Gamma is the approximation of the value, Financial Planners add, independent from market performance, and investment security selection, and by some estimates can be over 150 basis points per annum! This includes, but may not be limited to:
- Asset Location – What types of accounts, hold which types of investments (i.e. taxable vs. Tax-deferred)
- Dynamic withdrawal strategy – Using optimal retirement spending steps which minimizes tax liability over the long-run, and improve portfolio longevity.
- Behavioral Coaching-helping people avoid their biases, and improving the accuracy of the areas of planning where educated guesses should be made—with Discipline. (David Blanchett)