk and Return
To best educate clients, show them how their portfolios would have worked in markets past. The less they look, the better the performance.
Lessons for U.S. Advisors—and Regulators—on Risk, Suitability From Overseas
Paying attention to consumer needs is no longer whistling in the wind. It’s a global tornado.
Mars and Venus: Helping Client Couples Resolve Conflicting Risk Tolerances
When risk tolerance differs among a client couple, good testing and an insightful advisor can work wonders.
Is Risk Bad? The Advisor’s Job in Finding the Balance Point for Clients
Yes, protect clients from taking too much risk, but also ensure they can achieve their goals by taking appropriate risk.
Chicken or Egg? Risk Tolerance as a Driver of Financial Success
Risk tolerance correlates positively with income and wealth, but does it indicate causation?