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Episode 19 - Bob Veres 2017 Fee Study

How much are financial advisors charging their clients? How are most advisors calculating their fees? What constitutes a reasonable fee these days? Bob Veres put out a survey and study recently that tries to answer those questions.

To learn more about Bob Veres, here's his website. You can subscribe to his newsletter there, which will give you access to the study we discussed.

Bob Veres Inside Information: www.bobveres.com

Episode 18 - Software Quick Hitter - Two Programs We've Found Helpful

Roger is on vacation this week, but we want to provide a quick episode where we review two software programs that we've found to be helpful in our respective firms.

Remember on Reading Rainbow when kids would review books then finish with the catchphrase, "But don't take my word for it!"? Well this is the adult financial planning version of that. But without books. Or LeVar Burton. Or rainbows.

What we talked about in this episode:

We wanted to put that awesome Reading Rainbow sound after each review, but chose not to due to a combination of laziness and copyright concerns. Instead, we'll link to some guy's website who evidently has no such worries: Da Da Dah!

Episode 17 - John Gugle (Alpha Financial Advisors) Recaps FPA Retreat

On this week's episode, Roger and Ben are joined by John Gugle of Alpha Financial Advisors, who provides a recap of the 2017 FPA Retreat conference.

Rather than link to each speaker that John mentions, you can check out the agenda for the entire conference here. (Note the absence of the "bells and incense" portion of the first night from the conference agenda. Bait and switch!)

Next year's retreat is already scheduled for April 23-26, 2018, in Phoenix, AZ, so start marking up your calendar now.

Episode 16 - A Recap of the NAPFA National Spring Conference

Roger provides a recap of the 2017 NAPFA National Spring Conference in beautiful Bellevue, WA. We cover the keynote sessions, highlighted breakout sessions, and talk about the challenge of planning a conference when you try to balance new topics and voices against the draw of repeat speakers with high name recognition that get people in the door. (You can access the conference agenda by visiting the NAPFA website.)

Mark your calendars now for the 2017 NAPFA National Fall Conference in Orlando, FL, which will take place from October 18 - 21.

Episode 15 - A Conversation with Bill Bengen, Originator of the "4% Rule"

While attending the NAPFA National Conference in Bellevue, WA, Roger had the privilege of sitting down with Bill Bengen, one of the true financial planning legends. (Ben had the privilege of sitting comfortably in his home.)

Bengen's landmark 1994 paper in the Journal of Financial Planning introduced the world to the now-famous "4% Rule", which stated that based on historical returns for stocks and bonds, a retiree who withdrew no more than 4% (actually, 4.2%) of their initial portfolio and then adjusted future withdrawals by inflation had the greatest chance of not outliving his or her funds.

And just like Louis XV, after Bengen came the deluge of researchers - including Bengen himself - who revisited, and refined the concept of Safe Withdrawal Rates. And many a PhD was hooded...

In this episode, we touch on:

  • Bengen's motivation to research safe withdrawal rates
  • Data sources available at the time
  • Strengths and limitations of the 4% rule
  • The role that taxes and tax-deferred accounts play on Safe Withdrawal Rates
  • New research on the impact that including small cap stocks has on the 4% rule. (It's HUGE!)

Links to things we mention and/or are related

  • The original 4% rule paper
  • Wade Pfau's website (www.retirementresearcher.com) has an entire archive section dedicated to the 4% rule
  • Two new software packages (The Big Picture and Timeline) are built on the premise of helping advisors determine safe withdrawal rates for clients. Michael Kitces reviews both programs in a recent blog post.