Exciting Updates to the Financial Behavior Report: Discover What's New

At DNA Behavior, we constantly innovate to deliver tools that empower advisors and clients to make better decisions. Our business—the business of understanding people—is not just about innovation for innovation's sake. It’s about uncovering the insights that define us and our clients and using those insights to drive meaningful conversations and relationships.

This latest update to the Financial Behavior Report was inspired by feedback from our valued user community. Your input (check out our public roadmap) plays a vital role in shaping the future of DNA Behavior. Let’s dive into the exciting updates that are now live!

Click through and explore the new report below: 

What's New? 

1. Detailed Breakdown of Risk Propensity and Risk Tolerance
We’ve added a comprehensive analysis of two key risk behaviors:

• Risk Propensity for Taking Chances: This measures a client’s natural inclination to take calculated risks.
• Risk Tolerance for Living with Losses: This measures how comfortable a client is with enduring financial losses over time.

Why It Matters:
These insights allow for deeper, more engaging discussions with your clients about their risk behaviors and financial behaviors. To see how these insights can help your business:

• Generate a Financial Behavior Report.
• Visit pages 5, 6, and 7, where you’ll find the details that build up the client’s risk behaviors.

2. Percentile-Based Scoring
Each risk behavior is reported using two formats for clarity:

• Population Percentiles: Benchmarked against millions of individuals who have completed the Natural Behavior Discovery, providing a unique comparison.
• Risk Ratings: Categorized as Low, Medium, or High, with specific percentile ranges for each level.

For example:

• Low: 1 - 44%
• Medium: 45 - 55%
• High: 55 - 99%

This dual approach helps you and your clients visualize their position among a larger population, sparking conversations about what makes them unique.

3. Natural Behavior Portfolio Risk Group
This section introduces personalized portfolio structures based on the client’s natural behaviors. Advisors can use these insights to:

• Guide clients toward portfolio selections that align with their unique preferences.
• Foster deep discussions with client couples on how their behaviors align or differ, leading to consensus on a final portfolio strategy.

It’s important to note that the Overall Portfolio Risk Group, ultimately used in the Financial Plan and Investment Policy Statement, may also reflect other factors, including financial goals and capacity. To foster these conversations with your clients, we have included the additional sections on pages 6 and 7. 

4. Consideration Factors for Final Risk Group Determination
On pages 6 and 7, you’ll find two key sections designed to assist in refining the Overall Portfolio Risk Group:

• Review the Investment Portfolio Risk-Reward Analysis:
  This table highlights critical elements such as the required portfolio returns to meet goals and the client’s current financial capacity.
• Review Your Potential Learned Risk Behavior Motivations:
  This section evaluates how Natural Risk Behavior might be influenced by life experiences, education, or other circumstances.

By analyzing these elements, advisors and clients can collaboratively determine the most suitable portfolio strategy.