Financial Advisors Evaluating Malarkey

By Dr. David E. Marcinko MBA
Courtesy: www.CertifiedMedicalPlanner.org
Evaluating “Sham” Risk Aversion Determination Methodologies
BACK STORY: You visit a local financial advisor as a prospective client. S/he gives you a form to complete that purports to discern your investing risk tolerance?
FORM: It says: “Please indicate by ranking the items below from 1 to 4, with 1 being the most descriptive and 4 being the least descriptive”.
LINK: https://medicalexecutivepost.com/2009/12/28/risk-aversion-and-investment-alternatives/
EPIPHANY: After reviewing the form, you realize it is a superfluous one-size-fits-all risk reduction mechanism for the advisor. You identify the sheer malarkey of the exercise and leave in disgust. You ruminate to yourself – “there must be a better way,”
MORE: https://medicalexecutivepost.com/2017/10/24/on-investing-risk-tolerance/
And so, colleague Rick Kahler MSFS CFP® suggests alternative methods.
MORE: https://medicalexecutivepost.com/2017/10/18/on-retirement-planning-risks/
Your thoughts are appreciated.
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Filed under: Investing, Op-Editorials | Tagged: financial metrics, financial shenanigans | 1 Comment »
















