Description

John De Goey is a portfolio manager at Industrial Alliance Securities. He’s also an author and a recognized Canadian authority on the subject of professional, transparent, and evidence-based financial advice. John has received numerous awards for his contributions to the financial planning field, including the Donald J. Johnston Lifetime Achievement Award. He’s also been named one of the top 50 advisors in Canada by Wealth Professional magazine.

In today’s episode, John will be talking about the assumptions advisors need to make when developing financial projections. Tune in to the episode to hear what John has to say about the key assumptions an advisor needs to make before developing any financial projections and advisors’ biggest mistakes when making assumptions. John will also share some information about his upcoming book.

Topics Discussed in this Episode:

• The key assumptions an advisor has to determine before developing any financial projections for their clients
• How to come up with reasonable assumptions about the rate of return
• The biggest mistakes that advisors make about assumptions
• How advisors can keep clients accountable
• How different expenses can change as clients age
• How taxes can affect the rate of return
• The difference between nominal rates of return and real rates of return
• The rates of return for income
• How it’s possible for the real rate of return on income to be negative
• How to approach adjusting long-term projections for different types of clients
• How to adjust long-term projections to meet the needs of clients with short-term needs
• John’s new book about the financial advisory industry, coming out in late 2018

Links:

John De Goey

John on Twitter

Projection Assumption Guidelines

The Professional Financial Advisor III: Putting Transparency and Integrity First

Quotes From John:

“The thing that I think is most important, and this is where the rubber hits the road, is the rate of return that you should be expecting when you actually do these projections.”

“I don’t think it serves anyone’s purpose to be unrealistically optimistic.”

“The mistake that advisors make is tha...