The famous 4% rule won’t work for many clients
Which has a greater impact on portfolios?
It was 12 years ago when Steve Barban received a referral from an accountant. The prospective clients were uber-wealthy, well-known Canadian icons. They weren’t happy with their current advisor, and wanted to recoup some of the $38 million they’d lost when the tech bubble burst. And they wanted to invest exclusively in stocks.
Fixed-income investing’s never been more challenging. All traditional bond investors have been able to do, says Philip Mesman, a portfolio manager at Picton Mahoney Asset Management in Toronto, is decrease bond duration and increase cash. “That results in mediocre returns; or, as we saw last year, negative returns.”
What happens when clients own too much of one thing.
Fiona Wilson anticipates the tide turning to a stock picker’s market
Your boomer clients are retiring, so they’re going to be spending the money in their portfolios.
Netanya knows a lot of people lost money in 2008, but thinks her advisor did a poor job by losing more than half her money.
Your boomer clients are retiring, so they’re going to be spending the money in their portfolios. Most clients need to stay invested—and do well—if they’re to meet retirement spending targets. But some can’t handle the risk needed to fund all their lifestyle goals. You’ll be the one who delivers this news. Here are some strategies for making the message click.
Managers should employ smart beta strategies efficiently.