1. Seminar: Timely Topics for Today’s Business World
Mr. Bernstein
Financial Advisors and Financial Planners
February 2017

2. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners Advise clients on how best to save, invest, and grow their money May specialize in one aspect of clients’ financial lives, such as retirement or estate planning, or may provide lifelong general advice May work in teams or as individuals

3. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners
No longer “stockbrokers” but may have some expertise in selecting securities, ETFs, mutual funds or other investment vehicles
Should have strong ability to advise clients on appropriate asset allocation and risk management practices for their goals and life situation
Are usually not:
Accountants or tax advisors
Insurance agents
Mortgage brokers
…but often have some expertise or contacts in that area

4. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners May be paid a commission when you purchase products May be fee-based – charge a percent of assets regardless of activity or assets owned Both methods of compensation have conflicts of interest In April 2017, new DOL rules may require financial advisors to accept fiduciary responsibility*

5. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners
What is a RoboPlanner or RoboAdvisor?
An online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners.
Costs are typically lower than with
human advisor.

6. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners

7. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners
Get started with an example of a RoboPlanner:
What are the stock funds they recommended? (click “See more details”)
What percentage of your overall portfolio will be made up of stocks?
What factors do you think led them to recommend this percentage in stocks
What do you predict happens to their recommended stock and bond % as you click “+” or “-” in the risk tolerance dial on the “See more details” page?
Why do you think Natural Resources are included? Seems like a strange investment.
Why are they recommending primarily Vanguard funds?
What are the fees associated with this strategy (see the Your Costs tab in the “See more details” page)
What is the probability that a portfolio like this would lose money over a five year period (see Projected Performance chart in the “See more details” page)?
What do you think are the pros/cons of using a Robo-advisor? Do you trust their approach? Why or why not?

8. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners Help busy clients focus on non-financial aspects of their lives Help clients stay disciplined in their financial management and avoid undue risks

9. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
Financial Advisors and Planners “DB” (Defined Benefit) plan members will receive set amount of money from their employers when they get to retirement age “DC” (Defined Contribution) plan members select investment alternatives individually, and at retirement the amount of money available is dependent on investment performance over the years Most corporations have discontinued DB plans The large majority of Americans in high school today will need to manage their own retirement assets…or…

10. Seminar: Timely Topics for Today’s Business World Mr. Bernstein
4th Annual MRHS Financial Information Forum Was held January 14 in the Media Center Included Financial Advisors from: Morgan Stanley (Shrewsbury) Wells Fargo (Independent) Prudential (Brick) Lincoln Investments (Belmar)