By now we all know that clients are not behaving in the familiar ways that we have grown accustomed to. Losing boatloads of money can sometimes have that effect on people.
No longer does the promise of a potential high return get Mrs. Jones and Mr. Smith salivating like it used to. Now more than ever, the saliva glands start to kick in when you mention things like: “safety,” “guaranteed” or “government-backed.” Unfortunately for the advisor, those saliva-triggering words often mean… tiny, tiny commissions. So what can an advisor who hopes to keep making payments on his Lamborghini do?
After months of extensive study and in-depth conversations with some of the financial world’s leading minds (who happen to be at my local tavern), I have come up with the definitive risk tolerance questionnaire. By learning the answers to these five simple questions, the savvy rep will now know exactly which investments are right for a particular client or prospect.
Which of the following activities would you most enjoy?
A. Bungee jumping off the Golden Gate Bridge
B. Reading Oprah’s book of the month
C. Swatting a hornet’s nest with a baseball bat
If you could be a dog, which breed would you be?
A. Pit Bull
B. Teacup Yorkie
C. Mexican Hairless
Who is your favorite TV newsperson?
A. Katie Couric
B. Walter Cronkite
C. Keith Olbermann