A Financial Planner's View of Factor Investing
Two Quants and a Financial PlannerJuly 17, 202300:40:21

A Financial Planner's View of Factor Investing

Asset managers who build factor investing strategies can sometimes have a difficult time seeing how those strategies are used by financial planners who build portfolios with them. In this episode, we look at that issue from both sides as we ask Matt how he thinks about using factor portfolios for clients and we have an opportunity to answer some of his questions about how we think about building them.

00:00 - Intro
02:31 - What are the key attributes of a good factor?
05:51 - What do the lottery and factor investing have in common?
08:15 - How asset pricing models and risk factors work
09:50 - How Matt explains factor investing to clients?
13:17 - If you want awesome, you need to live with the risk of awful
15:37 - How Matt balances clients between active and passive strategies
20:02 - Do factors work better in small-cap stocks?
22:28 - The importance of getting what you pay for in factor investing
24:00 - Tying factor investing to purpose
28:33 - The importance of aligning your portfolio with your beliefs
29:31 - Using factors to boost withdrawal rates in retirement
33:47 - How Matt thinks about figuring out if clients can deal with underperformance in advance
36:57 - How much detail does Matt get into with clients regarding factor strategies?

ABOUT THE PODCAST
Learning how to be a financial planner is one thing. Doing it is another. Follow along with new financial planners Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau) as experienced veteran Matt Zeigler (@cultishcreative) helps them navigate the complex world of financial planning and learn about the most important topics that impact all of our financial futures. From investments to retirement to college planning to estate planning to insurance and beyond, we will cover the major financial planning issues that impact all of our lives and will provide a framework to help investors tackle them. We hope you will join us on our learning journey.

SEE LATEST EPISODES
⁠⁠⁠https://www.validea.com/the-education-of-a-financial-planner-podcast⁠⁠⁠

FIND OUT MORE ABOUT SUNPOINTE INVESTMENTS
⁠⁠⁠https://sunpointeinvestments.com/⁠⁠⁠

FIND OUT MORE ABOUT VALIDEA CAPITAL
⁠⁠⁠https://www.valideacapital.com⁠⁠⁠

FOLLOW BEN
Twitter: ⁠⁠⁠https://twitter.com/NikkoT3
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/ben-tuscai-cfp%C2%AE-075a0075/

FOLLOW MATT
Twitter: ⁠⁠⁠https://twitter.com/cultishcreative⁠⁠⁠
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/matt-zeigler-a58a0a60/

FOLLOW JACK
Twitter: ⁠⁠⁠https://twitter.com/practicalquant⁠⁠⁠
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/jack-forehand-8015094⁠⁠⁠

FOLLOW JUSTIN
Twitter: ⁠⁠⁠https://twitter.com/jjcarbonneau⁠⁠⁠
LinkedIn: ⁠⁠⁠https://www.linkedin.com/in/jcarbonneau⁠⁠⁠