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Creating Portfolios for 'the Preserver' Client

Preservers emphasize financial security and preserving wealth rather than taking risk to grow wealth.

Michael M. Pompian, 04/17/2014

This month's article is the fourth 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 my last article series, there are four behavioral investor types (BITs): the Preserver, the Follower, the Independent, and the Accumulator. If you missed any of these articles, you can find them in my article archive on MorningstarAdvisor.com.

As noted in my previous columns, the learning process for each BIT will be a series of three articles:

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

--Part II will be a deep dive into the biases of that BIT.

--Part III will be how to create a portfolio for that BIT.

This article is Part III of the Preserver BIT.

Creating Behaviorally Modified Portfolios
For today's financial advisor, private banker, or generalist wealth management practitioner, creating viable and unique investment solutions in response to the array of financial situations and client personalities is the heart and soul of the job.

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

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