September 2020 Client Journal

September 2020 Client Journal

Goals-Based Financial Planning: How Simple Lists Can Overcome Cognitive Blind Spots

At Morningstar behavioral finance isn’t just a buzz word, it’s baked into our software to help empower investor success. Our dedicated behavioral science team leverages research and psychology to improve the user experience of our software and deliver better outcomes for its users.

In fact, Ryan Murphy, Samantha Lamas, and Ray Sin just won the 2020 Montgomery-Warschauer Award for their paper “Goals-Based Financial Planning: How Simple Lists Can Overcome Cognitive Blind Spots,” the highest honor awarded by the Journal of Financial Planning. The research found that asking people to self-report their investing goals is insufficient, with about 26 percent changing their top goal when prompted with a menu of other goals, and 73 percent changed one or more of their top three! These insights in the hands of advisors help prepare them to have more productive financial planning conversations with clients.

Steve Wendel, head of behavioral science for Morningstar, shares key highlights on Goals-Based Financial Planning: How Simple Lists Can Overcome Cognitive Blind Spots:

Read More Here

Meeting Client Expectations in Uncertain Times

It’s industry consensus that the landscape of financial advice is evolving—specifically, the role of the advisor in the eyes of the investor.

To drill into what these changes are, and how advisors should prepare in response to them, we interviewed members of Morningstar’s Advisory Board—a group of financial professionals who help set the future product direction for the financial advisory segment by representing the voice of our clients, their peers, and industry leaders. Largely, they agreed that investor expectations for financial professionals have increased in intensity.

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Try Our SuitabilityPro 30-day Complimentary Trial

PlanPlus Global’s SuitabilityPro™ platform integrates FinaMetrica’s risk tolerance profiling tools with PlanPlus’ enhanced financial planning and portfolio tracking capabilities to enable financial advisors and enterprises to deliver and monitor the highest standard of advice to clients through the world’s most rigorous, academically validated and market-proven suitability technology.

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FinaMetrica Risk Tolerance Score Mappings

Gain the tools you need to help guide your clients and facilitate the investment strategy selection process for Morningstar® Managed PortfoliosTM by matching clients’ risk tolerance score to a fund. In doing so, you’ll be able to make an equal comparison between risk tolerance and investment risk. The FinaMetrica three factor risk profiling methodology is a six-step process:

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Morningstar’s Annual Investment Conference: We’ve Gone Digital

Morningstar’s annual Investment Conference will take place as a digital event beginning Sept. 16–17, 2020. The event will be an immersive online experience that features all the key benefits you love about our flagship industry conference, bringing together industry leaders and investing experts to discuss the latest developments and share new perspectives on the market.

The Morningstar Investment Conference digital experience begins with our U.S. event, but it doesn’t end there: Throughout the fall you’ll get access to our conferences in South Africa, Australia, India, Spain, Italy, the U.K., and France—registrants can now watch all our digital content live or on demand until Dec. 1, all for $149.

We encourage you to register as financial planning and our behavioral science will be a reoccurring theme.

Learn More Here

Training Sessions & Webinars

SuitabilityPro™ Training Sessions are hosted every Tuesday and Thursday

  • Profiler: Getting Started! – Tuesday
  • ProPlanner: Getting Started! – Thursday

Check Times and Register Here

FinaMetrica Toolkit Webinar – Obtaining Your Client’s Inform Consent

  • Tuesday September 22nd, 10:00 AM in Eastern Time (US and Canada), 3:00 PM in United Kingdom

Register Here

PlanPlus Learning Circle

PlanPlus Learning Circle is a live training community designed to inform and educate financial professionals of recent developments of interest in financial planning and getting the most out of our financial software tools. These are mini learning sessions that run approximately 30 minutes bi-weekly. Click the link for additional information.

Register Here

Morningstar Manager Research Webinar

On Sept 10 at 11AM CDT, we’ll reveal what your firm can do to be successful in a more competitive field and review how the overall investor experience has changed over time. Join Amy Arnott, Portfolio Strategist, Morningstar Manager Research LLC and Matthew Birch, Customer Success Manager, Morningstar Manager Research Services in a live one-hour webinar as they’ll walk through our latest edition of the Mind the Gap study.

Register Here

I have been using FinaMetrica for over 17 years for onboarding new clients. They like the extensive value of the reports; but what we appreciate is the innovations in technology, the value of the client-facing materials and the development of the life-long client relationships as I get to really know their behavioral tendencies. FinaMetrica has assisted me in building a very successful practice and we highly recommend it for any advisor who wants to enhance the overall value of their client relationships.

Ron Wilkinson - Portland, Oregon, USA
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