Nick Lincoln at HUM London 2018
Capacity for Loss: Slaying the Wrong Dragon
At Humans Under Management London 2018, speaker Nick Lincoln, a leading voice in financial planning, presented on the critical topic of capacity for loss.
This talk addresses the fundamental misconception in financial advising regarding clients' capacity for loss versus their actual needs. It challenges advisers to reconsider the risks they communicate to clients and the implications of poor risk assessment practices.
Key Points:
- Emphasises the importance of integrating financial planning with investment strategies to avoid misleading clients about risk.
- Highlights the dangers of relying on outdated capacity for loss frameworks that can lead to inadequate retirement planning.
- Encourages advisers to have honest discussions about inflation and its impact on long-term client wealth.
- Proposes practical solutions, such as maintaining a cash buffer to manage market fluctuations without incurring permanent losses.
Watching this video will enhance your understanding of effective risk communication in financial advising, ultimately improving client relationships and outcomes. Gain insights that empower you to challenge flawed practices and adopt a more client-centric approach.
