It’s also important to understand a person’s consumption and bequest motives. Rather than asking that directly, he said, make it into a game. Take 60 poker chips and put them in six boxes labeled age 70 to 75, 75 to 80 and so on until 95-100. Have the clients place the poker chips based on how they want to enjoy the chips over the next three decades. Asking the clients the reason why they placed the chips the way they did will give the portfolio manager clues on consumption and bequest motives without using those phrases, he said.
"How people spend their portfolio can depend on other things in their life. You can find out about legacy and bequests without having to say those words,” he said.
Ultimately, the most important thing portfolio managers need to remember is the objective is to maximize the sustainability of income, which he said is best done by a mix of insurance and assets.
“There is no silver bullet,” he said.