Traditional risk tolerance tools in wealth management have long relied on gauging investors’ emotions toward risk. However, research shows that many clients lack a thorough understanding of investment risk and its impact on their financial objectives. This gap can lead to suboptimal investment outcomes when emotional responses, rather than factual insights, shape portfolio decisions.
Enter Sage, an AI-powered investment assistant that redefines how advisors assess risk and make recommendations. Rather than solely measuring a client’s “risk preference” or emotional comfort level, Sage offers a multi-dimensional risk score that includes both “risk capacity” (an objective assessment of the client’s ability to take on risk, given their current life and financial situation) and “portfolio risk” (the real risk level in the client’s portfolio). This data-driven approach provides a fuller, more accurate picture of each client’s unique risk profile.
By focusing on real-time data and AI-driven insights, Sage enables advisors to make timely adjustments aligned with market changes and firm strategies. Sage’s adaptive capabilities allow advisors to access client-specific recommendations instantly, ensuring portfolios remain aligned with each client’s goals. Its natural language interface empowers advisors to handle complex requests, like finding a model portfolio that matches desired outcomes and preferences for risk, cost and exposures, effortlessly.
In a world where financial markets and client expectations are ever-evolving, Sage’s comprehensive approach to risk management supports advisors in delivering not just personalized, but precise investment strategies. By moving beyond traditional, static risk assessments, Sage is pioneering a future in wealth management where every recommendation combines the advisor’s deep expertise with data-driven insights, enhancing both client satisfaction and portfolio outcomes.