Instead of looking at assets in terms of equities and fixed income and alternatives, classify them according to the roles they play within an overall portfolio: growth, risk reduction, income and inflation protection.
“The key differentiator is that this would be based on the goals or the needs of individuals rather than defining a specific risk tolerance or allocation benchmark,” Hyman said.
Wealthy investors will seek out more objective advice as a result of all these issues, and firms are following suit, said Hyman, “We’ve seen firms moving more of their book of business to fee only and away from commissions.”