Commentary

Where Might Biases Creep Into Investment Advice?

Steve Wendel

If a friend of yours were to approach you and ask for financial advice, what information would you want in order to give a reasonable recommendation? Goals, current financial situation, investment and risk preferences, life expectancy, and so on?

What if you were an advisor (which a fair number of our readers here on Morningstar.com are)? What would you take into account if a prospective client asked you for advice? You'd probably include similar factors, right?