Advisors4Advisors

NASAA Practice/Product IAR CE Course ID C27630 

This class provides a data-driven approach to guiding retirees through investment decisions using historical market performance. 

This is not the first time fear shook confidence in financial economic conditions. This class examines  performance data of core asset classes since the advent of the modern stock market in 1926, and stock and bond performance over 73 rolling periods. It helps  illustrate to clients the swings in risk and returns experienced by diversified investors, through historic times of uncertainty. 

The class emphasizes the effectiveness of structured withdrawal strategies, a crucial concept for advisors to grasp.     

The class examines the impact of different asset allocations -- 40/60, 60/40, and 80/20 -- on long-term returns, sequence of returns risk, and portfolio sustainability. Participants learn how persistence and emotional durability influence investment success, why controlling costs is critical, and how to stress-test future market conditions for clients. 

By the end of this class, you are equipped with evidence-based strategies to help retirees maintain financial security and confidence in their portfolios, and an understanding of: 

• Historical data provides confidence in long-term investing. Studying past market performance helps reassure clients amid volatility.
• A 40/60 portfolio has never had a negative 10-year return. Over nearly 100 years, this allocation has remained consistently positive.
• Different asset allocations follow similar return patterns. The risk level changes, but the market's general movement is the same.
• Investor persistence is more important than asset allocation. Emotional durability is a key determinant of investment success.
• A 60/40 portfolio outperforms a 40/60 allocation over time. It provides about 120 basis points more in annual returns.
• Sequence of returns risk is critical in retirement. The order of returns impacts portfolio sustainability during withdrawals.
• A 60/40 portfolio is larger at age 98 in most cases.  Historical data shows 71%-100% success depending on withdrawal rates.
• Retirement portfolios rarely deplete with proper withdrawals.  No historical cases of depletion with RMD or 4%-5% withdrawals.
• Lower investment costs improve long-term portfolio success.  Reducing fees helps maintain and grow retirement savings.
• Future market conditions can be stress-tested with adjustments.  Adjusting return assumptions helps model different financial scenarios.

Craig L. Israelsen, Ph.D., has been a regular contributor to Advisors4Advisors since April 2009. Prof. Israelsen has taught about family financial management at universities and is currently Executive-in-Residence in the Financial Planning Program at Utah Valley University. He teaches classes toward earning a CFA charter. He's a regular contributor to AAII Journal.  Craig provides a system to manage low-expense portfolios and educate clients on A4A. 

Who Should Attend:
IA Reps, CFPs, CPA financial planners, CPA/PFSs, CIMAs, CLUs, ChFCs,, CFAs, and other professionals who seek a deeper understanding of diversified portfolio strategies.

Cost:
Free to Advisors4Advisors members ($60/Qtr).

1 Credit:
Prerequisites: None
Advanced Preparation: None
Finance field of study
Approved for Practices & Products IAR CE 
Course Level: Update
Course Delivery Method: On-demand webinar replay

Program Policies:
Advisors4Advisors is approved as a provider of IAR CE by the North American Securities Administrators Association. 
Advisors4Advisors is approved by the National Association of State Boards of Accountancy (NASBA) as a Quality Assurance Service (QAS) Self-Study Provider, enabling CPA financial planners to earn CPE credit on-demand via webinars on A4A, as well as on live webinars. 

State boards of accountancy retain final authority on course acceptance. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors at www.nasbaregistry.org.

Advisors4Advisors is approved as a CE sponsor by CFP Board, and by Investments & Wealth Institute, enabling credit for CFP®, CIMA®, and CPWA® professionals. 

For information regarding administrative policies, such as refunds, cancellations and complaints, mail [email protected].