Thursday, May 1, 2014

IIAC Report on Seniors

The report identifies why it is important for investment dealers and advisors to remain vigilant when dealing with their senior clients. These factors include:
 With few exceptions, seniors have limited ability to replenish capital losses through future income from other sources;
 Extra caution needs to be exercised when dealing with seniors engaged in higher risk investments or strategies, or who deplete capital through withdrawals that exceed returns;
 Unrealistic client expectations for investment income which is inconsistent with a low risk tolerance;
 Senior clients’ fears and uncertainty about their future financial situation and life circumstances can be strong behavioural influences in their investment activities; and
 Seniors are more susceptible to physical (e.g. hearing, vision) and cognitive (e.g. memory, context) impairments which need to be accommodated.

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