“We think the concern is well-founded, and that's not based on a prediction that inflation will be higher in the future, but we find that the impact of inflation is often underestimated in the planning process. Small numbers have a big impact over longer-term horizons.”
“The REIT market is liquid, there are low transaction costs in terms of getting in and out, and you avoid the maintenance headaches of ownership (while maintaining exposure to an asset class) that could perform well in theory should inflation go up.”
“It's the emotional vs. the rational or logical. In many instances, people view these balances as found money, but there are few instances when cashing out makes sense.”
“Congress can address that dilemma, or growing probability of AMT exposure, by passing legislation that retroactively reduces that bite, and it would probably be as simple as maintaining or increasing the exemption amount.”
“Rebalancing forces the investor to do what is typically emotionally uncomfortable but financially productive. Emotional biases tempt us to chase performance. An advisor can bring an objective third party perspective that's more rational.”
“When we speak with leading advisors, those that really take their practice seriously, the really good ones do have client advisory boards. They are willing to spend the time and effort to embrace other methods or practices.”
“The first question I ask an advisor is, 'What are you saying now when someone asks you what you do?' Oftentimes the advisor says: 'I am a vice president with x brokerage.' This is too generic, and it's not client-centric.”
