Risk remains one of the most challenging topics for real financial advisers. Because when we say "risk," our definition rarely matches what our clients think. But it's so important that we learn to talk about risk effectively.
We have a lot of work to do on this issue, but today, I want to focus on
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Putting goals in short-, medium- and long-term buckets creates a touchstone advisers can refer to when people want to do something that conflicts with them.
It starts with the simple things, but not easy things. Asking questions. Listening more than we talk. Acting as a news filter to separate the valuable from the useless.
We need to make it clear that there's no such thing as zero risk.
We're artists whose finished work doesn't end up on a canvas but plays out in the real lives of our clients.
We must diagnose the needs of our clients before we ever think about giving a prescription.
