February 2020 Client Journal

February 2020 Client Journal

Do clients really understand what you are telling them when you talk about probability and risk? Maybe not, with many people having a low ‘risk literacy’ which inhibits their abilities to make accurate forecasts and good judgements. Meanwhile, we examine five investor behaviours that undermine financial plans — and advisors may be as guilty as their clients!

The Perils of Low-Risk Literacy

Financial advisors spend a lot of time explaining risk to the clients. But often those explanations are not understood, because clients don’t understand how to understand and respond to probabilistic risks.

Risk literacy is a serious issue for advisors, as the client’s ability to properly consent to a financial plan hinges on their ability to understand it.

Read more here.

Try Our SuitabilityPro 30-day Complimentary Trial

PlanPlus Global’s SuitabilityPro™ platform integrates FinaMetrica’s risk tolerance profiling tools with PlanPlus’ enhanced financial planning and portfolio tracking capabilities to enable financial advisors and enterprises to deliver and monitor the highest standard of advice to clients through the world’s most rigorous, academically validated and market-proven suitability technology.

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Watch Out for These Five Investor Behaviours

Behavioural economics has revealed many ways that investors — and investment advisors — can make mistakes or be fooled by things that are not what they seem. These are just five of a long lists of biases and errors that can undermine our best intent.

These behaviours are summarised from the work of Nobel Prize winning psychologist Daniel Kahneman, who is one of the fathers of behavioural economics.

Read more here

PlanPlus Global’s FinaMetrica Risk Profiling Toolkit Awarded Best Risk Profiling Service

Each year the Professional Adviser awards in the UK recognises the best advisors, planners, platforms, investment solutions and support services in the financial services industry.

Firms submit a 500-word award entry that is scrutinised by independent judging panels composed of an appropriate mix of financial advisors, business consultants, fund researchers, platform specialists and other financial services sector experts. All panels are be chaired by Professional Adviser Editor Tom Ellis.

We are delighted to reveal that PlanPlus Global’s FinaMetrica Risk Profiling Toolkit beat off strong competition to be crowned Professional Adviser’s Best risk-profiling service for advisors.

PlanPlus Global Events

PlanPlus Global activities for this month – conferences and events.

Malaysia: 30 January to 31 March – MFPYA 2020

Canada: 30 January to 31 March – Canada Financial Planning Awards 2020

USA: 20 to 22 February – Academic Research Colloquium

View Calendar

January Training Sessions

SuitabilityPro Training Sessions are hosted every Tuesday and Thursday from 1pm

  • Profiler: Getting Started! – Tuesday @ 1PM EST
  • ProPlanner: Getting Started! – Thursday @ 1PM EST

Register Here

I have been using FinaMetrica for over 17 years for onboarding new clients. They like the extensive value of the reports; but what we appreciate is the innovations in technology, the value of the client-facing materials and the development of the life-long client relationships as I get to really know their behavioral tendencies. FinaMetrica has assisted me in building a very successful practice and we highly recommend it for any advisor who wants to enhance the overall value of their client relationships.

Ron Wilkinson - Portland, Oregon, USA
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