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Wealth Professional | 02 Dec 2016, 08:15 AM Agree 0
An experienced advisor talks to Wealth Professional about the realities of goal-based investing
  • Reasonable-Investor | 03 Mar 2017, 01:13 PM Agree 0
    Just saw this, and I like the response. In the past, financial plans were simply taking capital available, and assumed savings rate and then applying a rate of return based on historical asset class returns. Voila your plan.

    Given that we are heading into lower expected returns for the future, and research illustrating that past performance actually has no relationship (correlation) to future returns, we have switched the narrative to goals based planning now. In other words, let's not worry about the portfolio returns. Great way to frame the narrative and try to keep the assets sticky at the big banks and their firms. Just like the old "buy and hold". Bottom line is returns to matter to your plan or goal.
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