Retirement Strategies for HNW Clients in a Low Yield Environment
In today’s low-yield environment, the traditional 60/40 retirement strategy no longer works.
Charging a 1% AUM fee on low-yielding bonds provides clients with less after-tax, after-advisory fee returns for owning these assets than the advisor actually makes for simply managing them!
In order to attract and retain HNW clients in an era of low bond yields, advisors will need more tax-efficient strategies to make up for the loss of yield in the bond markets.
In this video we show financial advisors how to implement better after-tax, after-advisory fee solutions in order to attract and retain HNW clients.
- 0:00 – Why traditional 60/40 retirement strategies don’t work in a low-yield environment
- 10:36 – Overview of better retirement solutions in a low-yield environment
- 14:52 – The benefits of asset location
- 21:14 – The importance of tax-deferral
- 26:17 – Why is interest rate risk a problem in a low-yield environment?
- 31:49 – How can no-commission annuities improve after-tax bond returns and protect against interest rate risk?
- 45:02 – How can using no-commission annuities help RIAs grow their business by providing greater after-tax value than their competitors?
- 47:46 – How can guaranteed lifetime income strategies provide a greater chance of healthy clients meeting their retirement goals?
- 50:40 – What should I look for when considering alternative asset allocations?
- 53:52 – What are life settlements and how can they provide better portfolio diversification and higher returns?
- 01:02:02 – Private Placement Life Insurance: Creating tax-free retirement income for ultra-HNW clients
- 01:11:00 – How to use life insurance and annuities as financial planning tools
Key topics covered:
- Importance of Asset Location
- Why HNW clients need to focus on deferring bond gains until they are in a lower tax bracket in retirement
- Why is it important to reduce taxable gains on bond portfolios by charging advisory fee on a pre-tax basis?
- How can no-commission annuities provide access to higher yielding long-term bonds without interest rate risk
- How can guaranteed lifetime income strategies provide higher yields for HNW clients?
- How can uncorrelated assets like life settlements provide for both higher returns and greater portfolio diversification than low-yielding bonds?
- How do I use private placement life insurance to create my own alternative investment strategies for my clients and make their returns tax-free?
Whitepapers mentioned in the video:
- Investing in Long-Term Bonds without Interest Rate Risk: The No-Commission Annuity Solution to Improving After-Tax, After-Advisory Fee Bond Returns
- Investing in Life Settlements: Providing Investors Access to Exclusive Uncorrelated Returns
- Increasing After-Tax, After-Advisory Fee Retirement Income for HNW Clients: The private placement life insurance solution many fee-only RIAs and family offices are missing