• / Free eNewsletters & Magazine
  • / My Account
Home>Practice Management>Practice Builder>How to Deal with the Independent Client

Related Content

  1. Videos
  2. Articles
  1. Retirement Prepping for the Fiscal Cliff

    Financial columnist Gail MarksJarvis lays out planning strategies for taxes , Social Security, Medicare, and more, that retirees and pre- retirees should keep in mind amid U.S. budget uncertainty.

  2. Portability Provision Simplifies Couples' Estate Planning

    Estate - planning expert Deborah Jacobs details how spouses can take advantage of the 'portability' tax provision, which allows them to maximize both partners' estate tax exclusion, and how this strategy differs from trusts.

  3. Don't Play Games With Your Withdrawals

    Overspending and impatient selling are two moves that can prematurely drain retirees' portfolio income, warns financial columnist Gail MarksJarvis, who offers strategies to avoid these pitfalls.

  4. Session 2: Midyear Portfolio Checkup and Risk Factor Review

    Director of personal finance Christine Benz will help you check your true exposures and stress-test your holdings in session 2 of Morningstar's 2012 Midyear Financial Checkup.

How to Deal with the Independent Client

Independent-minded clients like to get involved in the investment process but are prone to certain cognitive biases that can torpedo their ability to reach their goals.

Michael M. Pompian, 08/21/2014

This month's article is the eighth in a series called "Deep Dives into Behavioral Investor Types." This series is intended to help advisors create better relationships with their clients by deeply understanding the type of person they are dealing with from a financial perspective and being able to adjust their advisory approach to each type of client.

As we learned in the last series, there are four behavioral investor types, or BITs: the Preserver, the Follower, the Independent, and the Accumulator. As noted in previous articles, the learning process for each BIT will be a series of three articles:

1. Part I will be a diagnosis of each BIT and discussion of its general characteristics.

2. Part II will be a deep dive into the biases of each BIT.

3. Part III will be how to create a portfolio for each BIT.

This article is Part I of the Independent BIT.

BIT Orientation Quiz
I am often asked how to diagnose what category of investor a client falls into. The following is a helpful way to initially identify an investor type.

I have highlighted in bold below the responses that identify the Independent Behavioral Investor Type.

The author is a freelance contributor to MorningstarAdvisor.com. The views expressed in this article may or may not reflect the views of Morningstar.

blog comments powered by Disqus
Upcoming Events
Conferences
Webinars

©2014 Morningstar Advisor. All right reserved.