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The following posts are related to determining client suitability. Scroll down to see more articles.

Separate? Separately managed? Or both?

Some advisors have an ingrained resistance to using separately managed accounts—but it doesn’t have to be an all-or-nothing proposition. There are perhaps as many styles of investment management as there are people in the financial-services...

Should clients really want to beat the market?

What does it take to “beat the market”? Is it more important to deliver value to clients in terms of risk-adjusted returns? Proponents of active management have been somewhat on the defensive over the past several years. With relatively strong stock...

Risky business

How can advisors build a more meaningful investor behavioral profile? The long-lasting effects of the Great Recession It is hardly news that many investors remain permanently scarred by the credit crisis of 2007 to 2009. Many research studies since have...

Buy and fold

The only investment approach investors should consider is one they will actually follow. Millions of Americans follow what has become traditional advice to “buy and hold.” This approach might be best summarized by John Bogle, founder of The Vanguard...

Why smart clients do dumb things

Highly intelligent people are often susceptible to making poor investing decisions—behavioral research offers some clues why History books are full of examples of faulty thinking by some of the most intelligent people of their time. News articles remind...

Finding your inner advisor

How ‘esse quam videri’ informs my interactions with clients Esse quam vider “Esse quam videri,” the motto of my high school, translates as “to be rather than to seem.” This motto, and Robert Fulghum’s book, “All I Really Need to Know I Learned in...

Why outsource investment management?

Trust Advisor’s 2015 guide to America’s best TAMPs offers compelling reasons. Proactive Advisor Magazine recently took a look through the eyes of a successful Washington-based financial advisor at a key question for all independent advisors: “Separate?...

Helping clients climb down the mountain

Behavioral research has documented many of the obstacles that trip up self-directed investors—the first step in gaining knowledge is often one of self-awareness. As financial advisors, we wear many hats: detective, analyst, strategist, architect,...

Investors looking for answers

Investors are demanding increased risk management for their investments, representing an increasingly growing market for actively managed strategies. Surveys  of investor attitudes typically fail in one major way: They start with an agenda that often...

Are your clients carousel of coaster investors?

It is good for clients to periodically retake the suitability questionnaire. Their appetite for risk may have changed, while their investment portfolio has not. As we approach Labor Day and the end of school vacations, most of the kids I know are...

Active management reflects market reality

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” – William Arthur Ward To be a buy-and-hold investor, one must be an optimist, trusting in the market’s upward direction and...

The millennial obsession

With the greatest wealth transfer of all time on the way, the profound interest in millennials’ financial attitudes is well-justified. You cannot pick up a business publication, tune into a financial news program, or glance at any news website without...

Profiling ultra-high-net-worth clients

Active investment management may help address many of the financial concerns of ultra-high-net-worth clients, including their desire to leave a legacy to heirs and charitable causes. While ultra-high-net-worth (UHNW) clients may not have to worry about...

Active management for the mass affluent

Bringing dynamic, risk-managed strategies to all clients. There is a misconception among some financial advisors that active risk management should be reserved for only the wealthiest of clients. Not so. A growing number of financial advisors say they...