Video
A Good Financial Plan Doesn’t Come From a Questionnaire
Imagine that you walk into an office, sit across the desk from a financial professional, and hear the question, “What is your risk tolerance on a scale of 1-10?”
Think about how the portfolio that results from that might be different from a conversation that sounds more like, “What is this money for?” “How did you feel during the last market drawdown?” “What did you do?” “How will next time be different?”
I’m Hannah Whatley, an advisor with Rather and Kittrell.
Having a conversation has a much greater impact than answering a questionnaire.
Framing bias is when you answer a question differently based on the way that it was asked. To prevent this bias from impacting your finances, ask yourself, “Do my investments align with what is most important to me?” rather than how I answer a risk tolerance questionnaire.
If your answer isn’t a resounding yes, visit us at rkcapital.com.
