Correcting the adviser-client disconnect over the definition of risk

When we say the word “risk” to clients, we’re most often thinking of technical things. Like volatility or standard deviation. But when clients hear the word “risk,” they’re thinking of the chances they’ll run out of money or fail to meet an important goal.That’s a big disconnect, and super frustrating for both you and your clients. Clients absolutely need to understand what we mean by risk because it can affect decisions and goals. So how do we fix the disconnect?First, we need to help clients understand what we’re really talking about when we say risk. Don’t be afraid to drop the technical…

Read the rest of the article on Investment News.