With the unprecedented market volatility and global uncertainty we’re all experiencing this year, we’ve put together this helpful list of resources to help advisors navigate these uncharted waters through the lens of the Risk Number.
How to Manage Client Expectations | White Paper
Starting the conversation by talking about risk is the simplest and most effective method to set client expectations in a way that will provide payback in terms of time, effort, and goodwill.
Setting Client Expectations | Case Studies
Read powerful stories of fearless investing and learn how you can inspire the same with your clients.
Volatility Notes from Our CIO
Fintech from the Frontlines
Advice From Afar
The way we work and where we work are rapidly changing, as are consumer expectations. To stay ahead of the curve, advisors need to both offer remote meetings as an option and embrace them as a critical part of their client experience.In our new ebook we'll explore:
- Three best practice tips to manage clients both near and far
- How remote meetings can instill efficiency in your practice and save you money
- How to eliminate manual, time consuming tactics by leveraging automated client tools
In the News
Riskalyze Chief Investment Officer Mike McDaniel is profiled in a piece called “What Advisors Can Do in Risky Markets.”
Riskalyze CEO Aaron Klein talks to reporter Ali Malito about what to say to panicked investors.
a Timely Story from our CEO
Words from Fellow Advisors
“I have received no inbound phone calls or emails about the recent spike in volatility from clients. I have proactively reached out to every client over the past several days and weeks. We focus on risk management, not portfolio management. Riskalyze has been an integral part of our risk management process in helping us identify a client’s tolerance and capacity for risk before it happens. Risk happens fast and we help our clients prepare for risk on the upside and downside.”
– Jon, Advisor in OH
“I am communicating with my clients. I sent an email out last week and again today. My job is to coach behavior and the past few days have been like the Super Bowl. I have to show up then the game gets tough. I have had some calls. Not overwhelming, but people want to hear from the advisor. Several clients have called and just hearing what they need to hear has reconfirmed their goals and investment plan.”
– Charlotte, Advisor in GA
“I only received one phone call from a client. He wanted to buy. I received one email from a client asking if it was a buying opportunity. Otherwise no questions or issues from clients to me.”
– Nina, Advisor in NC
“I met with a 62-year-old client yesterday. Her mostly equity portfolio is a Risk Number 78. In December I had suggested that we start could start moving some money into less volatile buckets, but given her situation we didn’t have to. She decided that it was doing well and she could handle declines. Fast forward to Monday. The market is down 7% at the open and she calls me wondering if we should get out. We met for lunch to talk about it. She has been a client for a long time, since before I adopted Riskalyze, so she had never done a Risk Number assessment. I had her complete the assessment and she came up as a 61. She asked if that meant that we should make a change. Not on its own, I told her. We have to factor in the rest of your assets. Then I added in her significant pensions and if brought her overall portfolio Risk Number down to a 51. I explained that even though she doesn’t own the principle for those income streams, in is an asset on her balance sheet that is non-correlated to market volatility. When we factor that in, her entire net worth hasn’t fluctuated as much as it feels like it has. That was very empowering to her and she left the meeting with a newfound confidence in her plan.”
– Nathan, Advisor in TN
“We actually have been prepping our clients with Riskalyze over the last year for volatility during this election year. Volatility presented itself sooner and for a different reason than previously projected but our clients have been educated on their risk profile. We have found that the volatility has still fallen in the Riskalyze range. If anything for our long term investors this is an opportunity to increase their dollar cost averaging plans. For our retired clients MOST are currently one stage lower on the risk metric than we would like long term but they have benefited from the additional protection this year (for example blend might be 50/50 than 60/40.) This will allow us to increase equity exposure at some point this year to get a % of equities at a discount. Time to make volatility work for you.”
– Reid, Advisor in TX
So far I’ve only had ONE call — okay, a few calls — but from ONE client. This market isn’t his first rodeo but it is his first with me. I always warn every new client, ‘you will never fully trust me until we go through a full market cycle together.’ Until then, I’m all words. After, we will be good for decades to come because you’ll then be able to trust with firsthand knowledge. Using Riskalyze to remind folks of what to expect in the good and the “bad” times (using Stress Tests) seems to really help. It was something you showed them Day 1 and have reminded them ever since with “Check-in’s” and again now as needed. It brings it all back into perspective. No drama. No hype. No paranoia. Factual. Good stuff.
– Shay, Advisor in FL