The Exceptional Advisor Podcast Investments & Wealth Institute

Steve Gresham, managing principal at Next Chapter, discusses in this Exceptional Advisor podcast with host Robert Powell delves into the complexities and challenges of retirement planning in the modern era. Gresham discusses the evolving nature of retirement, emphasizing the gap between people's expectations and their level of preparation. He highlights the importance of planning and adapting to changing needs, both financially and emotionally. The conversation also touches on the role of financial advisors in guiding clients through these challenges, stressing the need for improved communication, understanding of aging, and comprehensive approaches to managing retirement finances and health considerations.
Learn more at https://publications.investmentsandwealth.org/iwmonitor/library/item/november_december_2023/4161432/

In this podcast, Dalbar founder Lou Harvey discusses the history of his firm, which pioneered research into quantifying the impact of investor behavior on returns. He reflects on key initiatives like the Quantitative Analysis of Investor Behavior (QAIB) report, which revealed the significant performance gap between mutual fund investors and the funds they invest in. Harvey also shares his perspective on current industry trends and the future outlook. He sees artificial intelligence playing a bigger role in financial advice, with humans focused more on interpreting AI recommendations versus specialized expertise. Harvey argues asset allocation should be highly personalized based on an investor's specific situation and needs. He advocates for a fiduciary standard across the advice industry. Throughout, Harvey emphasizes the importance of a personal approach in understanding clients and serving their best interests. He urges advisors to go beyond purely investment considerations to incorporate critical lifestyle factors impacting financial decisions.

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In this roundtable discussion, experts Anna Rappaport, Rob Austin, and Michael Doshier provide insights on key retirement issues including spending patterns, debt levels, housing costs, family support, and using products like annuities and reverse mortgages.
 
Key takeaways:
- Retiree spending declines on average 2% per year, but is often "lumpy" with large one-time expenses
- Housing represents the biggest expense for retirees, but many fail to incorporate home equity into financial plans
- More retirees carry debt and support adult children financially than in the past
- Annuities and reverse mortgages remain underutilized due to complexity, lack of advisor expertise  
 
The experts emphasize the need for holistic planning that accounts for healthcare, housing, family obligations, and other qualitative factors - not just portfolio returns. They advise financial advisors to take an expansive view when working with retiree clients.

Rashmi Badwe, COO of TIAA Wealth Management, discusses how technology like AI can enhance client service and the convergence of capabilities across financial domains.

In episode 117 of the Exceptional Advisor Podcast guests Dan Otter and Scott Dauenhauer of 403bwise discuss the issues with 403(b) retirement plans commonly used by teachers and the opportunities for financial advisors to help teachers save adequately for retirement.

Bob Powell and David Alan Macchia discuss the implications of artificial intelligence (AI) for the financial advisory profession. Macchia highlights AI's potential advantages, such as cost-efficiency and a unique user experience, but also acknowledges its current limitations in providing accurate advice. He predicts the rise of "digital humans" that merge vast financial knowledge with a human-like interface. The conversation underscores the importance of trust in the advisory profession and debates whether AI can achieve a similar trust level. Both participants emphasize the need for human advisors to adapt and integrate AI into their practices to stay competitive in the future.