As posted on by NAAIM member Ben Warwick on www.thinkadvisor.com and Investment Advisor magazine:
More Volatility, More Problems: Solving the Dilemma of Long-Term Investing
You can design a cogent long-term portfolio for clients using today’s tools, and doing so can help separate your firm from the pack
The challenges to a cogent long-term investing plan are linked by one common element: volatility.
When listing the most demanding aspects of an investment advisory career, finding clients and maximizing firm efficiency typically rank at the top of the list. Those are certainly valid areas for improvement for many firms, but there is another aspect of the business — efficiently building wealth — that is especially challenging. Creating multi-decade investing plans that can generate sufficient income while keeping clients invested during difficult periods is an exercise in asset allocation, investor psychology and expectations management.
