Monday, October 1, 2012

FPA Experience report, September 30

This message comes from San Antonio, Texas, where I'm attending the Financial Planning Association's annual conference, FPA Experience.

It was a very interesting and eventful day.

It started with a meeting among the academics at the conference.

This was followed by a session from Jonathan Guyton, in which he presented some initial results about the case for retirees in the year 2000. He made two adjustments to the traditional constant inflation-adjusted withdrawals with a fixed asset allocation approach. He incorporated his decision rules to adjust spending either upward or downward when certain triggers are met based on market performance. These are the rules he developed in Guyton (2004) and Guyton and Klinger (2006). Also, he incorporated asset allocation changes based on market valuation levels, which he graciously cited as coming from Kitces (2009) and Pfau (2012). As far as a know, this is the first attempt for someone to incorporate both types of dynamic policies at one time. He found that after 12 years, retirees following these dynamic strategies would have been able to withdraw more, have nearly as much remaining wealth, and have  a more sustainable withdrawal rate entering the year 2012.

Then was a nice lunch with another professor in attendence.

Then I enjoyed Bill Meyer and Bill Reichenstein's presentation on Social Security, the basic outlines of which I've discussed here before.

This was followed by a special retirement ceremony for Marv Tuttle from the FPA, and a very motivational speech by Sal Guinta, a recipient of the Medal of Honor. Both men are native Iowans. Also in the ceremony, I was awarded the Journal of Financial Planning's Montgomery-Warschauer award for an article published last year in the journal. This was for my "safe savings rates" article. Here's the award:



Today I also got my first glimpse of the October issues of two magazines, of which I was surprised to see that I made the cover of both. In Financial Planning magazine, I am a recipient of the Portfolio Innovator Award as a part of their annual Influencer Awards. In the October 2012 JFP, the cover story is a roundtable discussion which I was very honored to join with Michael Kitces, Jonathan Guyton, and Bill Bengen:



I suspect that the links to both of these articles will be available soon.

After this, I enjoyed dinner with Dan Moisand and Michael Kitces, and then went to the Michael's Pinnacle reception where I met Mike Anderson, who made sure that I did not get back to my room before midnight. I could meet many interesting financial planners at the hotel bar.

All in all, it was a very good day at the FPA Experience conference!