TAG Advisory Services's Insight

Trust Advisory Group's Bill McCance met with Christopher Hensley on a recent episode of the podcast "MONEY MATTERS" to discuss Fiduciary Standard Regulations and Succession Planning. Listen in as they talk about how a lack of uniform regulation could ultimately increase costs for clients.

TAG Advisory Services's Insight

A key concern of sequence risk is predicated on the fear that the economy will collapse at some time during the investor’s investment time horizon and impair their ability to meet their retirement goals. Because the impact of sequence risk is magnified by the economy’s condition and the amount that the investor withdraws each year, it’s critical that advisors are able to appropriately advise on how much a client is able to withdraw each year in dynamic economic environments and still be able to remain on track to meet his/her goals. In this article, the author evaluates portfolio returns under varying withdrawal levels and economic conditions.

TAG Advisory Services's Insight

Retail investors have lately been demonstrating a preference for passive management instead of active management over the negative perception of management fees and their actual added value to investors. In light of this while also being cognizant of the fact that most clients have certain liquidity requirements for their portfolios, it is more important than ever for advisors to consider sequence risk in the context of active management and its impact on client portfolio returns. But what exactly is sequence risk, and what role does the economy play in magnifying the impact of such a risk? In this article, the author breaks down in layman’s terms the critical components of sequence risk for a retirement portfolio and discusses basic measures of mitigating this.

TAG Advisory Services's Insight

Read the original article by William McCance, President and CEO of TAG Group, Inc.

TAG Advisory Services's Insight

One of the most significant concerns that clients face is the risk of outliving their assets. There are many factors that play into this, such as how much can be withdrawn each year, the investment time horizon, what level of risk-adjusted returns are being targeted, etc., all of which are also a part of sequence risk. Given the uncertainty surrounding the economy and where it’s headed, advisors should be able to help clients evaluate each of these factors specific to their circumstances in a manner that minimizes impacts to their portfolios. In this article, the author examines four simple methods and products that investors can use to mitigate such risks.