To mitigate the negative impact of worry on investment decisions, financial planners should match a client’s risk tolerance with a pre-determined asset allocation strategy. If a client loses sleep due to anxiety about common stocks, planners should advise them to own more conservative securities to hold a less risky portfolio.

Authors

• Person: Not available Organization: Financial Planning Association
  Understanding Behavioral Aspects of Financial Planning and Investing

Sources

• Understanding Behavioral Aspects of Financial Planning and Investing www.financialplanningassociation.org Financial Planning Association via serper

Referenced by nodes (3)

• worry concept
• risk tolerance concept
• financial planner concept