Don't judge, just advise.That has always been one of our mantras as we've developed strong relationships with our clients over the years.

Recently, a couple in their early 60s, and clients of ours, was facing the harsh reality that they had fallen well behind in their efforts to reach their retirement goals. They are hardly alone in this scenario as recent market conditions have left many investors fearful of jumping back into a market they view as too risky. We understood their hesitation in subjecting themselves to higher levels of risk in an effort to make up for lost time, but the reality was that their retirement dreams and goals did not match up with their risk profile. We still needed to explain to the couple that in our opinion the odds were very high that they wouldn't have the money they needed to retire comfortably without making some sort of change. What they needed was a needs-based assessment.

A needs-based assessment goes beyond a risk-based evaluation to create a more accurate picture of the plan for the future. We consider our clients' health, their current lifestyle, what they plan on doing during retirement and the legacy they are hoping to leave their family and heirs. Our job as a primary advisor is to help build their retirement road map. Our clients understand that nothing is guaranteed, but by giving them options based on what makes the most sense for their unique needs, we can help to paint a more accurate picture on which to base their financial decisions.

With this couple, we discussed alternatives to taking on more risk. In the end, they had three choices. They could adjust their retirement planning by working three more years. Or, they could drop down to part-time-a scenario we find many of our clients actually enjoy during retirement-for eight more years. Finally, they could lower their monthly spending plans by 25%. It was an unenviable position for our clients to be faced with, but our needs-based assessment gave them the road map they needed. In the end, they decided to work part-time in retirement.

All of our clients have entrusted us to be effective stewards of their assets and our top priority is helping them most effectively manage their wealth. Part of that stewardship revolves around the unique strategies we use to help them see the entire picture so they can make the best financial decisions possible.

We often see cases where clients come to us with a portfolio where the asset allocation decisions have been made based solely on their risk profile. A more formulaic approach to asset allocation, risk profiling factors in the client's age, net income, net worth, time until retirement and, particularly, the client's attitude and emotions toward risk.

We don't discount the validity of understanding our clients' tolerance for risk. However, many advisors solely use that profile to determine the client's asset allocation, which tends to be primarily built around his or her ability to handle market volatility. But often times, the client's needs may be far different than what a risk profile might show. The centerpiece of our business approach is to also incorporate a needs-based assessment that will more effectively determine the appropriate investment strategies to help our clients meet their financial planning goals.

For an example of when a risk profile alone may not accurately determine an investor's needs, consider another couple who came to us. In their mid-60s, their growth portfolio heavily stock-oriented. This strategy had, over longer periods of time, produced higher returns for them.

The asset allocation made sense to this couple because, after all, historical perspective on the stock market shows us that investors do better as an owner in corporate America (stocks) than they do as a lender to it (bonds). So this couple assumed that because their profile showed they could handle the risk that it was correct to continue to subject themselves to the market's volatility.

A needs-based assessment revealed a different picture. These clients were entering the distribution phase of their lives. And when assessing their plan for the future and factoring in their income needs, we determined that a decreased exposure to stocks and a movement into bonds and other income-producing investments with lower volatility was what they needed to retire comfortably. After seeing the entire picture laid out in front of them, our clients agreed and increased their exposure to bonds. And we used other investments to lower the portfolio's volatility. These adjustments lowered their overall level of risk and gave them more peace of mind.