The discussion must be personal because every client is unique
Questionnaires consist of too few and poorly worded questions
The goal is help firms and advisors gain a better understanding of their clients
Here are five considerations that can help you navigate the very complex issue of client risk tolerance
Assessing a client’s risk tolerance goes beyond using a questionnaire or risk-assessment system. An ongoing process is needed
Remind clients that downmarkets are a natural part of the investing process
Risk tolerance doesn't change much
The new tool is a collaboration with Australian firm FinaMetrica
Discussion paper examines questionnaires to help assess clients’ risk tolerance and capacity
Clients may not realize they are risk-averse until markets become volatile