Overview of Last Meeting in 2008

The Young Financiers met one last time before the end of the year on Tuesday, November 11th. There have been some newcomers this year to the group and they have contributed to the conversation significantly as well as provided office space for the meeting.

The most recent meeting was meant to discuss topics such as:
-Asset Allocation
-Re-Balancing
-"The Bailout"

These items were discussed as well as other items that came onto topic. It is interesting to see how different the views are on various ideas. There is definitely "more than one way to skin a cat" as they say. For example, one member discussed using single position stocks to build portfolios, while other members delegated the investment task to portfolio managers outside the firm. One member dealt with Tenants In Common for his clients and others used REIT's.

One topic of discussion came up that was fairly significant: variable annuities. This was interesting because they have been a very controversial financial product and there is a mix of advisors who use them and those who don't. The majority of the members at the meeting used VA's for a portion of their clients' assets. The group that this conversation may outcast would be the fee-only RIA group. Since VA's payout commissions, in the past it was not something they used. There are more and more products entering the marketplace that are catering to the fee-only channel. The question is: are they as competitive in cost and in benefit to their counterparts? One favorable benefit that was mentioned was the guaranteed lifetime income stream that could be provided to clients so they would not run out of income. This will definitely continue to be a topic of interest moving forward in the profession.

There was also discussion of the various Financial Planning Programs that students had been enrolled in. Members who were involved in these programs were present: DePaul, Boston, and Florida State. Members who were not present had taken the AFPP at ASU, the College for Financial Planning, and Jeff Rattiner's Fast Track. The main item people got out of this particular part of the discussion is it didn't necessarily matter which program you went through because the student ultimately determined how much they wanted to get out of it. They all provide similar material. It is a matter of the drive of the individual.

Looking at future meetings, there is definitely a need for more of what the Young Financiers do. This is especially important in trying times like these. This is about the camaraderie that is developed between members. When someone has a question, they know they can turn to this group to help answer it. The members need to be resources for one another and they will grow in the process.