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- Опубликовано: 19 май 2024
- Michael Kitces is one of the world’s leading experts in financial services but is also a trusted authority in retirement planning research, and today he joins us for a brilliant conversation that covers both topics. Michael is the Head of Planning Strategy at Buckingham Wealth Partners, Co-Founder of XY Planning Network, AdvicePay, and fpPathfinder, and also hosts the much-admired Financial Advisor Success podcast. In the first section of the show, we shoot our questions about retirement planning Michael’s way, exploring sequence of returns risk and the implications it presents for spending and portfolio management through retirement. Michael weighs in on three approaches to variable spending, why people can do what they love and still retire well, and his research on the ‘rising equity glidepath’. He also speaks about why it’s normal to start saving after you hit forty, and why withdrawal policy statements can help you have a better idea of when your portfolio is in the red. This leads us into the financial services segment of the show and we start out hearing Michael compare the assets under management model to the fee for service one, and how XY Planning helps those who can’t afford the first by implementing the second. From there, we dive deeper into the limits of more affordable AUM models, Michael’s thoughts on which draw on theories of human nature and also function as an advisor underwriting how-to for investors. Toward the end of the show, Michael does an amazing job of contextualizing the merge of the brokerage and advisory sides of the financial system and what this means for investors. For all this and a closing exchange about the incredible work Michael is doing to lift standards for the industry through his podcast and more, be sure to tune in!
00:00 Intro
00:15 Introducing Michael Kitces
03:25 Market fluctuation and how early retirement
17:55 Lifestyle and banking habits
20:57 Inverting the conventional retirement portfolio
27:35 How withdrawal policy statements help you know when your portfolio is in the red.
47:20 Start saving in your 40s
48:43 AUM vs fee for service financial advisor models
59:43 How to vet a financial advisor
1:12:02 Michael’s definition of success
Links From Today’s Episode:
Michael Kitces on LinkedIn - / michaelkitces
Financial Advisor Success - www.kitces.com/podcast/
Tessa Felix on Financial Advisor Success Ep 161 - www.kitces.com/blog/tessa-fel...
‘Retirement Risk, Rising Equity Glidepaths, and Valuation-Based Asset Allocation’ - papers.ssrn.com/sol3/papers.c...
‘Life-Cycle Earnings Curves and Safe Savings Rates’ - papers.ssrn.com/sol3/papers.c...
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t....
Rational Reminder Website - rationalreminder.ca/podcast/112
The Rational Reminder is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The funds and portfolios discussed are examples only and may not be appropriate for your individual circumstances. 
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Fabulous interview. One of my favourite parts is Kitces explanation of how retirement is built up to be this swan dive all or nothing, all or nothing life changing event. So well explained. As he said, for a lot of people, retirement is not a natural state of being -- you need a plan of what you are going to transition into.
The butcher vs nutritionist part was perfect. I feel like a lot of people in Canada think the people they meet with at a bank branch are the nutritionists when they're just butcher's.
The part about advisers having minimums stuck with me. I know PWL has a minimum. Which I understand. It just limits us who want to work with you until later in life. There's lots of advice we could use at younger ages that would help us grow much more than we would alone. Especially with value cycles being so long by the time we get enough to work with you it'll only be for a decade or two before we retire. Missing out on the crucial younger years when we have time on our side.
Well, just save & invest as much as you can in S&P500 index fund when you are young. Read some good person financial books like Phycology of Money & The Real Retirement. You will be totally fine.
The bond tent (rising equity glide path) used to mitigate sequence risk has been in practice for over 30 years .in practice to shelter 60 to 70% of portfolio to spend down first in the early part of retirement in case of a severe bear market is a classic bucket strategy.
Such a great interview :)
Wow. As an advisor myself, this was good stuff on the WPS vs IPS.
Not to shame limited savings until 40s. But numbers don’t lie. The time for compounding is reduced. For people literally start saving at 50, they’re late for the game especially now life span is surprisingly long. Not to say it’s meaningless to start late, it’s still good. It’s more the spending behaviours need many modifications, especially if the lack of savings is due to frivolous or careless spending, it’s important to make changes early on.
Layperson here, surprised how interesting!
Really good interview guys, thanks!
Michael had some interesting thoughts on how people spend their time in retirement (I didn't agree with all of them, e.g., at the 40 min. mark). Worth a read is Ernie Zelinski's 'How to Retire Happy, Wild and Free- Retirement Advice You Won't Get From Your Financial Advisor'. Preparing mentally for how we will spend our time in retirement is a worthwhile exercise.
How do you put yourself INSIDE the whiteboard?
Why screw around with bond tents when you could just do coastFIRE and work part time (1/4, 1/3 of the previous hours) in your same high earning field (if you can) during the first few years, especially if things look grim?
I think because it might be that the concern is what happens s for the first decade, and that may not be feasible for all retirees. But I think it's a valid possible solution.