The Risk of Being Risk Averse – and What to Do About it (Journal Article)

Clients who have an aversion to risk represent a challenge for financial advisors. This column discusses the risks associated with these clients’ fears and suggests the challenges and opportunities for advisors to work with such individuals. Using behavioral finance principles, it addresses who is a risk averse client, what are the issues related to this aversion, and tangible steps an advisor can take to help.

Author: Steve Parrish, JD, RICP, ChFC, CLU, RHU, AEP, is the codirector for the New York Life Center for Retirement Income Planning at The American College of Financial Services. He is also adjunct professor of advanced planning at The American College and an adjunct professor of estate planning at Drake University Law School.