reminders!! · active trading strategy which would involve short-term capital gains. • results in...

FRESHEN UP FRIDAY FRIDAY 26th AUGUST, 2016

PRESENTED BY JACK PETERS

National Headquarters | 11726 Seven Gables Road | Symmes Township |

Cincinnati | OHIO | 45249

P: (513) 984-9933 | F: (513) 984-5219 | E: [email protected]

www.hortertrustedadvisors.com

• Market Madness 8/29 with Rich Paul • New Assistant training every Tuesday 3pm

EST.

Several Elite Advisors have agreed to attend future Advanced Trainings (at least 2 per meeting) to talk about their experiences with Horter!! Please notify Pattie if you will be attending training at (513) 984-9933 or by email at [email protected]

Reminders!!

mailto:[email protected]





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4 Hour 6 Hour



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What Does Retirement Look Like To You?

Will You Have Enough To Do What You Want?

Retirement

Market

Longevity

Death of a Spouse

Nursing Home/

Long Term Care

Interest Rates

Inflation

Horizon

Credit

What Are The Risks?

What Is A Fiduciary?

A fiduciary is responsible for managing the assets of another person, or of a group of people. Asset managers, bankers, accountants, executors, board members, and corporate officers can all be considered fiduciaries when entrusted in good faith with the responsibility of managing another party's assets. A fiduciary's responsibilities are both ethical and legal. When a party knowingly accepts a fiduciary duty on behalf of another party, they are required to act in the best interest of the party whose assets they are managing. The fiduciary is expected to manage the assets for the benefit of the other person rather than for his or her own profit, and cannot benefit personally from their management of assets.

SOURCE: Investopedia

Module Overview HISTORICAL INVESTING

To provide you with the tools and insight to build a solid retirement plan and help you achieve your retirement goals.

1. Stocks & Bonds

2. What is Diversification?

3. What is Asset Allocation?

4. Buy & Hold and other Myths

5. The 4% Rule

Buy And Hold

A buy and hold strategy: • Is the simplest form of portfolio management. There is no rebalancing with such a

strategy, which reduces transaction-related costs. • Typically ends up in lower taxation rates due to long-term holding periods versus an

active trading strategy which would involve short-term capital gains. • Results in few overall expenses related to management, taxation and transactions. • Generally buys high quality securities to finance a long-term goal or need, such as

retirement.

A buy & hold strategy is a portfolio management strategy in which the investment manager or investor designs a portfolio and purchases appropriate investments to fit that portfolio, the holds the investments with the anticipation of appreciation and income.

SOURCE: http://video.cnbc.com/gallery/?video=3000158038 – April 2013

Low of 17.29 per share

Low of 18.11 per share

Height of 35.91 per share


35.91 – 17.29 = 18.62

18.62 ÷ 35.91 = 52 37.49 – 18.11 = 19.38

19.38 ÷ 37.49 = 52

-52% -52%

SOURCE: Yahoo Finance

AGTHX American Funds Growth Fund

of Amer A

DISCLOSURE: Past performance is no guarantee of future results. Investments are subject to risk, including market and interest rate fluctuations. Investors can and do lose money.

Low of 75.26 per share Low of 67.99

per share



140.33 – 75.26 = 65.07

65.07 ÷ 140.33 = 46 142.83 – 67.99 = 74.84

74.84 ÷ 142.83 = 52

-46% -52%

SOURCE: Yahoo Finance

VFINX Vanguard 500 Index Inv

DISCLOSURE: Past performance is no guarantee of future results. Investments are subject to risk, including market and interest rate fluctuations. Investors can and do lose money.

SOURCE: https://us.spindices.com/search/?ContentType=SPIVA

SOURCE: http://seekingalpha.com/article/229972-core-satellite-a-way-to-step-into-tactical-asset-allocation

Going Risk Off To Cash…..

SOURCE: http://seekingalpha.com/article/229972-core-satellite-a-way-to-step-into-tactical-asset-allocation

TACTICAL INVESTING

On January 31, 1940, the first monthly retirement check was issued to Ida May Fuller of Ludlow, Vermont, in the amount of $22.54. Miss Fuller, a Legal Secretary, retired in November 1939. She started collecting benefits in January 1940 at age 65 and lived to be 100 years old, dying in 1975. Ida May Fuller worked for three years under the Social Security program. The accumulated taxes on her salary during those three years was a total of $24.75. Her initial monthly check was $22.54. During her lifetime she collected a total of $22,888.92 in Social Security benefits.

Ida May Fuller 1st Recipient of Social Security

SOURCE: https://www.ssa.gov/history/idapayroll.html

Case Study One

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 TOTAL

+35% -25% +35% -25% +35% -25% +30%

+15% -5% +15% -5% +15% -5% +30%

Looks like you end up with the same amount…….or does it?

THANK YOU!



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DOL Fiduciary Rule • By April 2017 Investment Advisors must adhere

to the impartial conducts standard to take advantage of the BICE.

• This includes:

1) Acting in the retirement client’s best interest

2) Avoiding misleading statements

3) Not receiving unreasonable compensation



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Reasonable Compensation

• Several factors determine reasonable compensation: – Market pricing of services and assets

– Cost and scope of monitoring

– Complexity of the products

• Likely to lead to a period of product and platform innovation. – Accelerate shift from commission-based accounts to

fee-based accounts

– Reduction in VA expenses and commissions



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Reasonable Compensation

• We are evaluating current compensation arrangements between Horter, our investment advisers and solicitors and third party money managers to understand whether revisions are required to meet reasonability requirements.

• Primarily an issue with regards to FIA’s (commissions), but also evaluating as it relates to AUM revenue in IRA/401K accounts.



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DOL Fiduciary Rule Opportunities?

1. Less Advisors To Compete With.

2. Our Marketing Niche: a) $250,000 – $1.5M Clients Are Being Left Behind

3. Buy Out Small Advisor

4. Riskalyze Integration For: a) Client Risk Score A Must b) Sending Link To Clients & Prospects c) Cloud Scoring Maintenance d) Scoring Prospects’ Existing Portfolio

5. For FIA’s Horter Investment Management Is A Financial Institution By The DOL: a) Defining HIM’s Role With FMO’s b) Defining HIM’s Responsibility With DOL And FMO’s c) Group E&O And DOL Responsibilities



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DON’T FORGET!!

MARKET MADNESS

MONDAY, AUGUST 29th AT 11:00am (EST)

We look forward to seeing you there!!



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© 2016 Horter Investment Management, LLC

All rights reserved. The following material is the property of Horter Investment Management, LLC. This material is provided as a courtesy to our

Investment Advisor Representatives for their reference only. Unauthorized use, duplication or

distributions of this material without express and written consent of Horter Investment

Management, LLC is strictly prohibited.

THANK YOU!





reminders!! · active trading strategy which would involve short-term capital gains. • results in...

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