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THE PROBLEM: Volatility is a threat to portfolio gains Investors feel comfortable when markets behave rationally and their portfolios trend upward with expected fluctuations along the way. However, the investment landscape changes dramatically as the economy starts to sputter and market volatility creates chaos and instability. Investment experience reminds us that most investors are not ready for turbulent times and as a result the portfolio losses are huge. For example, during 2008 there was almost $8 trillion of losses in household stock market wealth. Navigating financial markets during such an uncertain time requires skills, knowledge, and experience. Most household investors depend on their advisors for professional advice. This advice should...

Daniel Satchkov

23 Aug 2019

Technology So Good – You Can Taste It (if you cook it right)

Beyond Meat is the first publicly traded meat replacement company with one of the most successful large IPOs of 2019. Yon Perullo, CFA, FRM and Daniel Satchkov, CFA discuss the IPO, the product, competitors, and the impact companies like Beyond Meat could have on the environment and consumer habits.

Colin Ward

22 Aug 2019

Reserve plan sponsors for your marketing with Plan of the Week

RiXtrema’s Plan of the Week email allows you to reserve plan sponsors for 6 months and keep those sponsors from being distributed to other users. It is one more way we try to keep marketing options open for all our users. Just click on the blue button to reserve the plan. (Figure 1). The Plan of the Week emails are based on each user’s searching habits and are hand-picked to be ripe for your marketing. The email also gives you a competitive advantage by outlining the plan ratings, risk factors, and red flags. You can review performance metrics or simply scroll to the bottom of the email and click on...

Colin Ward

20 Aug 2019

Case Study: Here’s why your Risk Tolerance Questionnaire is failing you

Risk Tolerance is just half the picture Now is the time to reflect A questionnaire without Risk Capacity is a blunt tool! Risk Capacity + Risk Tolerance = Risk Profile How did your client investors react during the worst of the 2008 Financial Crisis? Did you stick to your investment plan or did you bend to the stressful situation? Predicting how investors will act during turbulent markets is the purpose of risk questionnaires but these methods are dated and unreliable. The Portfolio Crash Test Pro (PCT Pro) Risk Capacity measure is designed to improve upon the weaknesses of traditional risk questionnaires by giving financial advisors a picture of their investor client’s retirement situation and emotional response to...

Colin Ward

16 Aug 2019

Great Recession Deja Vu?: What to say to ignore the peanut gallery

What do you tell fearful clients when they call to suddenly change their investment strategy because of the trending bearish media soundbite? Maybe it is easy to dismiss when the source is dim. But, periodically a few distinguished voices emerge distinct from the usual chatter of bull, bear, push and pull monkeys shaking their crystal balls for peanuts and spectacle. Then, it can be a challenge to remain strong-willed, rational, disciplined, and tactically calm while peers and social media pages scream of falling skies and hidden treasure. When clients come to advisors with media madness, they need a competent, nerdy, macroeconomic wealth caretaker to tell them a calming economic narrative so they can sleep well. Leverage, Tariffs, and Brexit —...