RIIA® News – Retirement Income Journal asks “What Kind of Advisor Are You?”

In the July 27 issue of the Retirement Income Journal (RIJ), editor Kerry Pechter’s headline asks “Curve, Triangle, or Rectangle: What Kind of Advisor Are You?”

In this first of two articles, he refers to the recent paper authored by Patrick Collins, Schultz Collins, and François Gadenne, RIIA Executive Director, and presented by them at RIIA’s 2017 Summer Conference. (The paper, “The Shapes of Retirement Planning: Are You a Curve, a Triangle, or a Rectangle?”, is available to RIIA members in the Summer Conference workbook in the Members Area, or in IMCA’s Investments & Wealth Monitor.

Pechter summarizes the geometric elements of advisor approaches to retirement planning: “Curve” – Modern Portfolio Theory and the efficient frontier, “Triangle” – Behavioral Finance, Goal-based planning, “Rectangle” – Using the Household Balance SheetSM (HHBSSM) and Procedural Prudence mapSM to consider all assets and liabilities of the client.

“Advisors who follow the (Procedural Prudence) map can’t help but serve the best interests of the client and thereby comply with the spirit and the letter of the DOL fiduciary rule, RIIA believes. The RIIA process is fundamentally client-centric,” Pechter writes.

In the August 2nd issue of RIJ, Pechter talks further about the contradictory prescriptions in financial planning and quotes Gadenne, “Smart advisors will match the right techniques to the right client, or specialize in certain techniques and certain types of clients, Gadenne believes.”

In addition, Pechter recognizes Mike Lonier, Lonier Financial Advisory, in the August 10th RIJ issue for solving the ‘Andrew and Laura’s’ retirement income puzzle. A certified Retirement Management Analyst® (a “Rectangle”) Lonier first builds a safe income floor and then invests for upside with a combination of products.

Read all of the articles on the RIJ website (full subscribers).

Learn more about RIIA’s Retirement Management Analyst (RMA®) designation on our website, www.riia-usa.org, or contact François Gadenne at fg@riia-usa.org. The next RMA class begins September 11th and registration is open!

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