Why the investment industry’s process of creating financial plans is backward

. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.

A diligently composed comprehensive financial plan involves a deep dive into both the quantitative realities and goals, but also the larger qualitative aspects of who the client is. Once completed, the process leaves the advisor with a deep understanding of the client’s financial circumstances as well as who they are as people.

Comprehensive financial plans with stress tests like market corrections and Monte Carlo simulations are arguably the most comprehensive way of determining a client’s capacity for risk. The present value of future earnings and their volatility should be factored into any portfolio recommendation and, again, speak to a client’s risk capacity.

Switzerland Neuesten Nachrichten, Switzerland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Opinion | The Faceoff: Why buying Shaw’s wireless business would make perfect sense for QuebecorThe Faceoff: Why buying Shaw’s wireless business would make perfect sense for Quebecor Liberal newspapers are supposed to argue for antitrust laws etc.
Herkunft: TorontoStar - 🏆 60. / 55 Weiterlesen »

The human flaws that fuelled this market crash – and why they keep failing us when investingWhat we’re seeing now follows a pattern that was also present in each of the ugliest market collapses of the past three decades The petrodollar is dying and the US is beyond broke. We pivot now, or crash with them.
Herkunft: globeandmail - 🏆 5. / 92 Weiterlesen »