It might sound like a takeoff of a Robert Frost poem, but Tim Noonan isn’t about flowery prose when it comes to investment returns.
“I call it the fork in the road, and which way advisors will encourage clients to go,” says Noonan, managing director of capital markets insight with Russell Investments and author of Someday Rich. “As investors are coached back into the market, will they resume the program in progress, or will it be something completely different?”
He argues for the latter, and adds advisors will be winners with a “fact-based approach.”
By that he means retirement planning has been sold by financial services companies as a “feeling or a mood” (think commercials of couples sitting on the beach watching the sunset), with not enough emphasis on tactical research such as assets and liabilities and stochastic modeling.
“It comes down to fact-based versus feeling-based planning. Fact-based, a thorough examination of what they have and what they need, is what will help clients and make great advisors.”