Breakout Session

The 60/40 Portfolio is Dead: How MPT Fails Investors In or Near Retirement

Level of Complexity: Intermediate

Presenter(s)

• 

  Gib Watson, III, CIMA

  Chief Strategy Officer
  Swan Global Investments

How will financial planners navigate the dual dilemma of low yields and highly valued equity markets when planning for their clients' successful retirements? Investors who are in the retirement corridor are living longer than ever before, and can’t afford a major portfolio draw down while needing to generate sustainable levels of income to support their retirement lifestyle needs. This session will examine whether Modern Portfolio Theory has lived up to the planners and their clients’ expectations particularly in regards to best practices and serving clients' interests as fiduciaries.

Learning Objectives:

• Assess a client's existing portfolio allocation in the context of current investment landscape to develop long-term financial plans that meet the needs and objectives of their clients
• Explain the challenges a low-yield environment presents to a long-term financial plans, retirement income and cash flow needs, and portfolio resilience
• Describe alternative portfolio construction strategies to de-risk portfolios while limiting exposure to bonds (duration risk)