Can Retirement Income Be Modernized? A Guide for Financial Advisors.

Posted by Jon Robinson on 10/3/22 3:58 PM

Just one of these scenarios likely would be enough to cause concern for an investor:

  • Potential end of the post-Global Financial Crisis secular bull market in equities
  • Prospect of the first sustained rising U.S. interest rate environment in more than 40 years
  • Highest inflation level in four decades

Yet in 2022, we’re facing all three at once. It’s a potentially catastrophic combination, especially for investors nearing or in the early years of retirement.

In my opinion, this is a “perfect storm” (yes, I know that’s a super cliché saying – even I cringed when typing it). And it demonstrates how the need for a more modern approach to retirement income has never been greater. It also motivated my colleague, Brandon Langley, and I to embark on a research project into different approaches to sustaining clients throughout retirement. Today, we’ve released our findings in a new white paper available to financial advisors, “An Advisor’s Guide to Protecting Retirement Income.”

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Topics: Systematic Investing

What The Data Says About Market Crashes

Posted by Jon Robinson on 9/8/22 1:00 PM

When we travel by air, my wife usually points out that she thinks it would be better if people by windows boarded first; that way, anyone in an aisle or middle seat wouldn’t have to keep standing up. Meanwhile, I think the Southwest Airlines style of pick-any-open-seat is optimal.

Our “gut feelings” were recently rendered irrelevant when we ran across an old episode of “MythBusters.” In it, the cast built a mock 173-seat aircraft and tested several boarding approaches using real people and luggage.

Relying on the data cut through the emotional biases. It also inspired me to take a similar data-backed look at a common question I hear about systematic investing: Is this style of investing capable of reacting fast enough to declining markets?

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Topics: Systematic Investing

Stocks on Sale? Or About To Go On Final Clearance?

Posted by Mike Carlone on 8/18/22 10:43 AM

During market drawdowns, you often hear financial media types talking about stocks being “on sale.”

This phrase has always irked me.

It’s completely imprecise and utterly useless. Clichés may help sell airtime, but they get you nowhere toward designing or implementing a comprehensive investment process.

Instead of leaning on trite phrases, wouldn’t it be a lot less stressful to have an investing process that can smooth out the ride and generate a more optimal client experience?

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Topics: Systematic Investing

Motivation or Discipline?

Posted by Tommy Mayes on 8/4/22 12:34 PM

How many times have you stopped and considered the real meaning of words used every day? More importantly, how often do you challenge your own notion of that meaning by looking it up?

Recently I heard a friend and father I respect tell his son that discipline is more important than motivation. He said, “Motivation can come and go, but discipline will take you where you must go, even when you are not feeling very motivated.” It was compelling enough to me that I jotted his words down and started thinking about the meaning of those words – and also their implications.

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Topics: Behavioral Finance

Side Effects of the Stock Market May Include…

Posted by Brandon Langley on 7/21/22 11:04 AM

Pretty much everyone has experienced the agony having their TV watching interrupted by the ubiquitous pharmaceutical advertisement. In fact, they have become so commonplace that an assortment of entertaining spoofs have been created, like this one.

As the video above highlights, one of the memorable aspects for many of these medications is the absurdly long list of expected and potential side effects. Now, I respect the fact that these disclosures are important in providing consumers the necessary information to make an informed decision, but that doesn’t eliminate the irony of risking death for seasonal allergy relief.

After enduring yet another round of drug ads during a recent weekend of baseball, I was struck by the similarities between prescription medication and the stock market. Both are designed to address a specific problem, from eczema to paying for long-term healthcare and education expenses. Both also have side effects.

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Topics: Systematic Investing

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