We define volatility composure as a combination of past experiences and behavioral patterns that describe how an investor typically reacts to changes in the market value of his or her investments as well as overall changes in the value of the stock market. How will the individual actually behave–as opposed to how they think they will behave–when the stock market goes haywire (as it is doing now for the first time in quite some time)? How[…]
We’re piloting new assessments in the upcoming weeks that measure wealth building, risk tolerance, and resiliency. If you’re interested in participating, please sign up here. If you are a professional advisor and would like to have your clients participate, please contact us.
A recent study from Wells Fargo and Gallup found that approximately 21% of 401(k) participants take out loans or early withdrawals from these plans. Many employees are not quite familiar with the tax consequences that go along with such behaviors. The basics of good money management, while not universally taught, can be identified and learned. Financial literacy is a necessary first step in ensuring individuals make sound financial decisions. However, it is only one piece[…]
How does your organization segment its clients? Most often they are segmented by amount of investable assets, net worth levels, and perhaps age, income, and/or risk tolerance levels. What’s missing? A guide to their competencies for building wealth. As long as I can remember, my father has given big, gold-wrapped boxes of chocolates for thank you/end of year presents to his business associates. When I was growing up, as a treat, he would often buy a[…]
A data point is a measurement or set of measurements of a single member of a particular population. For the financial services industry, client data typically include age, income, net worth, investable assets, risk tolerance, attitudes, and perhaps big data (with or without theory). This information is traditionally used to describe wealth groups (e.g., mass affluent, ultra high net worth) and determine relevant products and services. What’s missing? The scientific measurement of relevant wealth-building behaviors and life experiences that[…]