Book Launch: Secure Retirement by Jacques Lussier, CFA, published by the CFA Institute Research Foundation

Lussier launches latest research published by the CFA Institute Research Foundation

Jacques Lussier, CFA past-president of CFA Montreal, began his career as a professor at HEC Montréal. He subsequently spent 18 years as Desjardins Global Asset Management’s Chief Investment Strategist. In 2018, his work and exceptional involvement was recognized through the Outstanding Contribution to CFA Institute Education Programs award.

“Jacques’s contribution to the financial literature in this field is extremely impressive. We want to make sure his efforts are rewarded and his work is widely available, so that all CFA charterholders can benefit from his research,” said Carl Robert, CFA, the current President of CFA Montreal.

Among Lussier’s publications is Secure Retirement, a recent CFA Institute Research Foundation release. On January 28, CFA Montreal organized a cocktail reception for members and key industry players to launch Jacques's new book and share his recent findings (view the photos).

Here, Jacques Lussier provides his thoughts on his latest CFA Institute Research Foundation release:

Q: What is Secure Retirement about?

A: Secure Retirement outlines an integrated retirement planning process for individuals and households over their lifetime. It analyzes the impact of various factors and risks related to savings patterns, the transition to retirement and the withdrawal stage of the investment cycle. The book also takes a fresh look at several financial paradigms that people tend to accept at face value.

 Q: How is Secure Retirement different from other books on the topic?

A: Most books about retirement provide general information and planning tips. Not this one! I’m pretty sure it’s the only publication of its kind that features a quantitative analysis framework, with each aspect supported by in-depth research.

Q: What prompted you to write this?

A: I’ve written extensively about passive management and factor investing. Four years ago, I was approached to put forward a management strategy for 401(k) retirement plans in the United States. I became thoroughly immersed in the subject and, two years later, I realized I had more than enough material to write a book on the subject.

Q: How will your findings be useful to CFA charterholders and other investment professionals?

A: Secure Retirement is the first step in providing a comprehensive analysis framework for financial professionals and developers of automated adviser and financial planning tools. My analysis covers the full risk management and mitigation spectrum. In recent years, people have focused heavily on factor investing. Now it’s time to look into long-term financial planning.

Q: What sets your financial approach apart?

A: I’m a skeptic when it comes to finance. That said, I firmly believe in the power of risk management to boost wealth. I am currently studying risk management processes that tend to have a statistically favourable impact on long-term quality of life. And it always bowls me over to see how many financial paradigms are accepted blindly without any analysis or validation. Some of these practices need a hard second look.

Q: What would be your advice for younger CFA charterholders?

A: Success often boils down to curiosity and the willingness to question generally accepted beliefs. The financial industry is evolving quickly, driven by technological advances and fundamental regulatory changes. Exchange-traded funds have brought low-cost asset management to the masses, but the next thing to look out for is how technology influences advisory services. It’s impossible to tell where things are headed. Clients with smaller portfolios are happy with robo-advisers, and financial institutions now have the ability to search and execute trades, which enables them to create custom products cheaply. The next targeted sector will therefore be private management, since the service it provides can be reproduced using advanced financial planning technologies.

I recommend that up-and-coming CFA members pay close attention to sectors that are or will be driven by technology. I would also urge them to take courses in advanced mathematics and machine learning, because that is where I think the future of finance lies.

Download Secure Retirement

Read the article published in Connexions