Riskalyze with Aaron Klein (CEO) | E63

Creating better client outcomes through effective risk tolerance assessment and communication.

Summary:

In this 63rd episode of Fintech Impact, Jason Pereira, award-winning financial planner, university lecturer, writer, and host has an informative interview with Aaron Klein, CEO, and Co-Founder of Riskalyze, a risk tolerance assessment and illustration tool that helps advisors analyze the amount of risk in their client's portfolios. Aaron opens up about how Riskalyze operates, how it can benefit advisors and the importance of risk assessment in the financial industry.

Time Stamped Show Notes:

● 00:40: – Arron explains what Riskalyze is

● 03:11: – What is the Riskalyze definition of goals-based investing

● 05:00: – Why does Riskalyze put risk-centric advice at the forefront

● 07:00: – The biggest risk is if the market drops a client pulls out and missed the

upswing later

● 08:24: – How does the “risk number” that Riskalyze created help assess risk

● 12:44: – Understand how much risk clients need to reach their goals

● 16:14: – What types of methods does Riskalyze use to calculate risk probability

● 17:22: – Advisors need to be clear on what they are offering clients

● 19:08: – Has Aaron ever been asked to testify in court

● 20:54: – Riskalyze feels that their competition is a spreadsheet and gut feelings

● 24:22 – Risk tolerance data shows that 52% of investors between 20-29 didn’t fit

the stereotype of being aggressive investors

● 29:55: – What does the Riskalyze user experience look like

● 31:44: – Riskalyze doesn’t consider themselves a financial planning company

● 34:34: – Riskalyze aims to help advisors democratize their access to advice

● 35:15: – What have been the biggest challenges that Riskalyze has faced

● 38:52: – What gets Aaron Klein up in the morning and excited about Riskalyze

3 Key Points:

1. Great short-term decisions are the fuel that successful advisors to create long-term

financial outcomes.

2. Riskalyze has around 200 “Riskalyzers” serving over 20,000 financial advisors.

3. Financial advisement needs to move away from feelings and into quantifiable

recommendations.

Tweetable Quotes:

- “Our mission is empowering the world to invest fearlessly.” – Aaron Klein.

- “We are swamped with advisors calling us when markets are down.” – Aaron Klein.

- “Are you selling financial products or are you selling your advice. You can’t wear both

hats.” – Aaron Klein.

Resources Mentioned:

● Facebook – @FintechImpact

● LinkedIn – Jason Pereira

● LinkedIn - Aaron Klein

● Riskalyze.com – Website for Riskalyze

● @AaronKlein – Twitter for Aaron Klein