Morningstar, David Blanchett, Cfpb discussed on The Kristen Hagopian Show

Automatic TRANSCRIPT

Management company out of a northwestern we've heard from morningstar and david blanchett who as their chief investment strategist at morningstar see fa and a cfpb did a study awhile bag with a couple other dudes entitled alpha beta now gamma gamma being described as the added value that advisers can actually bring to the table and he spoke recently at a financial conference uh in philadelphia pa and he discussed what advisers should do to help their clients at this socalled gamma component if you will and i thought i would go through this a little bit because it is critically important that you have an advisor that can add value you've learned on this program and many other programs that advisers really aren't going to deliver significant economic results from stock picking i know we've talked about high active share and a lot of the reasons that you can that an adviser a good moneymanager can add value beyond their fees but i mean it's one person has one and a quarter percent it's not gonna make the difference i don't think when you have to pay them an extra one percent or two percent to do that because the one or two percent the japan is right out of pocket and the one or two percent and they might earn you over and above that expands is somewhat of a gamble isn't it so i'm often what i've advised financial advisers i've advised them to go beyond just picking stocks and picking mutual funds and doing asset allocation because the role does can do that the robots that are out there are all geared up to do that tax loss harvests thing and and all that stuff yeah you can add maybe twenty basis points by doing that automatic rebalancing yeah maybe twenty basis points maybe nothing but there is true value and tremendous value in that relationship where they actually talk to you about your balance sheet and how it looks in comparison to others if you're a business owner what kind of retirement plans might best suit you or how you might save tax dollars i was in a meeting with an individual this past week and this individual could save is a business owner could save at a bare minimum.

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