How Financial Advisors Can Simplify Asset Allocation for Clients

Asset allocation is important for you to explain clearly as an advisor, so your clients fully understand their overall investment strategy. However, taking the somewhat broad topic of asset allocation and attempting to explain it to those not as well versed in wealth management can be a challenge at times.

That’s where simplifying these concepts is key. When you do, you’ll engage your clients and make the main tenets of asset allocation easily digestible for them. This will in turn strengthen your relationship and make it easier to help them achieve their long and short-term goals.

Employ Visuals and Graphics

The financial realm can be confusing to the average person, so it’s important to break it down in a way your clients understand. Since many people are visual learners, one of the best ways to keep your clients in the loop is to use graphics when talking about asset allocation. This makes the way you explain their wealth and their financial planning options easier to follow, so they feel more empowered.

In an episode of The Bucket Plan® On-Demand podcast, Ivy Pierson, CEP, MBA, founder of Pierson Wealth Management, and Joe Salerno, of Salerno Financial Group both describe how using visuals improved the asset allocation dialogue they have with their clients.

Use Analogies

This strategy often pairs well with visual aids because it helps you drive your point home and allows clients to see their finances from a fresh perspective.

When your clients can grasp what their wealth represents and how they need to allocate their assets to ensure a comfortable future, it inspires them to be proactive when it matters — now. Some examples include organizing your clients’ assets into “buckets” representing different time frames or likening your clients’ assets to a coursed-out meal.


It’s easy to forget as a financial professional that your clients aren’t as familiar with the territory as you, which includes some important language. While some concepts surrounding asset allocation are jargon-laden, they can very easily be pared down.

Some key phrases you should clarify plainly when going into detail about asset structuring are:

  • Diversification/ a diversified portfolio: talk about the effects of spreading wealth across several asset classes, such as having a mix of stocks, bonds, and cash.
  • Risk tolerance: explain how the level of risk they are willing and capable of enduring impacts their investment return and overall plan.
  • Time horizon: make sure your client understands how the amount of time they hold their assets factors into them reaching their goals.

Customize Your Explanations

Every client’s financial situation is different, so to best simplify asset allocation, you should work details from their lifestyle into your conversation. This strategy is especially helpful when assessing their short and long-term financial goals. Personalize your approach by asking if there are any trips they plan on taking, if there are any major life events such as children getting married, or if they have any experience with alternative investments, such as real estate.

Helping your clients greater understand their assets and options for investing and securing retirement income will strengthen your relationship with them now and in the future. To learn about proven processes that can help simplify asset allocation for your clients even more, book a call today.

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.