Toronto-based TD Wealth Private Wealth Management (TD Wealth PWM) has launched a new tool modelled on behavioural finance aimed at helping the firm’s financial advisors illuminate “financial blind spots” high net-worth clients may have when making investment decisions.
With the TD Discovery Tool, advisors can produce, upon a client’s request, a wealth personality report, which highlights traits that may influence — and hinder — that person’s ability to make rational choices.
“With a deeper focus on discovery, our advisors can better identify and understand a client’s financial personality,” says Dave Kelly, senior vice president with TD Wealth PWM, in a statement. “The better we understand a client’s decision-making rationale, the better advice we can give to help them meet their financial goals.”
If the tool identifies that a client has a strong aversion to losses, for example, the advisor might initiate a conversation about risk tolerance or undertake a review of his or her insurance or estate plan, according to TD Wealth PWM.
Meanwhile, in situations in which an investor appears to be overconfident, or is prone to trade much more than the average person, the advisor might focus conversations around keeping big-picture goals in sight or draw attention to “potentially negative impacts,” depending on the situation.
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