Is Diversification the Key to Success?

posted in Risk Tolerance Apr 30, 2019


Taking a look at historical market performance, it’s easy to see that asset classes fall in and out of favor with great frequency.

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Portfolio Protection or Performance? Overcoming 3 Risk Aversion Behaviors

posted in Risk Tolerance Feb 19, 2019


Nearly 75% of investors would rather have portfolio protection than portfolio performance.1 This preference nearly perfectly squares with how financial advisors report they prioritize clients’ investment and retirement planning strategies, as 74% put wealth preservation/risk management at the top of the list.2

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Managing Risk through Portfolio Diversification and Guarantees

posted in Risk Tolerance Jul 24, 2018


Your clients look to you to help them develop the right investment strategy for achieving their goals. They are equally aware that investment decisions can carry a lot of uncertainty given market volatility and complexity. Looking at a comparative history of individual asset class performance, it’s clear that consistent top performance can be elusive. Asset classes on top one year may bottom out the next, and vice versa. It’s a reality that requires active risk management to structure a solid portfolio that aligns with retirement goals.

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How to Alleviate Client Stress Surrounding Retirement Planning

posted in Risk Tolerance, Client Relationships Jun 5, 2018


Retirement looks different for everyone. Some dream of world travel or a vacation home, while others want the financial security to comfortably cover everyday living expenses and a few luxuries. Regardless of the retirement goal, accomplishing it requires diligent saving and smart financial planning — and that has many American workers on edge.

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How Risk Aversion Impacts Wealth Management

posted in Risk Tolerance, Cautious Investors, Annuity May 22, 2018


The quarterly Retirement Readiness Index (RRI), which accompanied the latest Retirement Advisor Confidence Index (RACI) from Financial Planning, reflects that investors were significantly more risk averse in the first quarter of 2018 than in the 12 months prior:

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Can Affluent Investors Overcome Doubts About Market Performance?

posted in Risk Tolerance, Cautious Investors May 1, 2018


2017 saw a decided split among the affluent when it came to faith in the market. Spectrum Group reported that those with $1 million or more in investable assets no longer held onto major market skepticism, although they remained mildly bearish. Investors with $500,000 to $1 million in assets, however, lost considerable confidence. So much so, in fact, that 42% opted out of investing altogether by June of 2017 — a steep climb from the 33.6% in February1.

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No More Money on the Sidelines: Helping Clients Rethink How They Save

posted in Risk Tolerance, Cautious Investors Feb 20, 2018


It’s said that a bird in the hand is worth two in the bush. Given the 6.6% spike in bank deposits last year — translating to nearly $11 trillion1 — it appears that Americans are heeding that age-old advice.

While this conservatism may partially be fueled by lingering skepticism about the resilience of the U.S. economy, that’s not to suggest that saving money using a bank is a bad practice. Roughly 60% of recent Gallup poll respondents who indicated they preferred saving to spending2 likely use their accounts in this fashion. The savings habit is a good one, but they’re simply not asking their money to work for them and, more specifically, for their retirement.

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Overcoming Market Skepticism to Reach and Advise Millennials

posted in Risk Tolerance, Client Relationships Jan 30, 2018


Millennials are poised to be roughly 50% of the U.S. workforce by 2020 and 75% of the global workforce by 20301. As the first generation to grow up with the Internet, cell phones and cable TV, the 77 million-plus individuals in this group are generally defined as early adopters of technology2, forward thinkers in corporate and entrepreneurial pursuits and they fully expect to be better off financially than their parents3.

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Redefining Risk for the 80% of Investors Who Want Portfolio Protection

posted in Risk Tolerance, Cautious Investors Jan 23, 2018


Risk and reward. It’s the eternal and necessary tension in the stock market, and the presumed goal is the reward side of the equation — the “win” in spite of the risk. But, is it really the goal? Nearly 80% of respondents to the Cerulli Associates’ U.S. Retail Investor Products and Platforms 2017: Retooling for the Modern Investor survey would disagree. This weighty majority “prefers the safer route of protecting portfolios from major losses, even if that means periods of underperforming in the market1.”

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3 Questions About Fear to Help Determine a Client’s Risk Tolerance

posted in Risk Tolerance, Cautious Investors Oct 10, 2017


Perhaps the scenario sounds familiar: You’re sitting across the table from a client who finally accepted your repeated invitations to meet and go over his portfolio, which has been in maintenance mode for the last decade or so. He’s been relatively unengaged, and this is the first real opportunity you have to review his investment goals and further develop that all-important, trusting advisor-client relationship.

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