The approach eases clients’ minds because they know that part of their portfolio is safe from market swings and always available for income, he said.

Such strategies have grown more popular since the 2008 crisis, said Couto. Some advisors now pitch “outcome-oriented” investing that focuses on clients' objectives, such as having a certain dollar amount for retirement or putting kids through college, instead of returns. The advisor may speak of dividing assets into "buckets," each designed for certain objectives, such as achieving growth, hedging against inflation, or preserving capital.

Some advisors go even broader when adding investments to clients' portfolios. They may include commodities, such as gold or timber, which could move in a different direction from stocks, or market-neutral funds that claim to do well regardless of the direction of the market. Couto cautions, though, that the risks and fees associated with some such strategies may overwhelm the benefits.

He suggests advisors build stability into portfolios by adding less-volatile bonds, shares of dividend-paying companies and quality big companies with market values over $5 billion.

More importantly, having conversations about risk and volatility can separate the great advisors from the average ones, says Couto. “One of the best things advisors can do is help clients understand their long term objectives…and stay focused on their ‘personal economy,’” he says.

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