You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Conquest Planning, the artificial intelligence-powered, Canada-based, financial planning platform founded by Mark Evans (creator of Naviplan) has announced Chief Revenue Officer Brad Joudrie as CEO effective Jan. 1, 2026. Founded in 2018 and launched into the Canadian market in 2020, Conquest first rolled out to American advisors in mid-2022. In June, the company announced it raised an $80 mill ...

Core Insights - A 2025 Northwestern Mutual survey indicates that Americans believe $1.26 million is necessary for a comfortable retirement [1] - A 2022 Federal Reserve survey shows that Americans aged 65 to 74 have a median retirement savings of $200,000, highlighting a significant gap [2] Financial Planning - The decision to hire a financial planner has both advantages and disadvantages, particularly for those nearing retirement [3] - Approximately 27% of Americans utilize a financial advisor or planner, suggesting a recognition of the value of professional financial guidance [4] - Financial professionals can provide objective advice, which is crucial in managing assets, especially during unforeseen life changes [5] - A financial advisor can help prepare for and manage potential long-term care costs, which can average $77,792 per year for home health aides and $127,750 annually for nursing home care [5] - Even individuals with substantial assets, such as a $2 million portfolio, may have blind spots that a financial professional can help address to ensure income generation and resilience against market fluctuations [6]

Core Viewpoint - The article discusses the potential benefits of an all-equity investment portfolio compared to traditional balanced portfolios, suggesting that a 100% equity strategy may lead to better long-term retirement outcomes [2][4][6]. Group 1: Portfolio Strategies - Traditional 60/40 portfolios are being challenged by a proposed 50/30/20 split, with some advocating for a 100% equity portfolio as a more aggressive investment strategy [1][2]. - Research indicates that portfolios with a mix of domestic and foreign stocks may provide better diversification than those including bonds, regardless of the investor's age [2][4]. Group 2: Performance Analysis - An analysis of stock and bond returns from 39 countries from 1890 to 2023 shows that an all-equity portfolio outperformed balanced portfolios in terms of retirement wealth, income, capital preservation, and bequest at death [4]. - The all-equity strategy reportedly delivers 50% more retirement wealth on average compared to balanced portfolios [6]. Group 3: Risk Considerations - While bonds are often viewed as safe diversifiers, their long-term performance is considered unfavorable, as they become riskier and more correlated with stocks over time [3][4]. - The key risk for all-equity investors is volatility, with historical data indicating that markets can take significant time to recover from downturns [5].

Core Insights - The best time to start saving for retirement is as soon as one enters the workforce, allowing for more years of contributions and the benefits of compounding growth [1] - It is rarely too late to improve retirement savings, but there is a critical window where building a sufficient nest egg becomes significantly more challenging [3] - The urgency to save increases in the mid-to-late 50s due to the proximity of retirement and the reduced time for compounding to take effect [4] Retirement Savings Strategies - Aggressive saving can still be beneficial even in the early 60s, but may require additional strategies such as reducing expenses, delaying retirement, or downsizing [5] - Overdependence on Social Security can lead to financial problems, as it typically only covers 30% to 40% of a retiree's budget [5] - Delaying retirement savings can result in reduced lifestyle options, increased stress, and a smaller financial safety net, exposing individuals to greater financial risks [5]

Core Insights - The article discusses the benefits of having excess savings for retirement and the potential to leave money to heirs, highlighting the characteristics of individuals who save significantly throughout their lives [1]. Group 1: Who Saves the Most? - A study by the National Bureau of Economic Research indicates that married men tend to work and save substantially throughout their lives, while married women's labor market participation peaks in middle age [2]. - Single men experience a decline in labor market participation and savings after age 40 compared to their married counterparts, while single women work less and accumulate less wealth [2][3]. - Couples possess more than twice the wealth of singles at all ages, and wealth decreases only modestly after retirement [3]. Group 2: Wealth Management After Retirement - The study reveals that retirees spend only a modest amount of their wealth, which contrasts with traditional life-cycle models, primarily due to a desire to save for medical expenses and to bequeath wealth [4]. - Wealthy individuals tend to live longer, which allows them to retain greater wealth as they age [5]. Group 3: Strategies for Saving More - To save more for retirement, individuals are encouraged to start saving early, as small amounts can grow significantly due to compounding interest [6][7]. - Being aggressive in investments, particularly in riskier assets like stocks, is recommended for those with 10 or more years until retirement, transitioning to more conservative investments as retirement approaches [7]. - Automating retirement savings and maximizing contributions to tax-advantaged accounts such as 401(k)s, Roth IRAs, and HSAs are advised strategies [7]. - Seeking guidance from a fiduciary financial planner is suggested for those uncertain about investment choices [7].

Core Insights - Annuities are presented as versatile financial products for retirement planning, offering guaranteed income, tax-deferred growth, and market downturn protection, but they come with various fees that can impact returns [1][2] Summary by Categories Annuity Features - Annuities provide guaranteed income throughout retirement, tax-deferred growth, and protection from market downturns, making them appealing for retirement planning [1] - The complexity of annuities includes various types such as immediate, deferred, fixed, and variable, each with different fee structures [4] Fees and Costs - Some fees associated with annuities are legitimate costs for services, while others may primarily benefit the insurance company at the expense of the investor's returns [2] - Common fees include surrender charges, which act as penalties for early withdrawal, and mortality and expense (M&E) charges found in variable annuities to cover lifetime income risks [5][6] - Administrative fees related to contract management, such as customer service and recordkeeping, are also expected [7] - Investment-related fees are typically found in variable annuities, where growth is linked to market performance [7]

Core Insights - Long-term care costs, particularly for nursing homes, can significantly deplete retirement savings, with the national average cost for a semi-private room exceeding $94,000 per year [3] - Medicare offers limited coverage for nursing home stays, primarily for short-term rehabilitation, while Medicaid serves as a primary payer for long-term care, subject to strict financial eligibility criteria [4][3] - Medicaid eligibility is determined by income and asset limits, with individuals typically allowed no more than $2,000 in countable assets, and married couples having different asset retention rules [4][6] Medicaid Eligibility and Planning - Medicaid is a means-tested program, requiring individuals to meet specific income and asset thresholds to qualify for nursing home coverage [4][6] - Asset transfers to trusts or other entities can be strategies to qualify for Medicaid, but a five-year lookback period applies, scrutinizing any transfers made within that timeframe [7][8] - Proper planning, including the use of special trusts, home equity transfers, and annuities, can help protect assets from Medicaid spend-down requirements [8][9] Financial Advisory Role - Engaging a financial advisor is recommended for individuals planning for long-term care expenses, as they can provide guidance on eligibility strategies and asset protection [2][4][9]

Core Insights - The article discusses the financial planning necessary for achieving early retirement, emphasizing the importance of personalized strategies and realistic budgeting [1][2]. Group 1: Planning for Early Retirement - Early retirement requires extensive planning, considering factors such as desired lifestyle, remaining debt, taxes, and additional income sources [4]. - It is crucial to avoid relying on average retirement figures, as individual circumstances vary significantly [4]. - Engaging with a financial planner is recommended to tailor retirement strategies to specific goals [4]. Group 2: Financial Strategies - The 4% rule is a widely accepted guideline for estimating retirement savings needs, suggesting a safe withdrawal rate of 4% annually from a retirement portfolio [5]. - For example, a portfolio of $1 million allows for an annual withdrawal of $40,000, sustaining funds for 30 years [6]. - Financial experts recommend a more conservative withdrawal rate of 3% to 3.5% to provide a larger safety net [6]. Group 3: Saving and Investment Tips - Aggressive saving should begin in one's 20s or 30s to build a substantial retirement fund [7]. - Maximizing contributions to retirement accounts such as Roth IRAs and 401(k)s is advised [7]. - Diversifying investments through alternative options can enhance financial security [7].

Core Insights - AI is increasingly being deployed in financial planning, particularly in personalized marketing, lead nurturing, portfolio rebalancing, and compliance monitoring [1][2][3] - The role of financial advisors is evolving from tactical tasks to providing holistic guidance, emphasizing human expertise and trust [2][4][10] AI Deployment in Financial Planning - Personalized marketing and lead nurturing are identified as top AI use cases, with firms planning to increase spending in these areas [1] - AI tools assist in portfolio rebalancing, scenario generation, tax recommendations, cash flow modeling, and compliance anomaly detection [1] - A wealthtech survey indicates that 68% of advisors currently use AI applications, with 43% planning to increase their investment [3] Changing Role of Financial Advisors - Advisors are shifting focus from tactical work to areas where human judgment and trust are paramount, such as behavioral coaching and values-based guidance [2][4][5] - The advisor's responsibilities now include overseeing AI usage to ensure transparency and protect client data [5][10] - Advisors are encouraged to expand their capabilities and reframe their value proposition around helping clients achieve life goals [6][10] Limitations of AI - AI tools, such as ChatGPT, have limitations and cannot fully replace human judgment; they require human oversight to ensure effectiveness [8][9] - The experience with ChatGPT highlights the importance of distinguishing between tasks suitable for AI and those requiring human intervention [9] Future Outlook - The integration of AI in financial planning is expected to redefine fiduciary duties rather than replace fiduciary advisors [10] - Advisors who embrace AI as a supportive tool while maintaining human qualities will be better positioned for future success [10][11]

Core Insights - The article emphasizes the importance of automating savings to help individuals manage their finances more effectively and avoid impulsive spending [1][4][5] Group 1: Automation Benefits - Automation allows individuals to regularly funnel money into savings and investment accounts without needing to remember to do it manually [2][4] - It helps alleviate the feeling of "losing" money when transferring funds from checking to savings, as the process is seamless and often unnoticed [5][6] - Setting up direct debits creates a commitment to save, allowing savings to occur in the background without daily attention [4][6] Group 2: Implementation Strategies - The ideal time to automate savings is immediately after payday, once essential expenses have been covered [6] - Identifying specific savings goals (short-, medium-, and long-term) can enhance the effectiveness of automation by directing set amounts toward each objective [7]