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Jargon Watch: 9 Buzzwords to Avoid

Kimberly Foss | Financial Planning, April 2014

Summary: In order to be more transparent, financial advisors should strive to eliminate jargon when conversing with clients. Among the offenders cited: adding alpha, yield curves, basis points and efficient frontiers.We asked a few advisors to add the buzzwords that they thought confused clients -- and to offer us alternative phrasings where possible. Click through to see their list.

The notions of active and passive management tend to confuse clients. If I asked a prospect with little financial background whether she would prefer active or passive investment management, she’d likely choose active."

Kimberly Foss, President, Empyrion Wealth Management

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