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Optimizing a Portfolio for 'Accumulator' Clients

It can make sense to take a bit of risk off the table for this type of client.

Michael M. Pompian, 01/22/2015

This month's article is the 13th and final 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 adjusting their advisory approach to each type of client.

As we learned in the last 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 MorningstarAdvisor.com archive.

We will discuss each BIT in a series of three articles:

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

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

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

This article is Part III of the Accumulator BIT. (Click here to see Part I and Part II.)

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 personalities that clients present 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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