BEST PRACTICE - Convincing prospects: How to discuss risk and goals

Abstract

As advisers are adopting wealth management technology, they seem to be focused on the risk tolerance aspect of risk system implementation. But building a portfolio by subordinating everything else to the risk tolerance is detrimental. It is critical for the adviser to discuss goals and risk tolerance together and identify the right portfolio that will match these two elements. This research, along with supporting examples, illustrates how to bring together client’s investment goals and risk tolerance.

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