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AdviceTech.Live & Year End Tax Planning with YCharts on Advisor Office Hours

Updated: Nov 4, 2023


First up, we're thrilled to offer you a virtual front-row seat to the upcoming AdviceTech.LIVE event. None other than Adam Holt from Asset-Map will be your guide, briefing us on the novelties and nuances of this not-to-be-missed conference. Scheduled for the 2nd and 3rd of November, this event is a convergence of the brightest minds in the financial tech space. Wondering about the latest trends and tools set to reshape our industry? Adam’s got you covered. And the best part? We're giving away FREE tickets! Secure your spot now at https://www.advicetech.live and mark your calendars for a transformative experience!


But that's not all we have in store. With the year winding down, there's a timely discourse on the horizon that you won't want to gloss over. Austin Lieberman from YCharts takes the helm to discuss "How To Show Potential Tax Saving To Clients at the End of the Year." As December 31st looms, the race to optimize clients' portfolios for tax savings is on. Austin will walk us through groundbreaking approaches, backed by the latest YCharts report, ensuring you're equipped to deliver maximum value to your clients when it matters most. Don't wait to gain this competitive edge—download the essential report from YCharts today: https://tinyurl.com/2pmdp6fn


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Transcript:


00:00

Welcome to advisor office hours on financial advisor TV. My name is Jay Coulter. Today we're gonna talk about investing during periods of conflict and war, inflation, interest rates, the muni bond market with the team at Opal capital. We're also gonna bring in a gentleman from Y charts. Yeah. Let's talk about advice tech live from a high level. Adam, why did you start advice tech live? Well, because I'm a glutton for punishment and we like doing lots of work for free.


00:29

No, Advice Tech Live, Jay, and thanks for having us on, is a community project, as hopefully you guys have seen some level of advertisement around it. It's an attempt to do a hosted party of all the people in FinTech who are building advice experiences. The theme this year is advice engagement and the future of tech-enabled delivery of advice. And what we wanted to do is create an accessible experience where all financial professionals and students of advice.


00:56

can come and actually experience what's being built, what's new this year and what's coming. So we have 20 demos that are the core, Jay, of putting them on the main stage and say, what are you building in 10 minutes? And now move on to the next one. And so the challenge is that a lot of advisors just don't get to see what's coming. And we hope to really bust that challenge with this. It's the fourth year we're doing it, benefits charity. Think of it as a huge potluck. Everybody just bring your ideas. Let's share it and expose what's being built.


01:23

All right, so you talk about it being for charity, you guys have an amazing list of benefactors. Allison, could you talk a little bit about the benefactors, the partners and what you guys are doing with that program? Absolutely, so thanks again for having us. And this year we've decided to work with two different charitable organizations, both Invest in Others and Leukemia and Lymphoma Foundation in the name of Gavin Spitzner. Working with two really amazing foundations to not only help get the word out about important technology, but...


01:52

Like Adam said, it's a charitable event. We really want to make sure that we're supporting who's doing great things in the industry from a charitable perspective. And we tend to pick different charities every year. And these are the folks that we're working with this year and they've just been phenomenal and we're so excited to support their causes. Yeah. I'm a big fan of the lymphoma and leukemia society. Having had lymphoma myself and having been friends with Gavin this year's benefactors, I think hit a special spot with me.


02:20

Tell me, last year, how much money did you guys raise for the benefactors? Last year, we pushed, I think, a little over $30,000. The idea of the event is that because it's a potluck, it costs some money to run this event, significant amount, we basically collect money equally from every single sponsor. And if we have leftovers, that's really what goes to Lymphoma. This year, we actually got some big names that you'll see actually profiled on our keynote that decided to do major sponsorships for the charities, which enabled us to provide the entire program for free, Jay.


02:50

So there's no ticket charge for advisors to get in, which is awesome. No excuses not to sign up and get those recordings if you can't make it in person. But we expect we'll probably push $50,000 this year, which we're really excited about. That's fantastic. Viewers, listeners, you can also go to the AdviceTech.live page and donate directly to these benefactors that the team are promoting. Let's talk about the agenda. So when you look at the agenda today, if you're a financial advisor, Adam,


03:18

What should advisors focus on first? What do you see as the big draws? I think the first thing is the showcase, right? We're basically doing four 10-minute demos from five companies back to back, and Allison hosts it. So she knows this one really well. We've done it every single year, and you can see there's groups A, B, C, and D over the two days. We had a lot of requests this year to break it up and not actually do this all in one day because people couldn't take it. So we did break it up into the afternoons of two days, the second and third of November.


03:46

You're gonna see fantastic technology, some which you'll relate to, some you've never seen before. There's some big names there like Morningstar and Redtail as you can see. There's also some of the newer companies you have not seen that are coming out of left field. Also Holista Plans is gonna be there showing what they're building. So I think you're gonna see really a lot of focus on the demos, but there's some new stuff that actually Allison is running. Maybe you wanna share Allison on the expert panels. Absolutely, it's a great point about the tech demos. We really wanna get.


04:12

everyone equal billings. Everybody pays the same amount to be here and join us as a sponsor and support our charities and have the same amount of time to talk about what they're working on. I do wanna call out that I've had some great prep calls with some of these tech sponsors. And I can think of five or six right off the top of my head who are gonna be making major announcements of new features and new products that they are rolling out. Knowing that we're gonna have some great media at the event and also just a tremendous amount of advisors in attendance. So.


04:40

get to this event to see these amazing product innovations that are gonna be coming from our tech partners. But another thing that you mentioned, Jay, is our expert panels. We had some really great feedback in prior years of really just Adam and myself talking about what we saw, what we loved from the previous presentations. And we turned it into a full session for 45 minutes at the end of each day with some really amazing industry speakers and experts to come in and say, what really stood out to them?


05:07

what is just a no brainer to sign on with and who's making some major innovations. That expert panel to find out what was really the highlight of each day is gonna be really exciting. And we can't wait to have that happen again toward the end of each day on November 2nd and 3rd. All right, so viewers and listeners, you can pick up your tickets at AdviceTech.live. Adam, this year, the tickets are free. Why the change in policy this year?


05:35

I think that the argument that we had was that we wanted to make it accessible to everybody who couldn't get on a plane and go to the industry conferences like future proof and t3 right you couldn't take three four days and spend several thousand dollars out of your budget to go see what was being built and so the whole point was accessibility.


05:51

We just pushed the limits this time and said, wait a minute, we want no excuses why you can't go. Because if you register, you can also get the recordings. It's the only way you're gonna be able to see this stuff because then it's gonna get behind closed door again. So the key is if you wanna promote accessibility, even for the students of advice, you gotta find a way to make it accessible. That means no door charge, no expected contribution to charity. That's on as if you feel comfortable and do wanna do it, that's great. But I think the key is we had to align a lot with that.


06:21

So therefore it's free. No, no excuses. I love it. And a lot of that's driven because of your keynote community sponsors, which I think it's important to point out who they are, because they're investing not only in helping advisors build better businesses, but also these charitable benefactors. So Investnet, Equitable Advisors, Cambridge, Carson, Advisor 360, and Orion. That's a powerful lineup. It is. Well, we were really lucky to have a fantastic network of community


06:47

leaders that actually in these organizations that actually see the vision of it. Now, think about it this way, Jay, when else do we get to see three competitors get on the stage leadership and talk about their vision while each other is listening, plus where they're going. And that's really what's happening. Day one and day two, day one are national firms talking about what's the difference they're gonna make in decisions for millions of our customers. And the second group in day two is talking about


07:16

tech that they're building in these all in once for enterprises that we all use. So the interesting thing about Orion and best net and advisor 360 is they're taught they're touching hundreds of thousands of advisors. Does anybody get insight into what they're doing? Now let's put them all on the same stage and ask them straight up. And I think in a live forum, it's going to be really interesting to see how that plays out midday keynotes and that are flanked on both sides with the, with the tech demo. So there's no way you could miss that one. An excellent agenda spread over two days.


07:46

the speed demo portion of this I find very interesting. I'm a big fan of speed demos. advisors have short attention spans, you want to get your message across quickly so they can determine if they want to do a deeper dive. I look at this screen, I see Allison, like you pointed out the names that you know, and some that I don't. And it's my job to know these firms. It's really interesting. Tell me what could advisors expect from the speed demonstrations at the event?


08:10

Yeah, I think for the speed demos, and again, we've gotten a bit of a sneak peek into what folks are going to be covering. They really take the opportunity, not just to necessarily talk about what they do as an overall company, but really supporting our theme of advice engagement and helping advisors use technology to deliver great advice to their clients and prospects. And that's really what they're focusing on. And that could be a back office function through a CRM, or that could be a very much a client facing function as well. So how these really, these tech companies are supporting advisors and what they do best.


08:40

is really what the event is all about. And like I said, we're seeing just some absolutely phenomenal innovation happening in these tech companies. And they're going to be showing it at our event for anybody to see, like Adam said, without even having to travel from the biggest names to the newest folks on the block, really impressive stuff and where we can't wait to see what they have to show. I bet. Alison, are you expecting any announcements during advice tech live? We are expecting some announcements as we again, did some of our prep and got these folks ready for the upcoming demos.


09:08

They gave us heads up because like they said, they knew that we're going to get some incredible attendance and media will be in the in the show. So they wanted to give us a bit of a heads up that they're going to actually have some product innovations happening companies like Holista plan, FP, alpha, bento and more with product innovation. So you just really can't miss that. Excellent. Guys, thank you so much for coming on. I tell you, I love this event every year. Financial Advisor TV will try to live tweet


09:35

the event as you guys are going through it. Thanks for all you do for the advisor community with this event. Advisors, sign up. Couldn't be easier. Go to AdviceTech.live. Simply pay nothing, grab your ticket and join the event. November 2nd and 3rd. Guys, thanks so much for coming on. You got it. See you. All right. I'm sorry about the clunky opening that we had there with the team from Asset Map. Now, some of the technical difficulties we had in the beginning.


10:03

have also prevented us from bringing on the Ycharts team to talk about their thoughts around tax planning this time of year using their technology. We're gonna record a separate session with them so that you can see exactly how that Ycharts tool can be used to help you in your tax planning process. Now, I wanna play you a segment that we recently recorded around investing during periods of regional conflict.


10:31

potential larger geopolitical conflicts, how inflation and interest rates can impact your portfolio. This is done with the team at Opal Capital, Austin Graf, and Adam Mueller from the Opal Dividends podcast.


10:48

Adam, when you look at the conflicts that are brewing across the globe, what should investors be thinking about as it relates to their portfolio? Yeah, that's a great question. And let me start by saying that obviously there are some terrible things happening in the world today. And we don't want to comment on our specific political views. But no matter what you think, you have to stop and think about and the bonds and whatever else you own doesn't stop trading just because a conflict breaks out somewhere in the world.


11:16

So I think it's important to remember that markets tend to have a knee-jerk reaction when a geopolitical event comes seemingly out of nowhere. So don't panic, don't sell because things are down, don't sell if something's up. If you have the right portfolio, it should be able to withstand that initial sort of panic moment, and you should stop and think and assess what's going on. Think about what region of the world are we talking about? What commodities are affected? And how could that play into your portfolio?


11:46

But if you have companies with strong balance sheets that are good, solid businesses, chances are the right reaction is to do nothing and ride it out.


11:56

Austin, I'm going to pull up a chart here. This is a two-year chart of TLT and the Qs. I've been getting a lot of calls from my advisor network about the frustration they're having in client communications with regards to the drawdown in the bond market. What's the right way to look at this chart and position communication with investors? Yeah, I think it's a really interesting chart. And it has a lot to say about duration.


12:23

and the disconnect between the equities market and the fixed income market right now. So if you look back two years, essentially, this is around time that the Fed started increasing interest rates at a pretty aggressive pace. And for the first about year through 2022, you saw higher duration equities in the QQQ and higher duration fixed income in TLT.


12:49

move in the same direction. They both move down pretty aggressively through 2022. And then as we enter 2023, you see this unique moment where TLT continues further down, going down another 10% through the year so far. And then you see the queues recover almost 100% of their value that they lost in 2023. It's a unique dynamic, I think.


13:14

A lot of it comes back to many advisors are focused on a 60-40 portfolio, and it's been a huge kind of tailwind for many portfolios for the last 30, 40 years. A lot of it had to do with the fact we were in a pretty long bull market for fixed income. So at any point in time where there was a slight hiccup in the economy, officials tended to try to drive interest rates down through monetary policy to support the economy going forward.


13:44

that often offset the decline in equity prices in that moment. We're not in the same situation today as we don't have the luxury of pushing rates below zero. So the Fed had to reset rates to a higher level and that's where we've seen this disconnect between equities and fixed income. I'm not saying that the relationship is dead forever but it does seem to be at least.


14:11

not the most reliable in the current moment as we've seen interest rates rise and we've seen equities act in a different way. So I think going forward, investors need to be more selective in how they think about hedging out their equity exposure. And it can't just be broad-based fixed income expected to bail them out at any time of day. Adam, I completely cherry-picked that chart.


14:35

So if you're an advisor today or an investor looking at using fixed income to hedge your equity exposure, what concerns should you have to follow on with what Austin was saying? And is it still a viable solution for a portfolio? Look, I think there's still a place for fixed income in a portfolio. Absolutely. You just have to be much more cognizant of duration, you can't just go buy anything. If you


15:01

buying some mutual fund where you don't understand the duration or they're going to be trading around positions could create a lot of problems. But if you just go and buy short dated US treasuries and ladder them and just keep rolling them over, you could capture a nice 5% yield and still have that low duration optionality as things play out and see what happens. And if then you're concerned, but oh, what if rates come down? I won't have locked in a high long-term yield. Yeah. But if rates come back down.


15:29

the equity portion of your portfolio might be doing so well that you won't care.


15:34

Yeah, Austin, here's a chart of MUB, which is the I shares national muni index just as a proxy for intermediate duration muni bonds. The technical chart here is complete carnage. Is this something that long term investors should consider legging into? I think blanket exposure to munis right now is difficult. Again, you're talking some duration exposure, but you're also talking


16:04

Many of these munis have potential fundamental issues because the different governments that are backing their payments may have issues with debt loads, may have issues with taxing authority, may have issues with general demand. And I think we might be in an environment where you're seeing some of the fundamental issues pop up. And that's what's driving the price action for broader indices.


16:30

I think investors need to be more selective in which munis they own and make sure that they own munis that have revenue profiles that are supported by current prices rather than just purchasing blanket portfolios expecting to take advantage of some change in the market. Research and active management. If I wanted to lower my overall tax burden, I would advise you, I'd move to Florida before I'd buy a muni fund. Just get rid of that state tax and you'll, instead of just buying some bucket of crap.


17:01

Yeah, and it really speaks to active management again in the muni space if you're going to be allocating there. Work is not that bad either. It's a great place to live. Great quality of life. But hard to find a house which Adam brings me to the next question. You look at the housing market today, which is such a huge part of the economy. And you look at 30 year mortgage rates at 8%. What type of drag is this putting on the overall economy? And how does it affect portfolios? I think there's lots of interesting effects because of where the mortgage rate is at.


17:31

large percentage of Americans that own their homes have rates locked in below 4%. Keeping in line with the technical difficulties we've had today, the rest of that interview can be seen on Financial Advisor TV and the Opal Dividends YouTube channel or the Opal Capital YouTube channel. Now, Austin Lieberman from YCharts has been able to get into our technically challenged virtual studio today. I'm going to bring Austin on.


18:01

Austin, I'm sorry about the challenges that we've been having here today. Welcome to Advisor Office Hours. So, Austin, we're not able to hear you if there's any changes you could make to our broken studio. Should be good to go. Can you hear me now? We are good to go. Welcome to Advisor Office Hours. Sorry about all the technical challenges that we have had. I got to tell you, though, I'm excited you're here. My viewers know the white chart mug is usually up in the upper left hand corner and...


18:29

I'm always flying the white charts flag. Love it. I get asked a lot if I work for you guys or if I have a commercial relationship and I don't I'm just such a big fan of the platform and how it can help advisors streamline their business. So I appreciate everything you guys do at white charts. And you've come out with a new guide for advisors. Yeah, thanks, Jay. Thanks for having us on the podcast. And thanks for Yeah, just saying good things out there publicly and for kind of sharing some of the stuff that


18:59

that we put out there and the goal, like you talked about, we just released a guide that's oriented at just helping advisors know how they can use some of the different tools and features we have and that we've built recently to help not just optimize clients' portfolios for tax advantage investing, but also to show clients what they're doing in those portfolios. Cause we're big fans of KitSys and I myself listened to KitSys and Karl.


19:29

And I specifically remember several episodes that they've done where they've talked about how nowadays it's not just good enough to have good performance for clients, but with the age of technology and really just the advancement of financial awareness out there and everything from social media to the big media networks, people want to know what advisors are actually doing to help them. And so that's a lot of what we were trying to get at with the guide. And I think we're going to just.


19:59

dive into the guide a little bit here and do some hands on kind of sharing. Yeah, I'd love to do it. So I read the report and prep for this. It's a great walkthrough. I encourage advisors head over to why charts.com or there's links in not only the show notes, but sub tweets on Twitter where you can go and download this report. But Austin, why don't I turn it over to you and you can walk advisors through how they could leverage why charts to accomplish this.


20:23

Yeah, sure. Let me, if it's okay, I'll just share a, the report at a high level, just so anybody listening or watching, we can set the context real quick and then I'll do demo directly on our platform, walking through some of the different scenarios that we talked about. Perfect. Cool. Um, share my screen real quick. Right now you should see the home screen here. There we go.


20:50

So this is the report we're talking about and we're not going to go through the whole thing again. They talked about this is available to for free to anybody, but for there's a landing page where you put your email in and we'll email it to you and then clients, especially you can go right inside your account and get access to this. If anybody, if you're a client and you have questions at how to get to this, we'll show you how, but also you can talk to your account manager and that'll point in the right direction as well. I'm very hands on.


21:18

Couple of things covered in this guide overall, but again, really getting at how to visually show tax savings in this case, but you can do this using our scenarios tool with really any scenario you want to show them. But for this, we're talking about tax savings. So we're showing advisors how to show the work that they're doing for their clients, how to find tax efficient investments. It's funny. I was just listening to that last segment and


21:42

One of the people on the show were talking about like, yeah, it's important to think about tax efficient investing, but you also don't want to just invest in junk either. There's ways you can look for what advisors might think are good opportunities, not just something that's tax efficient. How to build tax efficient strategies, presenting those strategies to a client or a prospect and using our report tool, and then taking advantage of tax loss harvesting, which is a common thing. I don't think we'll cover that on this because most advisors are going to know how to find.


22:08

Investments that are maybe down for the year to offset some capital gains or something like that, and then different tools and support that we have. Jay, this again, stemmed from our client communications and a survey that we did from advised people, but also from conversations that are happening out there in the industry. I talked about Kitsis and Carl, but basically we surveyed 671 clients of financial advisors to learn their preferences. And basically what this survey told us was that.


22:38

Clients don't just want their advisors to help them grow their nest eggs, but they want to be more informed. Like I talked about before. Left side is clients with 500 K or less under management. Right side is 500 K or more under management and portfolio performance was really important to them. Accessibility and availability to the client was number two for the, the clients with 500 K or more.


23:05

And it was a number three for clients with 500 K or less, but then deep understanding of the client and their goals again was ranked number three on the right side, that's clients with more than 500 K and number two on the left side with clients with less than 500 K. So the bottom line is that people care about portfolio performance, the advisor's accessibility, and then knowing that the advisor has a deep understanding of their goals. So again,


23:32

What we're trying to do here is help advisors tackle those things and make sure that their clients know what value they're providing to them. And talked about a scenario, right? And this is probably a common conversation, a very common conversation that advisors have with clients. What type of account should they be invested in? And there's a tax advantage accounts and then non-tax advantage accounts. So we just did a basic scenario and we built out a scenario where somebody's investing either.


24:01

dollar cost averaging for 15 years into a, just a normal brokerage account with no tax benefits. And then we compared that against somebody that is doing the same thing, dollar cost averaging for 15 years, and then drawing down for five years in both of those scenarios in a Roth. And essentially we just showed the difference that if you're an advisor listening to this immediately in your mind, you can almost probably calculate what the difference would be if somebody were to use a


24:30

tax advantaged account versus a normal brokerage or non-tax advantage account. But what I think is often forgotten or overlooked is the importance of showing that in a very easy way to understand visually to clients. And so that's what we've done with our scenario builder tool. And at the bottom, you see the graph here and I'll go into it, but essentially you're showing a $75,000 difference.


24:57

over that timeframe between using a Roth IRA and a, just a normal non-tax advantage account. And so then when you're having a discussion with clients over fees or what value you bring, it's a very tangible way to show with just one piece of your planning process and your strategy, you're offering a ton of value to clients. Any comments, Jay, or anything you want to discuss about this, the scenario right here?


25:23

Not at all. It's very compelling for the advisor community to have these types of resources available when they're working with their clients. Oh, awesome. We'll jump to these, but this is just using our screener tool of how to find funds. And so again, we'll jump into the tool and go through how to look at some ways to find tax efficient investments, seeing dividend yield, what's the turnover ratio, we're trying to keep that tax burden low if we're not in a tax advantage account. So we'll get into that. Again, more of just the screener tool here.


25:52

And then using our model portfolio tool, we are named Y charts. We people, I think probably eight, nine years ago, maybe looked at why charts as mostly a research tool and a charting tool. What we've really done over the past five plus years now is really branch out into a full service platform for advisor communications. And that's good for everything from prospecting to.


26:21

communicating with current clients. And so our model portfolio tool is a great way to do that and to really dig down and see the specifics about investment strategies, about model portfolios, you can look into certain funds. And so we just showed how we can look at tax efficient investments or any investment using our model portfolio tool. So we'll jump into that as well. And then presentations, proposals and reports.


26:46

These again are built for advisors to use in communication with prospects or clients. And we've recently introduced talking points, which is a way you can see it at the bottom of the, the graph here or of the PDF here, but now inside a proposal that you create as a custom report, you can create for a client or a prospect. You can point out specific things. Like we just talked about the differences in a tax adjusted return versus a non tax adjusted return.


27:15

Or if you want to show why you were recommending a certain fund to a client or a prospect, and you wanted to talk about the stock exposure versus bond exposure, you can call out these very specific things with talking points inside these proposals, which makes them feel very personalized for whoever you're reaching out to. Again, tax laws harvesting won't go into detail with that. And we're very proud of the time and effort we put into.


27:43

Our support, this report is, is an example of kind of the tools and resources that we provide. We're always trying to provide value to not only clients, but, but just advisors out there who may not be Y charts customers of ours. again, a lot of these reports are free, but with clients, every single Y charts customer gets a dedicated account manager and a customer success representative. These people are located in our Chicago headquarters office and.


28:13

They're available pretty much at any time. You get a link directly to your customer success manager. If you need to schedule anything, if you have questions, we're all about support here at white charts. Austin, I can speak to that directly. James is my guy and he responds same day, very well versed on the tool. I able to help me to solve complex problems. And usually my problems come from my advisors asking me how to solve this problem or that problem and James Han is right on it. Yeah. That's awesome. That's good to hear.


28:43

We'll let James work here for another day since you, since you said that. No, James is awesome. Cool. Jay, this is the blog. This right here is free for anybody. So whether you're a Y charts customer or not, get.ycharts.com has all kinds of research and reports, visuals that we share and anybody has access to this. So just wanted to show that. I think we'll probably share that out in the notes. This is the inside the tool. So if you're a customer and you're logged in and you go to support.


29:11

You can go to insights and visuals that'll bring you here. And this is where you get access to some of the stuff that just customers have access to. We've got a top 10 visuals deck for client prospect, meanings all kinds of stuff, economic summaries, fund flows, monthly market wrap. Okay. Getting into a demo of the actual, the tool and specifically how to do these tax efficient investing. So real quick, just if anybody has the, you're at your dashboard and you don't know exactly how to set it up.


29:41

There are some templates and we do templates pretty much for everything to just help people get started. So you can pick from any of these templates and it'll set your dashboard up the way you want. So if you want to see us economy, you just create that. I've already got one created, which is why it's giving me that. But then I'll just click into here. There's a dashboard and it's going to give you whenever you log in. If you cared about the U S economy, if that's the type of things you're paying attention to, you have all of that right there, but let's get into the scenario builder and the way you access this is going into tools.


30:12

And then scenarios. So I've prebuilt some of these, but they're very quick. I just did it to be timely with this episode here, but as you go into scenario builder, it's pretty intuitive on the side, right? We used in the example, we use the fidelity blue chip growth fund and that example that we talked about, and you can compare it to a benchmark, which I think we just use the S and P 500. But basically the scenario we did is we said going back to 2003, if somebody had invested for.


30:40

20 years and 15 of that was dollar cost averaging. And then the last five years they entered into retirement and started withdrawing. What would that look like? And again, that non-tax advantage account, just a normal brokerage versus a Roth IRA. And so that's the start date and the end date. We started with a $10,000 investment. And then this is where down below you can build your scenario. So I've pre-built these in, but it's very simple if you just wanted to add a scenario. So here.


31:09

the Fidelity blue chip growth, and this is my taxable example. We did monthly contributions of $500 from basically September, 2003 to September, 2018. You can see that right here. Each year we're adding $6,000 to the portfolio all the way up until 2017, basically, and then in 2018, you begin drawing down. And then the last part of the scenario is to start with drawing.


31:36

And this is where the difference comes in. And we said, and there's a lot of nuances to this, right? So everybody's situation is going to be different, but we just tried to say, Hey, if that person entered retirement and they were at a 15% and it's 15% tax bracket, which we try to keep it on the low side, then if their cost of living was $5,000 a month, or that's what they needed to withdraw from this investment.


32:02

Then to, in order to pay the taxes on that, they would actually have to withdraw $5,882 a month to make up for the differences in the taxes they'd have to pay on that. And so that's where you see the drawdowns of 70,000, 70,000, 70,000 and 52 in 2023. And what that shows is that from the start, 2003, all the way until today, taking in the contributions in the withdrawals, the portfolio value.


32:29

That investment value would be at $141,974. And then what you can do is you can actually, so I saved this so you can save that scenario and then you build another scenario. And so this is where, if you're an advisor, this doesn't have to just be about taxes. This could be about anything that you wanted to show in a scenario using different funds, different contributions, different withdrawals. So now I built essentially the same scenario, same timeline and everything.


32:58

The only difference I made is that during the withdrawals, we were saying you're withdrawing from a Roth. And so in order to get that $5,000 monthly, uh, requirement, you only need to withdraw $5,000 instead of 5,800 because you don't have that tax burden. And again, I'm not a tax expert here. I'm there's a bunch of nuances to all this. So we just try to show a very simplified scenario, but at the end of the day, the difference that you can show.


33:26

without all those sort of the complicated intricacies that you might lose a client in is that, hey, if you went with the tax advantage, the Roth, you're going to end up after five years of withdrawals with $215,000 in that investment versus if you were in a taxable account, $141,000. Right there, you're showing that $70,000 plus dollar difference in those two scenarios. Again, this took me before the show about 10 minutes to build.


33:56

And so as you do this more, you get faster with these things and you can use the scenario builder to show pretty much anything, any scenario you want.


34:06

That's the scenario builder. The fund screeners very quick. If you're familiar with screeners, all I've done here is I've taken these, there's 66,000 funds, 67,000 funds. I filtered out anything that paid a dividend. Cause again, the goal here is tax efficient investments. When that's the case, you want your return to come from appreciation, not dividends and not to say that.


34:31

This is not a dividend versus non-dividend argument. We're simply going with the most tax efficient investment possible. So that brings you down to 12,471. And then we want to keep that turnover ratio low, right? This is below 20%, which I believe means they're going to turn the entire portfolio over every five years. That brings you down to 2,838. And then you can take, you can. Using our metric columns down below. So this doesn't filter anything else out, just a way you can look.


35:01

pair what you get from the screener, you can look at annualized tax adjusted monthly returns. And so I've sorted it from basically the top tax adjusted 20, 20 year returns. And again, everyone knows past results are no promise of future returns, but that's how you can filter these different investment options from your screen down to find the ones that fit whatever specific goal you're going after. So that's the screener that we showcased.


35:30

Model portfolios very easy. Hey Austin, before you go to the model portfolios, real quick, a story from about three or four years ago, I had posted something about a challenge an advisor of mine was having with some Unibond funds and just asked my audience, was probably on Twitter or LinkedIn, if they had any ideas. James called me within an hour and said, you can do this in Ycharts and walk me through what you were talking about. It's a really robust screening tool that really helps advisors solve problems. Awesome. Yeah, cool. Thanks, Jay.


35:59

I guess James must have your, your Twitter on notification or something. So you can see what's going on. Cool. Okay. Model portfolios again, essentially just think about any strategy you want to show you could put into a model portfolio. And the cool thing about it is once you save it, you can view your model portfolio just like any equity on the platform. So you get a quote page and it shows you everything you could ever want to know about the model portfolio.


36:28

And then you can use that to build scenarios off of, to put into reports. And so this is just using a basic ETF model. Um, sick, this is a 60% equity model. I won't go too in depth into this, but cool thing is very quickly, you can show the top 10 holdings in any model portfolio that you build. So for this one, since it's a 60% equity portfolio, it's using VTI, BND, VX, US BNDX and VMX was just a mixture of equities, bonds, fixed income.


36:58

And then important thing for advisors as they're having different conversations is especially with clients with different risk appetites and risk timelines is the max drawdown, right? We want to know how reliable and how volatile are these different strategies. Max drawdown since inception for this has been 21.74%.


37:20

And then getting into the report builder. So this is where we've started with a scenario we've screened out and gotten to the investment options that we want, we've put them into a model portfolio, and then we want to build a report that we can use to send to prospects. A lot of advisors use our report building tools, our proposal tool to show potentially what investments a prospect is.


37:49

Maybe they're invested with somebody else. They could take a look at the investments that they already have and the expense ratio, the fees they might be paying the, if it's in line with their individual situation, their retirement scenario. And then they compare, can compare essentially a competitor's strategy that they're currently invested in with what they would do for the prospect and show them, maybe they're a lot cheaper on fees. There's less turnover. They're better for taxes, all these different things.


38:15

And compare things side by side using our report tool. It's a very popular way people use our proposal tool, but essentially you can put all the work that you've done into a nice PDF that's customized and you can. Point out those specific talking points we were talking about, and then showcase that scenario that you talked about. And so this is just a quick example of a one pager that of what that would look like, and again, you can make these as short or as long as you'd like, but using that fidelity blue chip growth scenario that we showed.


38:45

taxable versus Roth account. You can see the differences in the options that you talked to a client about. And then using our talking points, you can show sort of the differences. And these are customizable. So I just use tax adjust returns and then stock allocation. You could basically put any number of different things in here that you wanted to call out to show them exactly why you made these recommendations for them. And a quick PDF that you could either print out and give to them or email to them or


39:14

however you wanted to deliver that. And so that's really it, Jay, I hope this was helpful, happy to talk about a little more discuss anything or if anybody wanted to reach out, my email is a Lieberman at why charts.com. Excellent. Awesome. You did a great job walking through the report and then the why chart platform and how advisors could use it. I got to tell you there. The speed at which your development team brings out new resources to advisors is incredible.


39:44

I love the new talking point functionality that you have. Model portfolios has been a staple of my consulting business working with advisors because you guys make it easy. And not in conjunction with your marketing team, but when I talk to advisors, I say, here's the three reasons this could fit in your tech stack, especially if you're a breakaway advisor that's used to having the internal resources inside of your warehouse is the portfolio proposal tool, the model management, and then the client communications. Because once you go independent,


40:14

you get to change the way you communicate with your clients. And why charts is the best in class platform to do it. Austin, I appreciate you coming on, we'll have links to the report in the show notes, you'll find it on social media. And if you're not on wide charts yet, make sure that you go and grab a free trial wide charts.com. Austin, thanks for coming on. Thanks, Jay. Appreciate being here. Appreciate you too.


40:38

All right, everybody, I'm sorry about the clunkiness and technical challenges we had in the beginning. Today, we learned about advice tech live, make sure you grab your free tickets. They're free. And what you're going to learn during those two half day sessions can help your practice. Then the team at Opal Capital came on, they shared you some of their thoughts on investing in a world where we have the geopolitical risk that your clients are worried about today. And then Austin Lieberman came on and demonstrated some of the more robust functions of


41:07

the Y charts platform, including right now at this time of the year, it's very important to take tax considerations into account when you're having your client meetings and Y charts can help you do that. Make sure you download that report by going to Y charts.com or clicking the links below.



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