“Investing Fearlessly” with Riskalyze’s Aaron Klein

This article is relevant to financial professionals who are considering offering Model Portfolios to their clients. If you are an individual investor interested in WisdomTree ETF Model Portfolios, please inquire with your financial professional. Not all financial professionals have access to these Model Portfolios. 

On Behind the Markets, a podcast brought to you by Jeremy Schwartz, WisdomTree’s Global Chief Investment Officer, we talk to market strategists, business executives and financial advisors about important trends underpinning the financial markets. 

In this episode, I had the pleasure of joining Jeremy to speak with Aaron Klein, CEO and co-founder of Riskalyze—a financial technology company that provides software as a service to tens of thousands of financial advisors in the United States.

Listeners will hear about:

  • How Aaron and Co-founder Mike McDaniel came up with the idea of Riskalyze.
    • The need for alignment between a client’s risk tolerance and their overall portfolio risk.
    • Putting the “feet and inches” into portfolio risk, which gave birth to the risk number—an objective, mathematical approach to removing subjectivity by quantifying the risk of investors and portfolios.
  • The difference between risk tolerance and market sentiment and how that translates to using data to make more informed decisions.
    • Riskalyze’s mission is to empower advisors to transform fearful investors (clients) who make bad short-term decisions into fearless investors who make great short-term decisions. Ultimately, those great short-term decisions are the inputs that financial advisors use to deliver great long-term financial outcomes.
    • The importance of using data to make more informed decisions—as shown by the market crash of 2020.
  • The growth of Riskalyze’s Partner Store, which hosts third-party Model Portfolios, and how that’s been a win for investors, advisors and the third-party asset managers.
    • WisdomTree is a proud partner of Riskalyze’s model marketplace, where we offer a range of ETF Model Portfolios that advisors can subscribe to.
  • Platform integrations recently announced, including Onramp Invest—a comprehensive cryptoasset management solution allowing financial advisors to help their clients confidently and intelligently invest in digital assets.
  • The nine core values that fuel Riskalyze and lessons learned by Aaron over the past decade relating to hiring.
    • There are four types of people that Riskalyze’s culture “rejects”: people with a victim mentality, narcissists who think it’s all about them, people who tear down others and missionaries who don’t care about their mission. 
  • The future of Riskalyze and new product launches, including a tool called Discovery that serves as the “Google” of investment research.
  • Hope Takes Root—an initiative he cofounded that uses vocational training and life mentoring to change the future for orphans and at-risk kids in Ethiopia. To learn more, please visit their website.

 

You can listen to our full conversation with Aaron Klein below.

 

Important Risks Related to this Article

For Retail Investors: WisdomTree’s Model Portfolios are not intended to constitute investment advice or investment recommendations from WisdomTree. Your investment advisor may or may not implement WisdomTree’s Model Portfolios in your account. The performance of your account may differ from the performance shown for a variety of reasons, including but not limited to: your investment advisor, and not WisdomTree, is responsible for implementing trades in the accounts; differences in market conditions; client-imposed investment restrictions; the timing of client investments and withdrawals; fees payable; and/or other factors. WisdomTree is not responsible for determining the suitability or appropriateness of a strategy based on WisdomTree’s Model Portfolios. WisdomTree does not have investment discretion and does not place trade orders for your account. This material has been created by WisdomTree, and the information included herein has not been verified by your investment advisor and may differ from information provided by your investment advisor. WisdomTree does not undertake to provide impartial investment advice or give advice in a fiduciary capacity. Further, WisdomTree receives revenue in the form of advisory fees for our exchange-traded Funds and management fees for our collective investment trusts.

For Financial Advisors: WisdomTree Model Portfolio information is designed to be used by financial advisors solely as an educational resource, along with other potential resources advisors may consider, in providing services to their end clients. WisdomTree’s Model Portfolios and related content are for information only and are not intended to provide, and should not be relied on for, tax, legal, accounting, investment or financial planning advice by WisdomTree, nor should any WisdomTree Model Portfolio information be considered or relied upon as investment advice or as a recommendation from WisdomTree, including regarding the use or suitability of any WisdomTree Model Portfolio, any particular security or any particular strategy.

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Source: wisdomtree.com

“Investing Fearlessly” with Riskalyze’s Aaron Klein