Education Library
36 slides · click Preview to see the full slide · add to build a presentation
The Accumulator
Building wealth during the growth years
Investors in peak earning years with a long time horizon. Can tolerate short-term volatility in exchange for long-term growth.
Key Takeaways
- ·Time is your greatest asset — market downturns are buying opportunities
- ·Dollar-cost averaging smooths entry price over time
- ·Tax-advantaged accounts (401k, Roth IRA) should be maximized first
The Retiree
Protecting income in the distribution phase
Investors drawing down assets for income. Sequence-of-returns risk is the primary concern. Capital preservation and income stability take priority.
Key Takeaways
- ·Sequence risk: a bad market in year 1–3 of retirement is more damaging than at year 15
- ·The 4% rule has a 95%+ success rate over 30 years — but a cash buffer is insurance
- ·Bonds provide ballast — short-duration ladders reduce rate sensitivity
The Business Owner
Concentrated wealth and liquidity planning
Owners whose net worth is concentrated in their business. The business is both asset and income source — liquidity events and succession are central planning priorities.
Key Takeaways
- ·Concentration risk: your business and your job are the same asset — diversify early
- ·Qualified Opportunity Zones and installment sales can defer large taxable events
- ·Key-person insurance protects business value and should be reviewed annually
Sequence-of-Returns Risk
Retirement income primer
Why the order of returns matters more than the average return — and how a bad early retirement can destroy an otherwise sound plan.
Key Takeaways
- ·The same average return produces wildly different outcomes depending on the sequence
- ·A 30% drop in year 1 of retirement is far more damaging than in year 15
- ·Cash buffers and bond ladders are the primary defenses against sequence risk
The Inheritor
Managing sudden wealth responsibly
Clients who received a significant inheritance or windfall. Common mistakes include moving too fast, over-concentrating, or letting guilt drive poor decisions.
Key Takeaways
- ·The first rule of inherited wealth: do nothing for 90 days
- ·Inherited IRAs have a 10-year depletion rule — timing withdrawals to manage tax brackets is critical
- ·A sudden wealth event is also a grief event — financial decisions should wait until emotional stability returns
The Newly Single Client
Financial reset after a major life transition
Clients recently widowed or divorced who are taking financial control for the first time. A mix of urgent decisions and long-term restructuring is needed.
Key Takeaways
- ·Update all beneficiary designations immediately — they override any will
- ·Social Security survivor or divorced-spouse benefits have filing deadlines
- ·New budget reality: one income, same fixed costs — the plan needs to be rebuilt from scratch
The Pre-Retiree
The decade before retirement is the most critical
Clients within 10 years of retirement. The transition from accumulation to distribution requires a complete portfolio rethink — the stakes are highest here.
Key Takeaways
- ·The final decade determines retirement readiness more than any prior decade
- ·Roth conversions and tax bracket management are most impactful now, before RMDs force income
- ·Healthcare is the single largest underestimated retirement expense — plan for $300K+ lifetime
How a 60/40 Portfolio Behaves
Asset class primer
A deep dive into the classic balanced portfolio — how stocks and bonds interact, where it works, and where it can disappoint.
Key Takeaways
- ·Stocks and bonds are negatively correlated in most environments — bonds cushion equity drawdowns
- ·2022 was a rare exception: both fell simultaneously as the Fed raised rates aggressively
- ·Over 20-year periods, 60/40 has never produced a negative real return
Why We Hold International
Asset class primer
International equity has underperformed the US for 15 years. Here's the case for maintaining global diversification anyway.
Key Takeaways
- ·Mean reversion: US vs. international outperformance runs in 10–15 year cycles
- ·International exposure accesses sectors underrepresented in the US (energy, financials, industrials)
- ·Currency diversification reduces home-country bias and USD concentration
Alternatives: What They Do and Don't Do
Asset class primer
Private equity, hedge funds, real assets, and CTAs — their role in a diversified portfolio, realistic return expectations, and the liquidity trade-off.
Key Takeaways
- ·Alternatives add diversification, not necessarily higher returns
- ·Illiquidity premium is real but requires a 7–10 year lockup — not appropriate for near-term needs
- ·Fees matter: 2-and-20 costs 3–4% in net returns annually at average market returns
How Bonds Work
Fixed income primer
Bonds confuse even experienced investors. This slide demystifies price, yield, duration, and credit risk in plain language your clients will actually retain.
Key Takeaways
- ·Bond prices move opposite to interest rates — when rates rise, existing bond prices fall
- ·Duration measures interest rate sensitivity: a 7-year duration bond falls ~7% per 1% rate rise
- ·Credit spread = the extra yield you earn for taking default risk over Treasuries
Real Estate Through REITs
Asset class primer
How publicly traded REITs give clients real estate exposure without landlord headaches — and how they differ from owning property directly.
Key Takeaways
- ·REITs must distribute 90%+ of taxable income — built-in income stream
- ·Publicly traded REITs are highly liquid unlike direct real estate
- ·Rate-sensitive: REITs often fall when rates rise (like bonds) but recover as income grows
Gold & Commodities in a Portfolio
Asset class primer
The role of hard assets as an inflation hedge, crisis refuge, and portfolio diversifier — and why the allocation size matters as much as the decision to own them.
Key Takeaways
- ·Gold has a near-zero correlation to equities over long periods — pure diversification
- ·Commodities are a real inflation hedge; stocks and bonds are not in the short term
- ·Position size: 5–10% is meaningful diversification; more than 15% becomes a speculative bet
Factor Investing Explained
Asset class primer
Value, size, momentum, quality, and low volatility — the systematic risk factors that have historically driven excess returns and how to access them cheaply.
Key Takeaways
- ·Factor premiums are real but cyclical — value underperformed for a decade before 2022
- ·Smart beta ETFs give factor exposure at low cost (often 0.10–0.25% vs. 1%+ for active)
- ·Combining uncorrelated factors (e.g., value + momentum) reduces drawdowns
Tax-Loss Harvesting Explained
Tax strategy primer
How to turn paper losses into real tax savings — without changing your long-term asset allocation.
Key Takeaways
- ·Selling a losing position to realize the loss, then buying a similar (not identical) replacement
- ·The loss offsets gains dollar-for-dollar. Excess losses carry forward indefinitely.
- ·Wash-sale rule: no buying back the same security for 30 days before or after
The Roth Conversion Strategy
Tax strategy primer
Converting pre-tax IRA money to Roth — paying tax now to avoid larger tax bills later, especially if future rates are higher.
Key Takeaways
- ·Converts ordinary income tax liability today into tax-free growth forever
- ·Best done in low-income years or when filling lower brackets
- ·RMDs don't apply to Roth IRAs — reduces forced income in retirement
Asset Location: Where to Hold What
Tax strategy primer
Putting the right investments in the right account types — tax-deferred, Roth, or taxable — to minimize lifetime tax drag without changing the overall allocation.
Key Takeaways
- ·Tax-deferred (IRA/401k): best for bonds and REITs that generate ordinary income
- ·Roth: best for highest-growth assets — gains compound and distribute tax-free
- ·Taxable: best for tax-efficient equity (index funds, ETFs) and municipal bonds
Charitable Giving: DAF, QCD & Direct Stock
Tax strategy primer
Three giving strategies that maximize impact while minimizing taxes — Donor-Advised Funds, Qualified Charitable Distributions, and donating appreciated stock.
Key Takeaways
- ·Donating appreciated stock avoids capital gains AND gets a full deduction — double benefit
- ·QCDs satisfy RMDs without adding to taxable income — only available at age 70½+
- ·DAF: bunch deductions into one year for itemizing, then grant to charities over time
Required Minimum Distributions
Tax strategy primer
The IRS forces withdrawals from tax-deferred accounts starting at age 73. Failing to plan turns RMDs into your largest annual tax bill.
Key Takeaways
- ·RMDs begin at age 73 (SECURE 2.0); the amount is based on the prior year-end balance divided by an IRS life expectancy factor
- ·Missed RMDs carry a 25% penalty on the amount not taken
- ·RMDs stack on top of Social Security and other income — often pushing retirees into higher brackets
Capital Gains & the Net Investment Income Tax
Tax strategy primer
Long-term capital gains are taxed preferentially — but add them to ordinary income and you can trigger the NIIT surcharge and bracket creep. Timing matters.
Key Takeaways
- ·Long-term gains are taxed at 0%, 15%, or 20% depending on total income
- ·NIIT adds 3.8% surcharge on investment income above $200K (single) / $250K (married)
- ·Harvesting gains in low-income years locks in the 0% or 15% rate forever
What a Revocable Trust Does
Estate planning primer
The foundational estate planning document — what it does, what it doesn't do, and why it's not just for the wealthy.
Key Takeaways
- ·Avoids probate — assets transfer immediately to heirs without court involvement
- ·"Revocable" means you retain full control during your lifetime
- ·Does NOT protect assets from creditors and does NOT reduce estate taxes by itself
The Beneficiary Audit
Estate planning primer
Beneficiary designations on IRAs, 401ks, and insurance policies override your will entirely. A 30-minute audit can prevent years of family conflict.
Key Takeaways
- ·Beneficiary designations override your will — they are legally supreme
- ·An ex-spouse listed on a 401k will inherit it regardless of a later divorce decree
- ·Contingent beneficiaries are as important as primary — what happens if your beneficiary dies first?
The ILIT: Life Insurance Outside Your Estate
Estate planning primer
An Irrevocable Life Insurance Trust removes life insurance proceeds from your taxable estate — a critical tool for estates above the federal exemption.
Key Takeaways
- ·Life insurance owned by the deceased is included in their taxable estate
- ·An ILIT owns the policy — proceeds pass to heirs estate-tax-free
- ·Crummey notices allow premium payments as annual exclusion gifts
Lifetime Gifting Strategy
Estate planning primer
The annual gift exclusion and lifetime exemption are powerful tools for reducing a taxable estate — but timing and structure matter.
Key Takeaways
- ·Annual exclusion: $18,000 per recipient per year, zero tax, zero forms
- ·Lifetime exemption: $13.6M per person (2024), indexed to inflation — use it before legislation reduces it
- ·Direct payments for tuition and medical expenses are excluded entirely — not subject to gift tax
Powers of Attorney & Healthcare Directives
Estate planning primer
Who makes decisions if you can't? Durable POA and healthcare directives are the documents that prevent family paralysis and court-ordered guardianship.
Key Takeaways
- ·Durable POA: designates someone to manage financial affairs if you're incapacitated
- ·Healthcare proxy / MPOA: designates someone to make medical decisions
- ·Living will: specifies your wishes on end-of-life care — removes guesswork from family
The Cost of Market Timing
Behavioral finance primer
Why trying to avoid the worst days almost always means missing the best days — and why staying invested is the superior strategy.
Key Takeaways
- ·The 10 best days of the last 20 years cluster within 2 weeks of the 10 worst days
- ·Missing just the 10 best days cuts a $10,000 investment's value roughly in half
- ·The investors who try to time the market lose twice: buying high and selling low
What a Drawdown Looks Like in Dollars
Behavioral finance primer
Percentages don't scare people — dollars do. This slide translates market drawdowns into portfolio dollar amounts to prepare clients emotionally before a crisis hits.
Key Takeaways
- ·A 30% market decline on a $2M portfolio is a $600,000 paper loss
- ·Every major market crash has fully recovered — the average recovery time is 2.5 years
- ·Investors who sell during a crash lock in the loss permanently
Loss Aversion: Why Losses Hurt Twice as Much
Behavioral finance primer
Kahneman and Tversky proved that losses feel approximately twice as painful as equivalent gains feel good. Understanding this wiring is the first step to overcoming it.
Key Takeaways
- ·Loss aversion causes investors to sell at bottoms and hold losers too long (disposition effect)
- ·Paper losses feel real even when nothing has changed about the underlying investment
- ·The antidote: pre-commitment — agree on the plan before the market moves
Recency Bias: Why Today Feels Like Forever
Behavioral finance primer
We overweight recent experience and project it indefinitely into the future. Recency bias is why clients want to sell at bottoms and buy at tops.
Key Takeaways
- ·After a bull market, investors overestimate future returns and take too much risk
- ·After a crash, investors overestimate future losses and take too little risk
- ·The correct response to both is the same: stay with the plan
Anchoring: The Price You Paid vs. the Price Today
Behavioral finance primer
Investors anchor to the price they paid and wait to "break even" — a cognitive error that costs real returns over time.
Key Takeaways
- ·The market doesn't know what you paid — your purchase price is irrelevant to future performance
- ·"Waiting to break even" is an opportunity cost — better alternatives may be available now
- ·Tax-loss harvesting turns the anchoring trap into an advantage
What to Say When a Client Panics
Advisor script primer
A structured framework for client conversations during market crises — how to acknowledge fear, provide context, and redirect to the plan without dismissing emotions.
Key Takeaways
- ·Step 1: Acknowledge — validate the emotion before providing data
- ·Step 2: Contextualize — put the current decline in historical perspective
- ·Step 3: Redirect — bring the conversation back to their goals, not the market
Reading the Yield Curve
Macro primer
What the Treasury yield curve tells us about growth expectations, inflation, and recession probability — and how it affects the portfolio.
Key Takeaways
- ·Normal curve: long rates > short rates (positive slope) — economy growing normally
- ·Inverted curve: short rates > long rates — historically predicts recession 6–18 months out
- ·Curve steepening after inversion often signals the recession is imminent or underway
Inflation: What It Is and What Survives It
Macro primer
Inflation erodes purchasing power silently. Understanding which assets protect against it — and which don't — is essential for long-term planning.
Key Takeaways
- ·Real assets (real estate, commodities, TIPS) are direct inflation hedges
- ·Cash and fixed-rate bonds lose real value in high-inflation environments
- ·Equities are a partial inflation hedge — companies can raise prices, but earnings compress in the short run
How the Fed Affects Your Portfolio
Macro primer
The Federal Reserve sets the price of money — and every asset class has a view on it. Here's how to translate Fed policy into portfolio implications.
Key Takeaways
- ·Fed raises rates: bonds fall, growth stocks fall, dollar strengthens, REITs fall
- ·Fed cuts rates: bonds rise, growth recovers, dollar weakens, risk assets rally
- ·Markets price Fed decisions months in advance — what matters is the surprise, not the move
What Credit Spreads Tell Us
Macro primer
Credit spreads — the extra yield corporate bonds pay over Treasuries — are one of the most reliable leading indicators of economic stress.
Key Takeaways
- ·Tight spreads (< 100bps IG, < 350bps HY): market is calm, credit risk is priced low
- ·Widening spreads: investors demanding more compensation for default risk — a warning signal
- ·Spreads often widen before recessions and tighten dramatically in early recovery
The Dollar, Currency Risk & Your Portfolio
Macro primer
A strong dollar hurts international stock returns for US investors — but currency diversification provides long-run benefits that outweigh short-term headwinds.
Key Takeaways
- ·When the dollar strengthens, international stock returns (in USD) are reduced
- ·Currency hedging eliminates the FX impact but costs 1–2% annually in hedging fees
- ·Over 20-year periods, currency effects largely cancel out — long-run allocation matters more