When weighing the risks and benefits, many of your clients would rather have portfolio protection with growth potential than portfolio performance that is susceptible to market volatility.
This preference likely aligns with how many financial advisors approach clients’ investment and retirement planning strategies by prioritizing risk management and wealth preservation.
On its surface, this alignment suggests harmony; clients generally want protection and advisors are willing to provide strategies accordingly. For investors who are already in higher wealth tiers and simply want to live off existing assets, this approach may be appropriate.
However, those investors with fewer investable assets might lack sufficient savings to fund retirement in spite of being cautious about preserving their accumulated wealth and minimizing risk.Read More