Michael Kitces is one of the world’s leading experts in financial services but is also a trusted authority in retirement planning research, and today he joins us for a brilliant conversation that covers both topics. Michael is the Head of Planning Strategy at Buckingham Wealth Partners, Co-Founder of XY Planning Network, AdvicePay, and fpPathfinder, and also hosts the much-admired Financial Advisor Success podcast. In the first section of the show, we shoot our questions about retirement planning Michael’s way, exploring sequence of returns risk and the implications it presents for spending and portfolio management through retirement. Michael weighs in on three approaches to variable spending, why people can do what they love and still retire well, and his research on the ‘rising equity glidepath’. He also speaks about why it’s normal to start saving after you hit forty, and why withdrawal policy statements can help you have a better idea of when your portfolio is in the red. This leads us into the financial services segment of the show and we start out hearing Michael compare the assets under management model to the fee for service one, and how XY Planning helps those who can’t afford the first by implementing the second. From there, we dive deeper into the limits of more affordable AUM models, Michael’s thoughts on which draw on theories of human nature and also function as an advisor underwriting how-to for investors. Toward the end of the show, Michael does an amazing job of contextualizing the merge of the brokerage and advisory sides of the financial system and what this means for investors. For all this and a closing exchange about the incredible work Michael is doing to lift standards for the industry through his podcast and more, be sure to tune in!

00:00 Intro
00:15 Introducing Michael Kitces
03:25 Market fluctuation and how early retirement
17:55 Lifestyle and banking habits
20:57 Inverting the conventional retirement portfolio
27:35 How withdrawal policy statements help you know when your portfolio is in the red.
47:20 Start saving in your 40s
48:43 AUM vs fee for service financial advisor models
59:43 How to vet a financial advisor
1:12:02 Michael’s definition of success


Links From Today’s Episode:

Michael Kitces on LinkedIn —   / michaelkitces  
Financial Advisor Success — https://www.kitces.com/podcast/
Tessa Felix on Financial Advisor Success Ep 161 — https://www.kitces.com/blog/tessa-fel...
‘Retirement Risk, Rising Equity Glidepaths, and Valuation-Based Asset Allocation’ — https://papers.ssrn.com/sol3/papers.c...
‘Life-Cycle Earnings Curves and Safe Savings Rates’ — https://papers.ssrn.com/sol3/papers.c...
Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/t....
Rational Reminder Website — https://rationalreminder.ca/podcast/112

The Rational Reminder is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The funds and portfolios discussed are examples only and may not be appropriate for your individual circumstances.