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The Decline of the 4% Retirement Strategy


The once-popular guideline of withdrawing 4% of a portfolio annually, adjusted for inflation, to sustain a 30-year retirement has fallen out of favor. With near-zero interest rates, financial advisors are skeptical about the efficacy of this rule. While they acknowledge it as a good general guide, they argue that clients need more creative retirement plans tailored to their specific lifestyles and goals.

JPMorgan Chase Abandons Stand-alone Robo Advisor

Robo-advisors, once feared by human advisors, led to a rush by large financial institutions to launch their own automated investment offerings. However, many companies have discovered that building a successful robo-advisor is no easy feat. JPMorgan Chase is the latest to acknowledge this, announcing plans to shutter its stand-alone robo next year. Although they will discontinue accepting new customers, the bank will continue to provide a hybrid service offering access to both the robo advisor and human advisors.

Mary Ann Bartels’ Optimistic Outlook

Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, holds a bullish outlook on stocks. She anticipates that the technology sector will lead the way. Bartels also expresses her enthusiasm for Bitcoin, small-caps, and banks. In an interview with ‘s Advisor on The Way Forward podcast, she states that she believes 2024 will be the year of the bucking bull for stocks and bonds. Bartels predicts a continued bull market for stocks next year, with bonds also experiencing positive growth.

Wells Fargo Adjusts Advisor Pay

Wells Fargo has announced adjustments to its financial advisor pay structure. While core compensation will remain unchanged next year, there will be modifications for advisors who have been in the business for a significant amount of time but generate less than $300,000 in annual revenue. Additionally, the bank will reduce the amount of money advisors receive when assisting clients in obtaining a mortgage with the bank.

An Unwelcome Regulatory Proposal

The North American Securities Administrators Association has proposed revisions to its model rule on business practices, and not everyone is on board. These proposed changes would align with the SEC’s Reg BI standard, provide clarity for state interpretation and enforcement, and address the misleading use of the title “advisor.” However, wealth management firms are criticizing the proposal, claiming that it falls short of achieving its intended goals.

Sweep Account Woes for Merrill

Merrill Lynch is facing another lawsuit related to their sweep accounts. The plaintiff alleges that the Merrill Edge client agreement promised a “reasonable rate of interest” on cash, but Merrill fell short compared to its competitors. While Merrill defended itself against similar complaints in the past, the plaintiff’s lawyer remains determined.

Fielding Miller: Building a Billion-Dollar Registered Investment Advisory Firm

Creating a successful registered investment advisory firm with billions of dollars in assets is no easy feat. In this week’s Advisor Q&A, we had the privilege of interviewing Fielding Miller, the CEO and co-founder of Captrust. With $143 billion in discretionary assets and an additional $688 billion under advisement on a nondiscretionary basis, Captrust stands out among the elite few that manage over $100 billion.

Miller shares the story behind Captrust’s establishment, revealing how it spun off from a regional brokerage firm in the late ‘90s. He also highlights the firm’s expertise in mergers and acquisitions and sheds light on their unique approach, including their “no golf ball” rule.

Wishing you a fantastic weekend!

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