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Every day, roughly 10,000 American baby boomers reach retirement age. But are they financially ready for...

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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.

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With sequence risk, you may earn a lower return in retirement than you had planned. Here's how it impacts you in your retirement...

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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.

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With a good plan, the right people, and adequate time, retirement is...

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

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A typical fireside chat at an event in October quickly turned into a firestorm after billionaire investment advisor Ken Fisher made crude remarks that have sparked a renewed discussion on the treatment of women in financial...

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TAG in the News

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Retiring during the longest-running bull market in history can be scary, as some begin to wonder when the good times will...

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.

You’ve no doubt heard the old adage that 20% of your effort produces 80% of your results. Since the early 1900’s when this principle was first developed by Italian economist Vilfredo Pareto, we have seen the 80/20 Rule show up in all corners of business, even financial advising. Take a look at any advisory practice and you’ll no doubt see the same pattern: 80% of the revenue is generated from only around 20% of clients. And if we treat all clients equally, which many of us do, this means...

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You can increase trust and retention by communicating regularly with your clients and following the 80/20...

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If 80% of a financial advisor’s positive business results are driven by only 20% of their clients, what does that say about that financial advisor’s relationship with their clientele? In this article, the author suggests the 80/20 rule should be applied to an advisor’s communication practices so they can earn more trust from their clients and drive better business results. Specifically, the author suggests devoting only 20% of your communications to discussing business with clients while the remaining 80% is devoted to building trust and offering additional value. While this may sound counterintuitive, it’s an essential step to take in an industry that is wholly dependent upon trust and transparency.

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Financial advisors are small business owners. If they aren’t consistently offering their expertise, they are not maximizing their profitability and...

TAG Advisory Services's Insight

The 80/20 rule has several applications in finance, and not just in relation to value and revenue. According to one study of how financial advisors spend their time in an average week, many spend only 20% of their time meeting with clients, devoting the remaining 80% of their time to administrative tasks, management, and marketing. This is despite the fact that providing expertise to clients is the only true activity that produces revenue. In this article, one expert from the Forbes Advisory Council recommends financial advisors spend 80% of their time with clients, 15% of their time expanding their knowledge and expertise, and 5% of their time doing hiring and team building activities.

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Bad clients cost you time, money and opportunity. Here are three to get rid of...

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The 80/20 rule tells us that 80% of our revenue comes from the best 20% of our clients. Equally true: 20% of your clients will cause you 80% of the grief. When advisors prune their client lists to remove those that aren't the right fit for them, it frees up time and energy that can be used to acquire new clients and give more attention to their best clients. This article on INC explains how to identify three types of potentially problematic clients. In many cases, the clients who aren't a great fit for your practice also aren't terribly happy with you, so helping them find a new advisor can be a great win-win. And when the time comes, TAG can help you transition those clients to a new advisor with ease to show them the love they deserve.