Sharon Appelman: "We go back to the basics of risk tolerance"

SEP 15, 2013
Q: What did you learn from the financial crisis that informs how you advise clients today? A: This year, there's an uptick in clients talking about ... increasing their equity holdings. We go back to the basics of risk tolerance. We don't just talk about returns; we talk about risk-adjusted returns. We look at the downside risk of the portfolio and the upside potential. Most of the time, a change isn't warranted. A lot of times, the conversation is reminding them how the portfolio is positioned and why it's that way. Nine times out of 10, that is all they need to hear. If you have done a good job structuring the portfolios, it really is important to stay the course. I don't mean buy-and-hold forever, but when you follow your discipline, you can overcome emotions. That's where advisers really add a lot of value. Everything I just told you is as relevant today as it was in 2008. What's different is that in 2008, the primary concern was losses, where now the concern is missing out on gains. Sharon Appelman Director of financial planning and wealth management Francis Financial Inc. New York — as told to Mark Schoeff Jr.

Latest News

Former Western Asset Management star bond manager fined $3 million
Former Western Asset Management star bond manager fined $3 million

Kenneth Leech pleaded guilty in June to one obstruction charge, and could face six to 12 months ⁠in ​prison.

Morningstar rolls out agentic AI platform built on its research
Morningstar rolls out agentic AI platform built on its research

Launch of Direct AI follows a model portfolio tie-up with Envestnet as advisors juggle AI adoption and private-market due diligence.

Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets
Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets

Meanwhile, Cetera's streak of Commonwealth recruitment continues in Washington, and an LPL advisor hops over to Raymond James in Maine.

AlphaCore adds $400M Blue Rock in Mid-Atlantic push
AlphaCore adds $400M Blue Rock in Mid-Atlantic push

The Sussex County wealth firm, built around business-owner clients, extends the California-based aggregator's footprint in the East Coast.

Bluespring Wealth builds $1B team with Family Wealth Counseling deal
Bluespring Wealth builds $1B team with Family Wealth Counseling deal

The Kestra-owned RIA acquirer merges the planning firm into KDI Wealth Management, creating a majority woman-led advisor team

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor