Rodrigo Gordillo and Mike Philbrick, co-founders of Resolve Asset Management contend that it’s time to get comfortable being uncomfortable. We’re late in the cycle, bond yields are at lows, equity valuations are very high, and that means long term investment returns from the conventional 60/40 equity bond portfolio have a high probability of being lower than expected, and that near-term downside risk is proportionately higher.
When your clients think about risk they most often recall or imagine losing money or enduring volatile markets. You, as an advisor, however, have to widen your perspective on risk to include your clients’ feelings about their investments, and the potential decisions they may make as a result.
Your clients’ greatest risk is the probability they won’t meet their financial goals ā it rests upon you, their advisor, to minimize this risk. How do you do that? What actions, what decisions, what conversations are required in order for you, as an advisor, to minimize the possibility that your clients won’t achieve their objectives?
Here, in this podcast episode, we take a deep dive into this dilemma, which may change some of your perspectives about how to tackle the key risk facing your clients and by proxy you, and to shed some light on how to overcome and succeed.
