This is a bittersweet moment.  We are recording this on April 26, and April 30 will be my final day at VettaFi, after which I will no longer be associated with the Advisor Perspectives publication. This will be the final episode of the nearly 500 that I have hosted for the Gaining Perspective podcast.

There is no better topic to discuss in this podcast than the state of journalism in the advisory profession.  “The profession of journalism exists, at its best, to inform and occasionally correct the record, to right a wrong, especially an awful thing that is wrong.” Those are not my words, but those of my guest today, who stands at the pinnacle of the journalism profession for advisors.

Here are some links on this topic:

• Bob Veres’ Inside Information service - https://bobveres.com/ 
• Bob Huebscher’s farewell article - https://www.advisorperspectives.com/articles/2024/04/23/farewell-robert-huebscher?topic=global-markets

Tax-management strategies are crucial for clients, and they need today’s most sophisticated tools to relieve the tax burden for their clients. In this episode, my guest will dive into those strategies, such as tax-loss harvesting, and will explain how tax technology plays a significant role in driving value through smart, automated processes that find the right investment strategies for every client. We’ll also discuss why it’s important to deliver tax-loss harvesting with a purpose as well as some other hot topics affecting the advisory profession.

Here are some links to learn more about Hiren and 55ip:

• 55ip – www.55-ip.com
• Tax Harvest Indicator (as of Dec. 31, 2023) - https://info.55-ip.com/hubfs/Marketing%20Library/55ip_TaxHarvestIndicatorQ42023.pdf

DISCLOSURE

55ip is the marketing name used by 55 Institutional Partners, LLC, an investment technology developer, and for investment advisory services provided by 55I, LLC, an SEC-registered investment adviser. 55ip is part of J.P. Morgan Asset Management, the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.

Telephone calls and electronic communications may be monitored and/or recorded. Personal data will be collected, stored and processed by 55ip in accordance with our privacy policies at https://www.55-ip.com/email-disclaimer/.

If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.

The impact of a tax-loss harvesting strategy depends upon a variety of conditions, including the actual gains and losses incurred on holdings and future tax rates. The results shown in these materials are for illustrative purposes only and do not represent actual investment decisions.

The tax-loss harvesting service is available for an additional advisory fee and the results shown represent the net effect of the advisory fees but may not consider the impact of fees charged by others, including transaction costs or other brokerage fees. The information contained herein is subject to change without notice, is not complete and does not contain certain material information about the investment strategy, including additional important disclosures and risk factors associated with such investment and information about fees, trading costs and taxes.

My guest today believes that the underperformance of the Magnificent 7 is creating opportunities in small-cap equities as investors look to loosen their portfolio concentration in large-cap names. In addition, increased small-cap M&A activity, better credit market conditions, and a lower cost of capital, are creating fertile ground for small-cap companies.

Here are some links to learn more about Rayna and Polen Capital:

• www. Polencapital.com

Most platforms for alternative investments are just concerned with getting advisors access to those investments. But advisors need education on the role alternatives can play in asset allocation and how creating portfolios that complement traditional assets drive business growth. My guest today will discuss:

• How alternative investments benefit an RIA’s client’s portfolio and grow their business.
• Why access to alternatives is a given, and the focus should be on portfolio construction of alternatives with traditional assets.
• The unique demand among RIAs for different alternative investments, including private credit and infrastructure.
• Why semi-liquid alternatives funds may not be the best option for RIAs versus institutional offerings.

Here is a link to learn more about Alan’s work and Crystal Capital Partners:

• Crystal Capital Partners

The advisory profession is sitting on the precipice of major cyber-related regulation set to impact advisors of all sizes. But RIAs are not cybersecurity experts; many are not prepared for the requirements expected to be released by the SEC, and it could negatively impact their businesses. The cost of a cyber incident and reputational damage is further amplified given the deeply personal nature of an advisor-client relationship, which is rooted in trust. My guests today will share advisors’ top concerns regarding cybersecurity, what cyber regulation looks like in 2024, and how advisors can calm client fears about the protection of their data.

Here are some links to learn more about Gabe, Mike and SEI:

• Overview of SEI's cybersecurity offerings
• Overview of SEI's offerings for RIAs
• Gabe Garcia and Shauna Mace on Emerging Trends in the RIA Profession (Nov 2022)

Private equity and venture capital funds have consistently outperformed public markets. But beyond those funds, there is a more specialized approach for investors to capitalize on the private markets: secondary transactions, often known as “secondaries.” My guest today, Andrew Krei, will navigate through the complexities of this dynamic sector, highlighting its potential rewards for investors seeking alternative paths for capital growth. He will also discuss the trends and advantages that the secondaries market offers over traditional PE or VC investments. 

Show Notes

• https://barrettupton.com/
• https://www.linkedin.com/company/barrett-upton-capital-partners/

How can financial advisors navigate the changing custody landscape and keep up with the ongoing demands of their clients? My guest will discuss the keys to advisor success, including how technology is impacting the profession, advisors' biggest pain points, unique offerings that firms should consider for their clients, and how to find the right custodian who will help during times of transition and periods of uncertainty. This episode is for any advisor looking to differentiate themselves in the market, considering a new custodian, or going multi-custodial. 

Here are some links to learn more about Mike and Axos Advisor Services:

• https://www.axosadvisorservices.com/
• https://www.linkedin.com/in/michael-watson-33222a1/

Most clients have no idea what retirement failure means to them and how a given failure rate should influence their planning. My guests today will present a planning framework that improves existing models by dynamically adjusting for market performance and longevity.

When saving for retirement it’s common for advisors to evaluate progress toward a savings goal and recommend course corrections to stay on track. Making course corrections after retirement means that the retiree must either spend less if investment returns are low or be able to spend more if markets rise.

Clients need to understand how investment and longevity risk will affect their lifestyle as they make these adjustments to avoid running out of savings. The best way to understand how these risks might affect their lifestyle is through a visualization of spending paths. Visualizations are a powerful and accurate way to understand how spending more early in retirement, taking greater investment risk, and using an annuity change the course of possible lifestyle paths.

Here are some links to learn more about Tamiko, Michael and IncomePath:

• www.incomepath.com
• https://www.linkedin.com/company/incomepath
• Giving Retirees the Freedom to Spend

Amid higher interest rates and consequently higher yields, investors have piled into cash. My guest today will explain why it’s time to make a move. His position is that cash should be an asset to provide for short-term (less than 12 months) liquidity needs. Beyond that, investors should consider an appropriately diversified portfolio to achieve their financial goals. While short-term performance may work in investors’ favor, he will argue that over the long term, the benefits of being invested outweigh the potential short-term benefits of sitting in cash.

Here are some links to learn more about Seth and Janus Henderson:

• Sitting in cash? What’s your next move? - Janus Henderson Investors
• Late to the party: Are the best of money market returns behind us? - Janus Henderson Investors

Change is happening all around us at an accelerating rate.  To exploit that change, rather than be exploited by it, professional advisors need power and capability that is protected by true independence.  My guest today is a pioneer of the business model that was created to deliver that combination, what is now called outsourced chief investment officer (OCIO). 

Jon Hirtle will explain why he is just as passionate about power, capability and true independence as he was when he founded an industry and a firm over 35 years ago.  He has been an active investor and successful entrepreneur for 40 years and I look forward to discussing the lessons he has learned as well as the trends he finds compelling.

How do good RIAs become great ones?  How do $1 billion-dollar practices become $20 billion-dollar practices?  Today, I talk with someone who has done both.  

Here are some links to learn more about Jon and Hirtle Callaghan:

• Jon’s emai: [email protected] 
• https://www.hirtlecallaghan.com/
• https://www.hirtlecallaghan.com/blog/