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March 05, 2008

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CiaranFromChance

Hey nice blog guys! Art DInkin turned me on to it. I agree with your assessment of these risk profile questionnaires. You almost need to trick people, so they don't game the system.

I chuckled when you wrote about investors in the 90's saying their risk tolerance was, 'whatever is highest.' I remember those days quite well.

I've lost clients over the years, especially during times of extreme market volatility and one of the things I've come to realize was the classical risk profiles many of these clients filled out hadn't correctly diagnosed their attitudes towards risk. And as I got to know many of them, through the years, I was able to really get a better sense what type of investors they really were.

So to wrap it... I agree with what your saying here.

And I think firms have to do a better job of creating risk profile questionnaires that are less straightforward and gameable. Maybe take a page out of eHarmony's book (never been to the site, just guessing:)

CiaranFromChance

btw, Stumbled it.

CiaranFromChance

Hello, is there anyone home?

Eric Toya - LWM Blog

Ciaran,
Hi, and thank you for your comments and for stumbling this post. Sorry for my lack of response. I didn't have an opportunity to get online over the weekend.

I am very impressed with your blog. It looks like you have been at it for quite some time.

CiaranFromChance

Hey Eric,

No worries, thought maybe there was something wrong with the comments field. I would add the plugin that allows commenters to be notified when there are follow up remarks on a thread.

I just happened to come by and saw that you responded, it works better if I'm alerted by email when a response is added. It's makes for a more interactive experience and will help your blog grow.

Glad to see there are a few of us out here, it seems there are more and more CFP bloggers popping up, although it's still only a handful.

Drop me an email if you need any help, I've been through many of the ups and downs and could help you with any questions you might have.

thanks,
Ciaran

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