We have found that 5-10% of couples have at least one partner with incoherent risk preferences—and that represents a hidden danger, both for the clients and for the advisor.
Financial personality tests are widely used to engage prospective clients through self-discovery - but they are more art than science. There is a better, more scientific way forward.
All decisions in life, large and small, financial and non-financial, are governed by three key tradeoffs: Risk vs. Return, Today vs. Tomorrow, and Self vs. Others.
Today’s portfolio personalization (via direct indexing) can’t be realized with conventional client diagnostics. Look to shoe personalization for clues on how diagnostics need to evolve.
The frenzy of direct indexing acquisitions will make tax-loss harvesting table stakes. Direct Indexing's upside is personalization, but precise client diagnostics are needed.
First-time ESG investors are likely to feel “choice overload”, which means fewer will choose to invest and those who do will feel more regret.
As large wealth management firms head into the middle innings of advice transformation, they’ll face a new set of personalization risks.
Here's our take on building a personalized (and differentiated!) sustainable investing experience for clients. It's a spot where, in our view, wealth management firms are falling short.
Protect Vulnerable Clients From Bad Decisions And Your Firm From Regulatory Risk.