2016 1st Qtr Issue - No Portfolio Is an Island, Tax Efficient Drawdowns, Retiree Housing

2016 1st Qtr issue – InFRE’s free newsletter

InFRE's 2016 1st Qtr Issue of Retirement Insight and Trends

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The quarterly newsletter from the International Foundation for Retirement Education helps committed professionals with the practical application of new concepts in the field of retirement readiness, counseling, planning and income management.

In this retirement-specific newsletter, planners will learn:

  1. “No Portfolio is an Island” by David Blanchett, CFA, CFP®, AIFA®: Different types of risks to consider when building portfolios that are more efficient for clients when viewed from a total wealth perspective; Understand why there is no one efficient portfolio for all investors; Frameworks for incorporating different risks and preferences into the portfolio optimization process.
  2. “Tax Efficient Draw-Downs in Retirement” by Stephen Horan, PhD, CFA, CIPM: How the government’s interest in different taxable structures affects an investor’s risk-return profile; What the economics of different retirement tax structures imply for pre-asset allocation and asset location; How to use the available tax structures to keep taxes low throughout the retirement drawdown phase that challenges conventional wisdom.
  3. “Housing for Retirees: Buy, Sell or Hold?” by Michael Falk, CFA, CRC®: How retiring without a mortgage is very smart, but accelerating the payoff to accomplish such a goal may not be so smart. How “livable” (really) and what is the cost of your home long-term? Your options: Reverse Mortgage, HECM line of credit, downsize, or sell.

The articles below comprise the 2016 1st Qtr Issue of Retirement Insight and Trends. Click on the links below to read each article online separately, or click here to view and print the issue in its entirety.


Welcome to InFRE’s April, 2016 Issue of Retirement Insight and Trends

on APRIL 30, 2016

Retirement InSight and Trends is the quarterly newsletter for the International Foundation for Retirement Education’s Certified Retirement Counselors® (CRC®s) to help retirement professionals with the practical application of new retirement readiness, counseling, planning and income management concepts for the mid-market. Find out more about the CRC® and […] Continue Reading →


April, 2016 InFRE Update: The 6th Editions of the CRC® Study Guides are Coming Soon!

on APRIL 30, 2016

Within the next few weeks, InFRE will be releasing revised versions of the CRC® Study Guides (the 6th editions), practice exams, and elearning review modules. The updated study guides will be available by the second half of May. The online practice exams have been substantially rewritten as well. If you purchased prior versions of the study guides and still need to take the CRC® comprehensive examination, you will soon receive an email with a PDF study guide supplement that includes the key additions to the new materials, plus a link to the new practice exams. […] Continue Reading →


No Portfolio is an Island

on APRIL 30, 2016

By David Blanchett, CFA, CFP®, AIFA® – Head of Retirement Research, Morningstar

Advisors demonstrate the quality of their allocations in different ways. A common way is to demonstrate that their portfolio is in or around the efficient frontier, while maybe the existing portfolio or a competitor’s portfolio isn’t. In some ways, this paints a simplistic picture and an incomplete picture of how good a portfolio can truly be.
In reality, everyone is different. Everyone has different goals, objectives, assets and liabilities. What that means is there really is no one efficient frontier for everyone. One thing that is really important, though, throughout all of this, is the safety of diversification. The only guaranteed alpha that you can create in investing is diversification. That’s why Harry Markowitz won the Nobel Prize for his work for his work back in the 1950s. Diversification is a free lunch. Diversification is very valuable. […] Continue Reading →


Tax Efficient Drawdowns in Retirement

on APRIL 30, 2016

By Stephen Horan, PhD, CFA, CIPM, Managing Director, Credentialing, CFA Institute

As more investors enter retirement, our focus as advisers shifts from the accumulation phase to the distribution phase. It’s a complicated area. We’ve seen a lot of research, particularly around issues of sustainable retirement withdrawals, and other optimization techniques.
So much about investing, saving, and distribution is uncertain. The outcomes tend to be based on the vagaries of the financial markets. The advantage is that much of what we’ll cover here is more predictable. It’s just more consistent ways in which we might be able to add value for our clients. We‘ll even highlight how we can take advantage of uncertainty in the capital markets. […] Continue Reading →


Housing for Retirees: Buy, Sell or Hold?

on APRIL 30, 2016

By Michael Falk, CFA, CRC®, Focus Financial Consulting

We know that historically in our economy and many economies, home ownership has been promoted based on thoughts about how it will contribute to economic growth and, more so, population stability because of how it gets people maybe to behave a little bit better with their neighbors and in their neighborhood.
Everybody talks about the gains they make from real estate over time. Well, that’s cyclical; based upon supply and demand – population booms, not enough housing built, people moving to different desired locations. […] Continue Reading →


Earn 1 free CRC Continuing Education (CE) credit for the April, 2016 Issue of InFRE’s Retirement InSight and Trends

on APRIL 30, 2016

This issue of the April, 2016 issue of Retirement InSight and Trends is no longer eligible for CE credit.