Why I Bristle at One Risk Score for All Goals

Over the next few months, you are going to hear me talk a lot about risk and goals-based wealth management. In fact, in just over two weeks, J. Womack and I will be debuting our newest whitepaper, “Coach Through Biases: The Advisor’s Role in Behavioral Finance. “

In addition to doing our own research with advisors and their clients, we look back at an early SEI whitepaper on goals-based investing.  

Maybe the original paper shaped my thinking about risk or just solidified what I was already thinking. But I have always bristled when I hear about a “one size fits all” risk score developed using an online tool or risk tolerance questionnaire. It just never made sense to me that I could have the same risk tolerance for multiple goals. That had me digging through my archives.

And so this week, I wanted to throw it back to 2015, to a post on why one risk score should not rule them all. Take a look and let me know what you think – and look for an invite to the webinar launching our newest paper.

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John Anderson

John Anderson

John Anderson is the creator and lead author of Practically Speaking blog and Managing Director of Practice Management Solutions for the SEI Advisor Network.

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