The top conversations on APViewpoint last week were started by Ken Steiner, Stephanie Bogan and Eric Weigel. They generated thoughtful discussion with wide ranging opinions on: the only withdrawal plan you will ever need; three secrets to limitless leadership; and outsourcing investment management.
Ken Steiner’s The Only Withdrawal Plan You Will Ever Need inspired seven comments from advisors discussing strategic withdrawal plans for retirees. Members commended Steiner for his recent article, which introduced “the actuarial approach” for developing a reasonable retirement spending budget. They agreed with Steiner’s claim that many strategic withdrawal plans miss the important point that clients “want to know approximately how much they can afford to spend each year and meet their financial objectives, not how much they can withdraw from their investment portfolio.” However, APViewpoint members argued that Steiner should consider Monte Carlo modeling in conjunction with the process he outlined because it “can be useful in helping clients select an investment strategy.” Some members also suggested that Steiner’s approach to retirement spending could be improved by comparing fixed expenses to constant revenue streams like Social Security and pensions.
APViewpoint hosted another well-attended webinar on November 16, 3 Secrets to Limitless Leadership, a Breakthrough Business and a Life You Love, presented by business strategist Stephanie Bogan. In this presentation, Bogan discussed the lessons she learned on her journey from home office start-up to the sale of her firm to a Fortune 200 company. She also discussed the challenges advisors face in managing and growing their firms, and shared insights to help advisors succeed as competition rises. She suggested that advisors can improve their business results by reconsidering their current fee structure, and she urged them to focus on improving their client service and staff management models. Bogan will answer questions from her webinar in this follow up conversation, and a replay of the webinar can be viewed here.
Eric Weigel’s Outsourcing Investment Management received four comments from advisors discussing whether they can grow their business by outsourcing investment management to money managers or TAMPs. Most members agreed that advisors can benefit when they outsource to a money manager with experience and a proven track record because it allows them to “add more value through education, relationship management, planning, or some other specialty.” While most advisors agreed that outsourcing investment management can be an effective way to grow their practice, they cited concerns about the costs and fiduciary obligations associated with outsourcing. Some suggested that under the new DOL rules, advisors may now have a greater fiduciary obligation to monitor the performance and composition of an outsourced portfolio. However, others suggested that outsourcing may be beneficial “from a DOL perspective [because] the advantage is that you have consistency, better cost controls, less key man risk, and repeatable processes across clients.”
Our next APViewpoint webinar, Introducing Long/Short Investing to Clients, presented by Calamos Investments, takes place on Thursday, December 1 at 4:15 pm ET. In this presentation, veteran hedge fund manager Michael Grant will discuss long/short investing, and he will provide tools for identifying and educating investors who can benefit from this strategy.
Marianne Brunet is a financial markets analyst with Advisor Perspectives.
