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Most of them do not know.  They rely on professionals.

By Maria on October 25, 2018

There is a huge lack of planning among most canadians, as they are too busy in their day to day struggle and don’t have enough time to even think about it until the deadline approaches and make the choices based on whatever is easily available and done. At the time they think, will change it over afterwards and deal with it later and lose the opportunity and time.

By Nikunj Shashtri on October 17, 2018

When client understands their need of money in the short term vs the long term, they can allocate the level of risk more appropriately.

By Stephen Cheung on October 17, 2018

I take great care in explaining risk to my clients and making sure they understand what impact it has on their portfolio. This is why I only get calls asking to put money in when the market crashes as opposed to wanting to take it out.
I have had most of my clients for several years and they are comfortable asking me questions as I explain that a question is like a compliment. This allows them to feel free to ask and give me better insight as to what they are truly thinking.
David Gorveatte

By David Gorveatte on October 17, 2018

Risk comes in many forms.

By Ernie on October 12, 2018

My clients don’t handle the risk/reward ratio well at all.  They appreciate the technical points of it until it actually impacts their investment portfolio or capital contributions to other businesses.  Then they experience great anxiety and they want to renege on their long-term strategies, rather than riding the wave and waiting things out, as we discuss beforehand.  Being a financial advisor means using a lot of psychology and soothing people’s concerns.  These soft skills matter more sometimes than financial aptitude.

By Marcia C Husson on October 08, 2018

The industry does a poor job of defining risk. Risk should be defined as the probability of an out come different then what one expects. In accessing risk (In my opinion) and the way I discuss risk with my clients is that risk has three distinct components to it. The first is the individuals tolerance for risk, the second is the individuals capacity for risk and the third is the individuals aptitude for risk. All there are very different. Most advisers only talk about risk tolerance.

By Christopher Hatherly on October 03, 2018

It takes baby steps to make them stop and educate about the importance of risk tolerance and the idea of investing in the right stuff.

By Mary Maddie on October 03, 2018

Most people make year-end decisions in a rush without much forethought or planning.  Their choices may not be based on their risk tolerance or anything other than “I need to make this investment now” thinking.

By Robert Litschel on October 02, 2018