The Robo Report™ has opened accounts across the most prominent robo advisors and tracks performance across the portfolios. The portfolios are created by presenting the same investor type to robo advisors, seeking a moderate portfolio of 60% equities and 40% fixed income in the taxable accounts and the most aggressive portfolio available in the IRA accounts.
The types of clients who have established or who would be excellent candidates to create donor-advised funds include the following.
Robo advice is the newest disruptor in the financial industry and many advisors are not sure how to interpret this new investment advice solution. Some are writing it off as a solution for lower asset customers, some are concerned about the competitive threat, while others are embracing the technology for use in their own business.
Advisors usually understand how donor-advised funds (DAFs) work, their tax benefits and how they can manage the investments in their clients’ DAF accounts. However, advisors need to help explain their benefits in comparison to donating directly to a charity.
To better serve and retain retired or soon-to-be retired clients, advisors should use the actuarial budget benchmark, an annual spending plan developed using actuarial and financial economic principles.
Research has shown that individual and household spending declines in real-dollar terms upon and following retirement. Yet most financial advisors still use traditional retirement planning approaches that target constant real-dollar spending for the client’s planning period.
It is a post-financial-crisis myth that austerity-minded conservative governments always favor fiscal prudence while redistribution-oriented progressives view large deficits as the world’s biggest free lunch. This simplistic perspective badly misses the true underlying political economy of deficits.
Your clients want to know how much they can afford to spend each year and meet their financial objectives, not how much they can withdraw from their investment portfolio. There is only one withdrawal plan that financial advisors should use for their clients.
Trump’s victory may be a positive for the US economy, but the wild car is Trump’s stance on free trade. Trump’s policy proposals for lower regulation and lower taxes could be highly stimulative to the US economy. The biggest uncertainty for future economic growth relate to his trade policy and whether Congress will be able to temper the more extreme aspects of his proposals.