woman drinking coffee in kitchen

Financial DNA

What’s your financial DNA®?

Your personality is as unique as your fingerprint. At Millstone Evans, we get to know who you are before we explore your financial goals.

That’s why we use an assessment tool called Financial DNA®.

Research shows 95% of wealth creation stems from your behavior/personal talents, and just 5% from investments. Emotions play a crucial role in financial matters. Discerning your risk-reward profile will help us help you manage your investments – and your blood pressure.

Understanding People Before Numbers

“It’s interesting what financial advisors ask people to do,” says Sacha Millstone, Senior Vice President of Investments at the Millstone Evans Group.

“We ask them to tell us every single thing about their financial selves as soon as we meet them. Therapists will tell you their clients will talk all about their sex lives, and not at all about money, ever! It’s one of the most private pieces of data that people have, and it’s very uncomfortable. Financial DNA® helps me bust through that reticence.”

Sounds Scientific – What is It?

“I started looking for Financial DNA®  after I experienced my first bear market as an advisor,” Sacha recalls. “If you don’t know how your clients really think about money before a bear market hits, you’re going to see them make mistakes that are really hard to recover from – and it’s hard for you to do anything about it if you’re blindsided by the client’s reaction.”

“Financial DNA® is an easy email questionnaire that takes about 20 to 30 minutes to answer,” she explains. “People will answer questions differently if they’re feeling positive about markets, or if they’re feeling scared. I learned that just asking clients basic questions was not enough. So I looked for a tool that would really give me insight into their true feelings about risk.”

Here’s How…

The Financial DNA® tool separates questionnaire results into two scores:

  • A client’s propensity to take chances
  • A client’s ability to live with losses

Then What?

“Then we do a meeting. 100% of the time, going over the answers together leads to a fascinating conversation, even more so with couples,” says Sacha. “My clients love it because they want to connect with their advisors. Financial DNA® helps us get to a deep level – clients share stories that have impacted their personal history, and they leave feeling like I understand them.”

What’s the Payoff?

For Sacha, “All you have to do is find one person with a high propensity to take chances, and a low ability to live with losses, to understand why Financial DNA®  is so valuable.”

For clients, it’s a way to feel their investments reflect not just their objectives, but their risk tolerance.

As Sacha sees it, “You could not find that out any other way – other than going through a bear market, and having clients lose money and get very upset. Now, I have a tool that will not only tell me about dangerous situations like that, but will help me tailor my recommendations to plans they can feel very comfortable with.”

To learn more about Financial DNA®, click here

All opinions expressed are those of the author and not necessarily those of Raymond James. Opinions expressed are as of this date and subject to change at any time without notice.