According to Jeffrey Levine, the RIA Buckingham Wealth Partners firm’s chief planning officer, now is the ideal time for advisers to demonstrate their value to their clients, particularly those on a fixed income. He says one way to go about doing this is by implementing designs, building, and protecting strategies for all of its clients, regardless of their age or whether they are pre-retirees or retirees.
Levine noted that the idea “combines components of what’s commonly known as life planning with a data-driven approach to the technical elements of a financial plan and some novel approaches to conduct the monitoring/updating portion of an ongoing planning partnership.”
In a recent email interview, Levine answered some questions about what he and his firm are doing to assist clients in overcoming the numerous hurdles that investors will face in 2022.
How does Buckingham Wealth Partners plan on helping clients in dealing with market volatility this year?
We’ve explored a variety of approaches to assist consumers in dealing with the current market volatility. Communication and education are first and foremost, and we’ve accomplished this through various methods, including webinars, emails, and, when needed, direct one-on-one conversations.
When we build client portfolios, we think about the long term. And, throughout time, we “know” that there will be excellent markets and terrible markets, times of high volatility and periods of low volatility, etc.
We don’t usually look to make significant asset allocation modifications in response to the “news of the day” because we use an evidence-based strategy. Rather, we try to educate clients on the benefits of staying invested in a well-balanced portfolio.
Of course, this isn’t to suggest that there aren’t some efficient steps they can take to benefit from market volatility somehow. For example, we’ve executed trades in several of our clients’ taxable accounts to collect losses that will (hopefully) be used to offset potential capital gains. Other clients have also benefited from Roth conversions at cheaper valuations.
How is Buckingham Wealth assisting retired clients with inflation? What should other advisors do to help retiree clients?
Inflation is a huge concern for all clients, but those on fixed incomes are especially vulnerable. When working with retirees, making the correct “big picture” decisions is the first step in dealing with (possible) inflation. When to file for Social Security is one of those major decisions.
Everyone’s circumstances are unique, but we’re firm believers in the long-term advantages of deferring Social Security benefits wherever possible. Because Social Security benefits are subject to annual cost-of-living adjustments, postponing benefits is one of the finest tools for fighting inflation available to a (pre-) retiree.
The client’s asset allocation is another large picture factor. A fully-diversified portfolio can help offset the effects of a range of risks, including inflation. Of course, getting the more minor decisions “right” also helps.
How is Buckingham Wealth assisting clients with annuities?
We don’t use annuities very often in our planning at the moment. However, if appropriate, we will collaborate with third parties to develop a solution that will assist us in meeting the demands of individual clients.
We’re keeping an eye on several annuity-related issues. Finally, there appears to be a drive (finally) to produce more RIA-friendly [multi-year guaranteed annuities] and even income annuities.
What would you advise other advisors to undertake this year to assist pre-retiree clients? How will you assist retirees?
While there are some distinctions between retirees and pre-retirees, I’m not sure I’d divide our customer experience so sharply between the two groups.
Regardless of age, we seek to implement the Design | Build | Protect concept for our clients at a high level. That philosophy combines aspects of life planning with an evidence-based approach to financial planning.
Based on my position, I can devote most of my time to the technical aspects of financial planning. The major dilemma for most organizations is “how do you design a system that can give a consistent planning experience while taking into account each client’s unique planning demands?”
Our Wealth Planning Conversations are the answer to that question. Each Wealth Planning Conversation includes several key elements, such as our evidence-based default perspective on a particular strategy, issue, or topic, what we believe is the acceptable role for an advisor, a list of best practices, valuable resources, and even a conversation guide to assist advisors in determining how to best communicate these issues with clients.
It’s through all of these wealth planning conversations that advisors are empowered to provide clients with a consistent yet customizable experience.
Contact Information:
Email: [email protected]
Phone: 6232511574
Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
