hard · Certified Financial Planner Psychology
The Jensen couple is engaged in a joint financial planning process but is experiencing significant conflict regarding their portfolio allocation. Mr. Jensen prefers a high-equity growth strategy, while Mrs. Jensen expresses anxiety over any potential loss of principal.
Which structural approach is most appropriate for a fiduciary to recommend to address this behavioral discrepancy?
- Calculate the weighted average of their two risk tolerance scores and implement the resulting midpoint allocation.
- Segregate the portfolio into specific, purpose-based sleeves with separate owners and distinct risk profiles.
- Weight the allocation toward Mrs. Jensen's preferences to ensure the portfolio remains within the family's overall risk capacity.
- Recommend the purchase of a variable annuity with a guaranteed minimum income benefit to provide growth potential with a floor.
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