In this episode of the Modern Financial Advisor Podcast, Steve Vecchione and Scott Schuebel of Statera Advisors and Statera Retirement join Mike Langford to share their innovative approach to retirement planning.
After watching or listening to this conversation, it might be hard for financial advisors not to wonder “Have I been using the wrong methodology for retirement planning all these years?”
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Episode Summary
In the world of financial advising, innovation and bold ideas often challenge conventional practices. The latest episode of the Modern Financial Advisor Podcast brings such a conversation to the forefront, featuring Steve Vecchione and Scott Schuebel from Statera Advisors and Statera Retirement. Hosted by Mike Langford, the episode delves into groundbreaking strategies that address the complexities of retirement planning.
A Fresh Approach to Retirement Risks
Steve Vecchione and Scott Schuebel join Mike Langford to explore their unique methodologies in managing retirement risks, which differ significantly from traditional approaches. One of the core elements of their strategy involves addressing three primary risks: longevity, inflation, and sequence of return. By focusing on these risks individually rather than relying solely on portfolio performance, Statera Advisors aim to provide clients with a more secure financial future.
Purpose-Driven Dollars
A noteworthy aspect of their approach involves assigning each dollar a specific purpose. This means that clients' assets are strategically allocated to address particular risks, such as ensuring significant cash reserves to weather market downturns. This method not only enhances financial security but also reduces the emotional stress commonly associated with market volatility.
The Importance of Internal Rate of Return
In stark contrast to the common focus on time-weighted returns, Vecchione and Schuebel emphasize the significance of internal rate of return (IRR) in retirement planning. They argue that since retirees draw from their portfolios, the IRR offers a more accurate reflection of the return clients actually experience. Understanding this distinction is crucial for both advisors and clients to avoid misleading projections based solely on time-weighted averages.
Breaking New Ground: A Balanced Legacy
Statera, meaning 'balance' in Latin, encapsulates the firm’s ethos perfectly. Their approach not only manages risks during the retirement phase but also focuses on maximizing the legacy clients can leave behind. By finding the optimal balance in asset positioning, Statera Advisors help ensure their clients' portfolios are robust enough to withstand economic downturns while remaining aggressive enough to generate substantial returns.
Get in Touch with Statera Advisors
For those interested in learning more about these innovative retirement strategies, Statera Advisors can be reached via their website, Statera-Advisors.com, where more detailed insights and explainer videos are available. Additionally, their second website, StateraRetirement.com, provides further resources and contact information.
Conclusion: Sharing Knowledge and Enhancing the Industry
As the podcast concludes, Mike Langford emphasizes the importance of sharing successful strategies with the broader financial community. With over 70% of Americans still without a financial advisor, the opportunity for growth and improvement across the industry is tremendous. By sharing these insights and methodologies, financial advisors can elevate their practices and better serve their clients' needs.
Resources Mentioned In This Episode:
eMoney Advisor - Steve and Scott are long time users and advocates of eMoney. During this episode Steve and Mike have a bit of fun with a plea to get eMoney to sponsor the Modern Financial Advisor Podcast. Mike also mentions a recent episode of the show in which Dr. Emily Koochel, Manager of Financial Wellness at eMoney was a featured guest.
Dr. Zvi Bodie - Mike mentioned the the teachings and wisdom of his former Boston University Graduate School of Management professor . Dr. Bodie also the author of “Investments” which is the standard textbook used in business schools around the world.
Fispoke - Mike mentioned that new companies like Fispoke are making it possible for RIAs and independent financial advisors to provide banking solutions to their clients. Terry Mullen, Fispoke’s Chief Revenue Officer was on the previous episode of the podcast.
SkyView1 - Mike also mentioned that SkyView Partners has also launched a banking solutions for advisors.
Chapters
00:00 Introduction and Episode Overview
01:19 Meet the Guests: Steve Vecchione and Scott Schuebel
02:03 The Origin Story: How Steve and Scott Joined Forces
02:55 Challenging Conventional Retirement Planning
04:42 Developing a New Retirement Strategy
12:48 Addressing Retirement Risks
18:24 The Importance of Internal Rate of Return
26:14 Understanding Internal Rate of Return (IRR)
26:41 Time-Weighted Rate of Return (TWR) Explained
27:26 Comparing TWR and IRR in Portfolio Management
28:56 Impact of Market Conditions on Returns
30:20 Strategies for Retirement Planning
40:37 Purpose-Driven Dollar Concept
46:06 Balancing Risks for Optimal Returns
49:30 Conclusion and Final Thoughts