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.
Read more here
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
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