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Asking the Right Questions

The new FTJ FundChoice Risk Tolerance Questionnaire has been designed to provide the initial opportunity to engage prospective clients in a unique conversation that would set the advisor apart from other advisors and new “robo” alternatives.

When we simply request the prospect to think about how markets can move up, sideways and down, then envision the asset management that they expect during those cycles, we create discussion points around having strategies in place rather than just a blend of asset classes. This powerful conversation begins the process of displaying added value that is evident and referable.

If the prospect has a current portfolio that needs to be “analyzed” the answers to these three questions and the resulting Three Mandate suggested allocation set the stage for a comparison based on client future expectations for market cycle diversification, not purely past performance of the current assets. This analysis can be particularly helpful now when most beta related holdings, especially the S&P, have been very efficient and are hard to make a case for changing.

In addition, advisors who import existing holdings into the FTJ FundChoice proposal system are provided with a risk score comparison using FTJ FundChoice’s proprietary scoring system and mandate analysis comparing the mandates suggested by the client’s previous responses to our risk tolerance questionnaire, and their current holdings categorized as Strategic, Tactical or Diversifier. Since the typical client account is overweight Strategic (beta) holdings, this analysis can be a key differentiator for our advisors. This process especially highlights the lack of strategy diversification most “robo advisors” offer.

With MMS’ unique client risk tolerance questionnaire and our customized Three Mandate analysis and proposal system, we believe our advisors have the opportunity to start a great conversation and provide a clear alternative to what most prospects are being offered today.