Description
A financial advisor's most important delivery is advice. While our industry has made strides in packaging "risk tolerance portfolios" and "probability of success plans" into sleek software, we haven't seen the same level of innovation applied to advice methodology itself.
So, how can we deliver more robust advice to clients? As it turns out, risk questionnaires aren’t particularly useful for building personalized portfolios, and Monte Carlo simulations aren't a substitute for real risk management. This session will introduce a liability-driven planning framework designed to create robust total wealth portfolios that deliver a truly personalized experience.
By connecting planning to portfolio and wealth management solutions, this approach helps define every investment serves a clear purpose. It rethinks an investment portfolio as a “completion portfolio” that complements a client’s broader financial structure, including homes, liabilities, private assets, businesses, human capital, estate inflows, social security, pensions, and more.
Learning Objectives
1. Differentiate personalized solutions: Compare “liability-matching” methods with “risk tolerance portfolios” and “probability of success plans” to tailor client strategies effectively.
2. Manage total wealth portfolios: Integrate homes, mortgages, alternatives, private assets, social security, human capital, and other resources into holistic portfolios.
3. Address stressful events: Recognize and apply risk management methods to mitigate the impact of stressful life events on clients’ financial well-being.
4. Personalize lifecycle solutions: Adapt hedges, reserves, insurance, diversification, and life adjustments to meet clients’ evolving needs over their lifetimes.
5. Unify financial planning: Combine personalized asset allocation, risk management, and wealth management into cohesive client strategies.
6. Decide under uncertainty: Apply a decision-making framework and financial offsets to address client-specific risks in uncertain conditions.
7. Deliver interactive advice: Implement rigorous, iterative, and engaging client experiences for effective financial planning.