Q: What does SmartRiskTM do?
A: SmartRisk uses a heavy-tailed model to provide more precise portfolio risk measurement, because the actual risk of big losses in client portfolios is much greater than the standard deviation calculation would suggest. SmartRisk doesn’t show what we think will happen; it’s what could happen. This more realistic estimate of risk allows advisors to have a conversation with the client in advance of the next downturn, and set reasonable expectations. In addition,
Covisum tools make it easy to provide Social Security advice, model future tax situations and give more realistic estimates of downside portfolio risk
Recently, Bob Veres spoke with Covisum Founder and President, Joe Elsasser, CFP®. Here's the recap published in Technology Tools for Today.Why does Covisum focus on providing tools for financial advisors who specialize in pre-retirement and retirement planning?
This just in from FinancialPlanning:
The Dow finished the day down by 1,032.95 points, or 4.15% at 23,849.23 — down 2,767 points, or 10.4%. A drop of 10% from its high of 26,616 on Jan. 26 is considered a correction. The S&P 500 tumbled 2.96%, erasing its gains for the year. Ten-year Treasury yields flirted with four-year highs.
By, Ron Piccinini, PhD, Director of Product Development
From a risk manager’s perspective, a bank is a derivative on interest rates. Similarly, RIA practices can be viewed as a derivative on stock and bond markets. Here’s a quick way to estimate the sensitivity of your practice to markets.
By Ron Piccinini, PhD
This is inspired by a true story.
There was this fellow named Edmund. Edmund's high-priced education had taught him the virtues of diversification. His job as a banker paid him a nice sum of cash every month, plus bonus; he had bought a house, and his retirement account was comprised of a diversified mix of domestic and international stocks. On his office wall was hanging this quote from the Merchant of Venice: "My ventures are not in one bottom trusted, nor to one
New tools to prove you acted as a fiduciary
Bob Veres recently conducted a review of SmartRisk Pro, one of the risk tools Covisum recently acquired through PrairieSmarts.
Diversification is achieved when the gains in certain holdings of your portfolio offset the losses of other holdings. It means that you don’t have all (or most) of your eggs in the same basket. Diversification is critical because it reduces the impact of (bad) luck and isolated events on the overall performance of your portfolio. Check out how to quantify portfolio diversification: Are all your eggs in the same basket?