New on the Pod
Michael Batnick spoke with Jon Stein, founder of Betterment, who is back with a new company, Warmer, a platform for helping people find the right human financial advisor. It's a fascinating moment to build it, with AI increasingly able to deliver quality advice to that same mass affluent client. So where do human advisors fit in — and what does Warmer get right that so many advisor-matching platforms have gotten wrong? (Listen)
Good Stuff This Week
Gif by TallBoyz on Giphy
AI tools are going to level the playing field. Clients (and prospects) are going to have access to tools that advisors would have killed for a couple of years ago. That is why as Carlson says: “Qualitative skills are the future now more than ever.” AI can provide useful information, but the challenge is crafting an individualized plan that can work through life’s ups and downs.
Gif by tophermcgee3 on Giphy
Financial planners are great at modeling portfolios. Unfortunately a client’s human capital is often, at best, a guess. Human capital is important in the options that it can open up. As with many financial planning topics, human capital is a jumping off point for future discussions.
The Rest of the Story
Private Fund Due Diligence: A Checklist For Reviewing Governing Documents And Operational Controls. (Kitces.com)
The Fragility of Semi-Liquid Private Credit Funds. (SSRN)
On financial matters AI models are ‘approximately right’ but can be wrong for any individual. (Larry Kotlikoff)
The endowment effect is real, for clients and advisers alike. (Meghaan Lurtz)
The single most important factor for the housing market. (Mark Rzepczynski)
How to ask for help from people you don’t know. (Pradyumna Prasad)