In the competition among retirement-planning methodologies, systematic withdrawals have been winning the battle against the essential-discretionary approach. But given today's low interest rates, the essential-discretionary approach may work better for many clients, especially if SPIAs are used.
Client emotions can swing from fear to greed (and from hysteria to elation). Ron Florance, CFA, former deputy chief investment officer at Wells Fargo, outlines seven key principles that can help you convince clients to stay the course.
A couple of days before her 18th birthday, my daughter asked, "Will I get any Social Security?" At the same instant, I replied "absolutely," another adult at the table offered a "Hell, no!" setting off a flurry of statements from the others at the table about how the system is in dire straits. I sat and listened.
What I heard was a fundamental lack of understanding of how Social Security works, often expressed by regurgitating sound bites from cable news.
The sustainability of traditional public sector defined benefit (DB) plans has become front-page news and the subject of acrimonious debates usually framed in stark terms of DB versus DC (defined contribution).
Growth may slow, as Robert Gordon contends, at least when measured by GDP - if only because population growth is slowing. But that is not a foregone conclusion. And even if it were to happen, it doesn't mean that global standards of living would face a similar deceleration. Moreover, GDP doesn't fully capture the improvements in the standard of living that come with advanced technology.
As the financial services industry slowly but steadily becomes more tech-savvy and technology-enabled, including the adoption of online models for the delivery and implementtion financial advice, the line of where human financial advice ends and...
As so-called "robo-advisors" continue to grow, offering their services to more and more consumers at a modest 0.15% - 0.35% cost, the question arises whether such services will ultimately be a threat to traditional advisors.