Money markets are humongous. There are trillions of dollars floating around every second globally, and there’s no harm if you wish to direct some of that to your pockets. Sounds lucrative, right? However, there’s a possibility that you may even lose your money to someone...
Money markets are humongous. There are trillions of dollars floating around every second globally, and there’s no harm if you wish to direct some of that to your pockets. Sounds lucrative, right? However, there’s a possibility that you may even lose your money to someone...
Financial advisory is one business that’s primarily reliant on the number of clients you have. While it’s true that people are inclined to listen to you when you wish to make them money, it’s not always that they’ll hire your services.When money is involved, everyone...
Financial advisory services can be a tricky venture to jump into. You have to be best prepared to cater to a wide variety of clients. Also, you need to be technically sound while understanding the market dynamics to provide profitable advice to your clients.New financial...
Rome wasn’t built in a day. You may have encountered this statement before or not. The point here is to understand the financial interpretation of the statement. You can’t make great investment decisions in a jiffy. What the statement means is that your investments need...
All the investment opportunities come with two constants- Risk and reward. A financial advisor’s task is to communicate both to their clients and come up with lucrative investment opportunities for them.As a financial advisor, you know that not all clients are the same. Even if...
Most risk tolerance questionnaires get a bad rap. For many advisers, they are simply a compliance tool to appease the regulator. They add some value, but if it weren’t mandated, they probably wouldn’t use them. This negative mindset is rightly deserved due to the abusive...
In recent years there has been a plethora of risk tolerance tools releasing features to help advisors acquire more clients. The theory goes by assessing a client's risk tolerance we can know what investments best suit their psychology, a portfolio they will "stick with". However, this...
We can learn a lot from our neighbours, including how to manage a client's suitability for a certain investments. The U.S., U.K, Canada, Australia and a number of other countries have produced guidelines around client suitability including the use of risk tolerance questionnaires. Below is an overview...
Assessing your clients' risk tolerance and overall risk profile (which includes risk capacity, risk needs and behavioral biases) is essential to building suitable portfolios, running an efficient practice and meeting compliance requirements. But what is the ideal way to do it? Tip: It's not just about...