The Current State

The benchmarks show that risk-reward preferences get most of the attention, and tools abound (many of dubious quality).  Advisors often discuss other types of preferences in general (time preferences, social preferences) but rarely measure them with intention.

The big development opportunities for advisors are around improving the quantity and quality of methods they use to identify preferences (and updating results more frequently):

  • Find better risk tools; conventional questionnaires suffer from several shortcoming that are being addressed by more advanced methodologies rooted in decision science.
  • Do more to understand other meaningful client preferences beyond risk.
  • Measure and validate preferences in different ways—the data suggests that the more angles you can approach it from, the better your results.

Our Research

See the overall benchmark results for the Client Planning Preferences area:

StateOfClientUnderstanding_Mockup

Download Activity Area Benchmarks

 

Resources to Help You Succeed

 

Development Opportunities

Unsure if the tools your using for risk profiling meet the highest standards?

 

Resources

Learn more about the shortcomings of conventional profiling tools: Read the white paper.

 

Curious about the complete range of client preferences (beyond risk)?

 

Learn about incorporating “revealed preferences” tools into your profiling approach: Download case study of revealed preferences in action.


Get up to speed on the different types of planning preferences: