YouSaid · the spoken record

Ron Rhoades

lines on the record: 121
first: 2016-01-15
most recent: 2016-01-15
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“This whole concept that a lot of uncertainty out there still, and we shouldn't be telling clients, you're going to retire at 58. We ought to be telling clients. I can help you retire early. I don't know when that will be, but I know that if you followed my advice over the long term. If you stick with this discipline process that we're going to implement, then I know that you will be able to achieve whatever your lifetime goals are. Faster and better. And that's the type of promise that we ought to be telling our clients, not giving them such a hardline, this is when you're going to accomplish something.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“One thing uncertainty. It is prevalent, it is with us, it will always be with us. I'm amazed at how many financial planning programs are set up to say or we design a portfolio so that you can retire by the time you're 58 Well guess what you know there's a lot of uncertainty about the future of returns I think innovation is going to be great in the United States as long as we fuel it with a lot of capital. We apply a fiduciary standard, we remove this rent extraction that Wall Street does. Over time that's going to lead to greater capital accumulation in the United States and help propel our economy forward. So I'm very optimistic about the US economy compared to, I guess, most of my fellow colleagues over the next decade, over the next two, three decades.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“and learn all that you can, absorb whatever you can. Once you have that couple years of experience in this industry and you've invested in yourself that way, you can write your own ticket. And hopefully you'll stay with the firm that you join and they will have a career path for you and you see your future with that firm, you enjoy that firm, but if that doesn't work out and you have invested in yourself and the firm has invested in you, then you are a very marketable person right now in terms of the demand for experienced financial planets right now.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Find a firm that's going to invest in you. Don't say, I'm going to go hit the ground running and be able to do everything that I have full-blown financial advisor needs. Really think about the first year, perhaps the second year, as a residency process. Work extremely hard. Get your certified financial planner certification done in that first year. Probably by the end of the first year. In addition to whatever licenses that you need, work hard, think about it as a medical residency, working not perhaps that hard, but hard.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I think If you can remove interest rate risk or at least manage it substantially in this type of environment with this laddered approach that you're talking about, that is probably the best fixed income strategy for the next decade.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly remove that. I'm a little suspect about the whole concept of longevity annuities. I think that... It's a great concept. You pick up the mortality credits, and it does assuage the fear of that, but I think you're giving up a lot. And a lot more research, I think, is needed in that area as to whether or not that really fits very well with the rest of a portfolio.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Immediate fixed income annuities. Okay. So retirees should probably take a portion of their wealth. Annuitize it. Maybe not all in one chunk, maybe over times. Early retirees with an inflation writer.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“To a large degree, variable life, variable annuities, the cost structure is more transparent than whole life, universal life. Equity index annuities, there's really no transparency. It's a great concept, but the implementation of it has been poor. And it makes tough, really tough for a fiduciary to recommend an equity index annuity right now. I haven't found one that I'm comfortable recommending. Immediate annuities, they got to be used a lot more often.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, I think going forward it's fairly predictable that as the fiduciary standard comes into play, high cost variable annuities are going to disappear. Equity index annuities. I love the concept of As a fixed income alternative, I think they mark it incorrectly. The cost structure is not transparent at all. The control the insurance company has over it is not correct.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“What have you Seven major themes, and I'll just go into two of them. One is invest in yourself. But the other one is probably the best illustration of how to do this. The best explanation is live below your means. The parables that are surround that, and there are actually two or three on that theme, are fantastic. And I will buy that book and give it to clients or the sons and daughters of clients, especially those who are getting ready to graduate from college. say you really need to read this and hopefully they do and some do and they gain knowledge from it. It's also pretty interesting wedding gift by the way that's fascinating”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Very readable. I use that undergraduate. And Roger Gibson's more of a graduate level professional type view of that. But the other one is a book that's almost 100 years old now. You can find it on the web for free.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“But if I had to say two books that if you had only two books on your bookshelf One of them ought to be Roger Gibson's asset allocation.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is another scorched ear Damage, no survivors. He I guess for beginning investor, I'd like what Wall Street doesn't want you to know. I think it was like his first or second book. You know, I actually had my students read the incredible shrinking alpha last semester.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Great books. I go back and reread those books And Larry Swedrow's stuff, he tends to come out with about a book a year. Swedrow.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That was gripping. Without a great on the nonfiction side, the investment side, you know, I like authors like Peter Bernstein, of course. Fantastic. Larry Wedrow, Rick Perry.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would say Cardinal the Kremlin probably the first one I read So that remains one of my favorites The Hunt for Red October was a good one.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's my showbrush, yeah. You know, economic incentives matter, and they matter a huge amount in financial services. If you're a fiduciary, you have got to set yourself up that you're not driven by these incentives to do something bad for a client. And that means removing conflicts because if you have a conflict of interest, that is going to infect your judgment, maybe unconsciously. You're going to somehow over time self-justify doing something bad to a client if you have an economic incentive to do it. And that's the purpose of the fiduciary standard, is to remove those economic incentives to still be paid as an expert, as a professional. You deserve professional level compensation. No question about it. But to remove the economic incentives that really would cause you to do things that would harm the client in some way.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It takes time of paperwork time and also educating the client and training the client in that first year. And you simply don't make that investment with a client unless you're really, really confident that that's going to be good fit for you.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think screening clients to make sure that they fit with you Fit with your Fern's philosophy, but also fit with your personality. There were clients who came to our firm that I wasn't a very good fit with personality-wise, but one of my partners was a good fit with him. And I think that the idea of having a firm that you have shared client relationships with is a tremendous opportunity to secure more clients. But there are probably 10%, 20% of the people out there who will never embrace the investment philosophy that you might be using or the manner in which you serve clients. And you have just got to be honest and say, we think you might be served better elsewhere. And if you take on those clients, if your screening process, I like to say clients don't only view us. We interview them.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, you know, we had clients who were going to cancel their vacation trips, 70 years old, gonna go on a cruise down a river in Europe. And our response to them is absolutely not. Now we've looked at your portfolio. You can still do this. Your retirement's still secure. Go do this.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So at the time, the firm I was with, and when I went to teaching, I sold my interest in the firm to my partners, we had 130 clients. 127 of them did what we asked, which the market was going down, we bought, and went down further, we bought. On March 9th, just by fortunate luck, we bought again. The clients reaped the benefits of that. A lot of the financial behavior side of this. And it doesn't matter if you're a robo advisor or if you're a hands-on, have a deep relationship with a few clients. Is preparing clients for what's going to happen in advance and getting them to remember that they committed to following this plan.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And they would be that to me. And of course, getting them to sell usually wasn't very difficult. Taking gains off the table. Of course, the downturn happens. Bilo, a little bit more difficult when they don't think the world is going to exist next week to get them to buy when things are really low.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, every investor needs to have this plan, investment policy. That says, you know, we don't know if the market's going to go up or down, but we know how we're going to react to it. And we know that we need to keep these four words in mind. And I used to hold client conferences when I was working in a firm. And, you know, you do the luncheon and you bring in 30 clients and you have a nice luncheon or dinner. And I would have all the clients stand up and repeat after me very loudly these four words.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Engineered go down the whole run of them. Right. And there are some specific products that are pretty good. But in terms of the overall platform. I know it takes something to be able to access the Mishnel's funds.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And if you're an advisor and you're not working with dimensional funds advisors, I'm like saying, why aren't you? I look at the universe and say dimensionals at the top. Vanguard is number two. And then there's a huge falloff after that. In terms of The way that the mutual funds, for example, or other investment products are designed.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“The Committee for the Fiduciary Standard, that award is now given And so it was the first time they gave that award. I had done some assistance with some of their projects relating to the lobbying the SEC or educating the SEC, I should say. So it was a nice surprise to get that year. But come back to the questions other influencers on the finance side, Gene Fama, without a question. I admire David Booth for taking this academic approach to investing and building this huge firm out of it, dimensional funds advisors”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“On the fiduciary front, without a doubt, the single most influence is Professor Tamara Frankl, Boston University College of Law, and she's been writing about fiduciary law. She's in her eighties now still teaching, and she's just a wonderful writer and fiduciary, all things fiduciary.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“In terms of the assignments that the case study methodology he uses, the amount of workload, and yet the students, they have this enormous respect for him. They want to please him. They come out of his class learning so much. And just to be around these two individuals and the other finance faculty at Western Kentucky University, it's really... It's been already just one semester there has been this tremendous experience and I'm looking forward to more.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right. And I think that's completely true. This is a very time-consuming profession to stay abreast of what all the changes that happen. It's a nice challenge, actually. And this need to make a full commitment to being an excellent financial planner. Those words meant a lot. And I think some other people that probably influenced me, probably a couple of the professors that I work with now. One is Andrew had his young professor. Really, the reason I joined Western Kentucky University, he has this way of captivating the students in his classes. I've seen him do this, and also connecting with students on a one-on-one basis that I'm just absorbing his lessons on that. And then there's Dr. Induch Probably the toughest finance professor in the world.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So Harold Levinsky has a firm Avinsky and Katz down in Coral Gables. I like to call him the wise sage of the profession. He was chair of the CFP board probably 15 years ago. He's a professor at Texas Tech in the Masters program there, Master of Financial Planning. He's just full of insight. He's written several books. Fifteen years ago, I'm sitting at an AICPA conference on financial planning thinking about getting into the industry. And he said something I'll never forget is if you're going to become a financial advisor, commit to it fully. Don't do this part-time.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh. I think we take a little bit if we're smart, we take a little bit of all the good things from almost every person that we have a significant relationship with. People that have probably influenced me the most I'd say one was Harold Levinsky.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or is that an exaggeration? No, I had it tucked away. Really? You know, you have so much padding in those bear costumes, it's easy to carry a book. You're usually going from one part of the park to the other. Right. When you're in a costume, you get all stage, you remove your costume where most of it, and that's when I pick up the book. rehydrating myself and catching my breath for the next 30 minute set. That's when you pull out the book and read it.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That the rules on suit I've actually seen Fioni affirms hire brokers, exceptional people, smart people, bringing them into the Fioni fiduciary side, and they never adopt to the fiduciary mindset. They never understand what it means to really put the client's interest first. They think that best interest means as long as I recommend a decent product I'm okay. But it is a big transition from a sales culture to fiduciary culture and some people just simply can't make that transition.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Going away. You know, I got all these clients with IRA accounts. I don't want to practice on their fiduciary environment. I was going to retire in two years anyway. Really? I'm leaving.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Trillions of dollars. Now you hit the Department of Labor What's that going to do? One is a lot of the old brokers are going to say, I don't want to deal with this. I'm out of here. I'm retiring.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a huge amount of marketing going on there, and that's hard to overcome. But I think your forecast is right because it's been happening gradually. And right now, the investment, independent investment advisory firms, independent broker-dealer firms are going to have as much market share next year as the Wall Street firms, the wirehouse firms are.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the top senior partners may make a million a year. And a financial planning firm, but not 10 million a year. Because they're just great at selling the high net worth clients. That's going to disappear.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, you can have basically the professional services model out there. We have a lot of junior partners, a lot of associates, and you give advice that way, and you take some of their fees, and the senior partners make more money of professional services firm environment.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the investment fees will come down, and I think what we're going to see is a split between investment advice, which to a degree can be commoditized. At least it's scalable And find the interplanning advice, which really is not scalable. It is very time intensive. It's expertise intensive.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Pretty close to it. And you've got variable annuities that have very high cost structures and very high ongoing compensation. And equity index annuities, some of them paying 10, 12% commissions or more. Wow. You apply a fiduciary standard to this and you create this army of purchasers representatives. And kind of what you were alluding to, it's going to cut the asset manager's fees dramatically. Asset managers are coming out with more and more products every day for fione advisors, but the fees and costs have to be transparent. And they need to be a lot lower. And the asset managers, some of them are realizing this. Some of them are obviously stuck in quicksand.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Probably the majority of it is focus of insurance because the state securities regulators said, listen, if you're going to go out and sell a equity index annuity, Some morning, you're telling them to cash out of their iPhone account or whatever. You have to be an investment advisor to give that advice to cash out.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, for any substantial size portfolio, 2% is really getting up there. And what's interesting is the fielding advisors. Them prevailing in the marketplace, there's not enough of them right now”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Percent a year, right? 2% a year of the assets that they manage. That's just not going to happen. That's not going to happen under a fiduciary standard.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“If I was a wirehouse right now, I'd be doing what the roll-ups are doing. I'd be buying registered investment advisory practices. I'd be taking the best of those practices, forming a large RA firm amount of it. I'd be transitioning brokers out of the current environment or the dual registrant space over to this fee-only RA only space. And allowing that to happen, allowing this transition to happening, giving those people who say, I don't like this brokerage environment anymore, a place to go There's a little bit of that going on, but it's not as pure as I would say it needs to be. And it's not promoted as much as it should be.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You're only going to be a registered investment advisor. You're not going to sell any products. We're going to set up some Chinese walls when it comes to, for example, buying bonds and buying it out of our own inventory. We'll have a different trading desk that surveys the universe, including our offerings for that. You really need to take a look at your structure and pretty much commit to having a For these people to work under”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“If you get away from the dual registrant and you go to a strict fee-only conflict-free environment, The amount of complaints falls 90% dramatically. Your liability insurance per advisor goes down dramatically because it's just not that much exposure. As you said, your compliance costs fall. You still need compliance systems, but they set up differently. And really, the only way for the wirehouses to make this transformation is to really create units of fi-only advisors.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“All right. So, you know, I see the movement and I see that they were recruiting a lot of the firms are recruiting individuals to teams now, that the newer teams, that the younger brokers are forming teams of financial planners and entrepreneurs and those who go out and get clients and those who help run the portfolios, much more fiduciary-based, much more asset on the management base. So there is some happening, but if you want to, you can't do it part way. If you do her part way, you're just going to continue to see your market share shrink.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“These aren't It's hard to take a salesperson and adopt a fiduciary culture. And a fiduciary culture needs to be driven from the very top of the firm. Right. And there's such a big difference between a sales culture and a fiduciary culture. It's a big transformation. But I will say this. Just over the last couple years, we have seen some large firms adopt fiduciary platforms. Some of them kind of halfway. Oh, we still have some conflicts of interest, but we're going to eliminate most of them. One firm, one platform, and one firm is almost completely conflict-free. It's an asset under management using ETFs. No proprietary products, that firm has a history of not doing underwriting, but it's a fairly large firm. So I see the movement, but I'm not allowed to.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You keep up this trend. You won't have a firm for your shareholders. Right. If you have a fiduciary duty to your shareholder, you have an obligation to change. Who moved by cheese people? This is not that difficult.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I was talking about their need to evolve and how they could evolve to embrace the fiduciary standards, set up different divisions and the like. And at the end of that, the first question was, but Ron, we have a fiduciary duty to our shareholders. And my reply to that was simple and straightforward. Yes, you do. Your market share as a large firm is going down every year.”
2016-01-15 · Masters in Business · Interview With Ron Rhoades: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source