Baby boomer assets are the current wealth management sweet spot 1, but a growing segment of independent registered investment advisors recognizes that embedding Gen-Xers and millennials as long-term clients requires a shift in business strategy now.
Investors Perk Up As Bank CD Rates Near 3 Percent
After the Federal Reserve hiked interest rates by 0.25 percent, banks, especially online financial institutions, started to move CD rates up toward 3 percent. Is it enough to move money?Read more
A new service intends to rank advisors against one another based on performance managing money. Is it a fair and worthwhile endeavor?
New evidence shows data thieves are increasingly targeting the financial services industry. Surveys show Americans have little trust in the safety of their personal data, something experts say financial services should be proactive to correct.
The global market selloff is sounding alarms for many investors who fear a bear market. But while experts say that could happen, indicators are not pointing toward anything but continued market growth at the present time.
Commenters favor a tougher fiduciary type standard for brokers in initial feedback received by the Securities and Exchange Commission. The SEC’s Regulation Best Interest was released April 18 to mixed reviews.
Millennials want to hear more than just ‘pay debt, save money and plan for retirement’ from their financial advisors. Retaining those valuable young clients means listening to what they want, experts say.
But in a flash, he lost $2.5 million of their retirement savings by using it to bet on the volatility of U.S. stock markets. That’s what Joseph Daines, a retired orthopedic surgeon, and his wife Susan allege in a lawsuit against local investment adviser Mark Matsko and his firm Selway Asset Management.
First-quarter RIA mergers and acquisitions rocketed to a record 47 deals, bouncing back from 33 deals in the fourth quarter, according to new data.
The bank was found to have charged nearly 600,000 customers for insurance they didn’t need, which led to about 20,000 repossessions, investigators said.
Investment advice rules announced this week by the Securities and Exchange Commission, if finalized, will have a broad impact across the financial services industry. Here is who will be affected.
Financial services firms are getting fed up with high compliance costs, as 90 percent said they expect such costs to…
Several things contribute to clients outgrowing their advisors. In particular, advisors should be wary of these six things as they could be signs their client is ready to move on from the relationship.
Tech, Industrial Stocks Are Big Gainers As US Indexes Rally
U.S. stocks were broadly higher in afternoon trading, adding to the market’s gains last week. Technology companies, health care stocks and banks accounted for much of the rally.
How Advisors Can Prepare For Bear Markets
Someday the bear will come. How well are advisors preparing clients?
Traditional advisory payment models are steadily disappearing as younger clients expect flexibility and competitive fees. With that in mind, many advisors are creating new payment options that are gaining favor.
Digital-first agencies find that step No. 2 might be handing it off to an advisor.
Americans generally worry about wages, but younger workers are also concerned about affordable education.
More than 50 percent of financial advisors expect to go deeper in their social media relationship with their clients.
InsurMark says Simplicity acquired it because of its success in the financial advisor market.
As he sits in the Erie County Prison, accused of fatally shooting his wife of five months on March 8, John Grazioli can no longer tend to his business, Grazioli Asset Management at 3614 W. 12th St., near Potomac Avenue in Millcreek Township.
A new Chubb survey finds that clients want their advisor to deliver property & casualty solutions, but only 28 percent of advisors offer these coverages.
Advisor Admits Defrauding Former NFL Player Of $4.7M
Kenneth Ray Cleveland, 64, a former financial adviser based in suburban Los Angeles, has agreed to plead guilty to defrauding former NFL player Cory Redding out of $4.7 million.
A peek at leading indicators are signaling that further economic growth and stock market gains lie ahead, economic analysts say. In particular, manufacturing production and consumer confidence.
Planning experts offer advice on crafting a responsible retirement plan that takes into account sharply rising health care expenses. A retirement plan that shorts health care planning can leave a client high and dry, they say.
What if you have a client who needs to make a significant withdrawal during a bear market early in retirement? That scenario can devastate a nest egg, and avoiding it takes plenty of planning.
Study: Consumers Want To Hear About Annuities
More consumers are anxious about their finances and want to hear about annuities, according to the latest Greenwald survey.
Advisors should give fixed indexed annuities (FIAs) a serious look because FIAs offer a compelling story in an era of low bond yields, according to Roger G. Ibbotson, one of the most recognizable names in finance.
‘We Don’t Need Sexy,’ RIA Says of Annuities
Some industry observers say demographic, regulatory and technology trends have generated new momentum for many RIAs to consider offering fee-based annuities. The potential for mutual growth is high, some say.
Five 2018 Issues of Concern for Affluent Investors
Optimism in the U.S. economy remains up among high-net-worth investors, but concerns are creeping in, a new survey finds. Inflation, tax changes and interest rates are chief among them.
An SEC’s order found that Merrill Lynch sold almost three million shares of Longtop Financial Technological Limited’s securities into the market despite red flags indicating that the sales could be part of an unlawful unregistered distribution.
A September agreement on a two-day deadline for completion of a securities’ transaction might not be in place very long. Some factions are pushing for a one-day cycle, analysts say.
The Tax Cuts and Jobs Act eliminated the alimony tax deduction, which analysts say could prompt a spate of 2018 divorce filings, especially among high earners. Advisors should be prepared to untangle the finances.
Where to Draw the Line With Rude Clients
Most clients are great, but some are not. Where do you draw the line with rude, demanding and/or stress-causing clients? We offer five best-practice tips.
401(k) Tax Reform Boost Spells Opportunity for Advisors
The GOP tax reform bill is prompting more U.S. companies to bring financial advisory help in-house to help workers maximize their 401(k) plan participation.
Fee-based indexed and variable annuities are still posting small sales, but the numbers are rising. A key to future sales is whether the products catch on with registered investment advisors (RIAs), analysts say.
The Dow Jones tanked badly over the first few days of February, spreading fear among investors. But analysts say the market is fine and the “correction” was much needed.
Insurance company M&A deals fell sharply in 2017 and isn’t expected to rebound anytime soon. Several trends are impacting the potential for M&A deals, including tax reform and technology.
New Fed Chair Powell Winning Over Wall Street
Wall Street players are happy with the steady hand promised by new Fed Chair Jerome Powell. The biggest issue by far is how the Fed handles interest rates and inflation and Powell is not pushing any drastic moves.
Fed Chief Says Economic Outlook ‘Remains Strong’
Federal Reserve Chairman Jerome Powell told Congress that the outlook for the U.S. economy “remains strong” despite the recent stock market turbulence, keeping the central bank on track to gradually raise interest rates.
While millennials are big fans of robo-advice, older investors from the baby boomer generation are driving the concept, a new survey found. Aside from retirement services, older investors put fees and relaxation at the top of their list of concerns.
Advisors and brokers say fee-based compensation is a difficult transaction with many annuities. In addition, clients often save money over the long run sticking with the traditional commission-based model.
What Most Threatens The Economy?
The answer might surprise you.
Forty seven percent of caregivers have had to tighten their belts financially because of their caregiving responsibilities, a report found. An alert financial advisor can help the caregiver avoid financial hardship.
Researcher shows why advisors should show clients how to boost their Social Security and save their retirement by leveraging annuities.
Massachusetts regulators charged Scottrade with state law violations after the company allegedly ignored its DOL fiduciary rule compliance measures. Will similar investigations follow among other regulators?
Millennials in the Market For LTCi For Their Parents
One advisor is finding success selling long-term care insurance to millennials who want to make sure their parents have access to care if they need it.
Delaying Social Security us a time-honored strategy that can net a client up to 8 percent a year in benefits’ growth. But experts recognize there are times when an advisor must get on board with taking benefits early.
The National Association of Insurance Commissioners wants to produce a annuity transactions best interest model law each state could then adopt. But its draft law is drawing fire from both sides who consider it both too weak and too strong.
Advisors’ LTC Planning Options Require Tough Decisions
When it comes to planning for long-term care, advisors and clients have three main options — self-insure, long-term care insurance and life insurance with a long-term care rider. All have positives and negatives.
Even though many registered investment advisors offer insurance, a large percentage of them refer their clients to an outside insurance advisor, a survey found.
A Hint of Relief in Wall Street Correction
With Monday’s sharp downturn, the Dow Jones has lost about 2,200 points since Jan. 26, a decline of nearly 10 percent. But financial advisors say that is just a normal correction to recently explosive market growth that was unsustainable.
Should brokers be able to call themselves “financial advisors?” One organization doesn’t think so, and has sent a letter to the Securities and Exchange Commission asking the agency to police the title use.
Fresh off a growth capital investment from Eldridge Industries, DPL Financial Partners announced the addition of 10 new professionals, including a half-dozen experienced insurance consultants, accelerating its initiative to bring low-cost, commission-free insurance products to RIAs and their clients.
Many factors — among them, economic surprises, strong manufacturing activity, and a weak U.S. dollar — point to continued strong earnings across all sectors through 2018, economic analysts say.
Advisors across the industry are being given the go ahead to text clients. Companies such as Merrill Lynch and Voya have strict guidelines on texting, but executives say they must be active in a communication channel favored by so many Americans.
The Five Biggest Threats to the U.S. Economy for the Rest of 2018
The U.S. economy is rolling along on all cylinders. But analysts say there are reasons for concerns as many impacts are expected through the end of the year.
Turnkey asset management programs (TAMPs) have grown significantly in recent years, but that growth might be coming to an end due to a variety of factors.
Advisors Likely Heading for Exits in Broker Protocol Fallout
The financial world could see an exodus of advisors from firms in the coming months, one analyst says. Advisors are expected to leave while they still can do so without penalty as more and more firms plan to exit the broker protocol agreement.
Investors ‘Flocking In’ to Real Estate Lending
The stock market continues to hum along generating strong growth, but could a correction be around the corner? Some analysts say real estate lending offers investors correction protection while maintaining strong returns.
Survey data is finding that younger investors are not benefiting from the bull stock market nearly as much as they should. Moreover, many young people don’t have much knowledge, or pay much attention to their investments.
With algorithms taking over the decision-making part of investing, the role of financial advisors in wealth management is shifting from advisory services to client services.
Some advisors are torn over the value of long-term care insurance. Since most recipients will end up using the insurance, some say price hikes are inevitable. Others say no product or strategy better protects clients from end-of-life risk.
Risk Mismatch Raises Questions for VAs as Pension Vehicle
The pricing and hedging challenges that come with variable annuities with living benefits might make them a bad match for consumers in search of retirement income, a pair of economists say.
How to Manage Client Expectations in Stock Market Boom
New investor confidence indices, along with the tax reform bill, point to another strong year on Wall Street. The key for advisors is to keep antsy investors from getting distracted by huge market gains.
Eight (Plus) Things Clients Want from Their Financial Advisors
The latest J.D. Power investor study found that nearly half of “emerging affluent investors” are likely to walk away from their current wealth management firm. What are advisors doing wrong?
January Splits Leave Divorced Couples in Need of Financial Planning
A new survey confirms that divorce is highest in January, as couples look to move on after the holidays. More distressing is how many married people are unprepared for the financial burdens that come with splitting up.
2018 Shaping up as a Good Year for RIAs
With tax cuts enacted, a booming market and clients aware of the fiduciary standard, registered investment advisors say the conditions are ripe for a strong 2018. The new survey also found that most RIAs expect strong asset growth this year.
Artificial intelligence investments are returning strong growth to investors and the future looks bright, if a little uncertain. Experts share a few tips to keep in mind when considering AI investments.
A new financial designation program from the American College is designed to meet the needs of advisors in a complex environment, experts say.
ETFs Grabbing Bigger Share of Investment Pie
Exchange-traded funds moved past $4 trillion in global assets in 2017 as investors were drawn by low fees. Analysts expect that trend to continue as low-fee funds continue gaining popularity across investor segments.
Wealthy Investors Failing to Appraise Collectibles, Report Claims
Many wealthy people turn to collectibles and often fail to insure the valuables, or even determine how much they are worth, a new report states. Such collectibles are often bought with emotion and frequently make for bad investments.
About 42 percent of advised retail assets were invested under a fiduciary standard at the end of 2016, a new report found. That shift to fiduciary is growing as brokerage firms move clients into fee-based accounts and investors expect a fiduciary obligation.
New York Proposes ‘Best Interest’ Standard
New York is bidding to become the second state, after Nevada, to adopt a state-based best interest standard for the sale of life insurance and annuities. Gov. Andrew Cuomo said New York is tired of waiting for the Department of Labor fiduciary rule to take effect.
Next year could be a big year for sorting out the future standard that agents and advisors will abide by when selling products into retirement accounts.
We asked advisors what they would like to see in the coming year.
Many advisors are confusing financial plans with retirement plans and clients could suffer in the end, analysts say. The differences can be small, but important if client’s don’t fully understand.
Giant brokerage firms are divided about the broker protocol, an agreement to prevent lawsuits if advisors move to competitors. Some say the differing strategies are sure to lead to more lawsuits and cause problems throughout the industry.
Higher interest rates, increased inflation, and stronger market volatility are some of the reasons that investors should eye the stock market warily in 2018. Can the good times continue?
As Americans consider retirement options, some are choosing to spend their golden years overseas. A good advisor can be a crucial asset for to clients pondering the pluses and minuses of such a move.
With new tax policy getting a green light from Congress, investment professionals are already scrambling to gauge the impact on…
A new survey reveals that U.S. investors age 40 and older are very concerned about a stock market correction given the long running bull market. About 97 percent of investors say the market at its current levels has risks, with 37 percent saying the risk is significant or mostly risky.
Clients say they want information about environmental, social and governance (ESG) investments, but advisors have been slow to respond. The reasons for this are many, experts say.
GE Debacle Reveals Weaknesses in Dividend Strategy
General Electric’s decision to cut its dividend payout in half puts a dent in many retirement nest eggs. It also highlights the dangers in investing in dividend-paying stocks.
Using Mobile Apps to Curb Client Overspending
Nearly half of Americans say their expenses are equal to or greater than their income. That is a big problem for anyone trying to save for retirement. New spending apps are proving effective at keeping spending under control.
A new Harvard poll has found that two-thirds of millennials have more fear than hope about the country’s future.
GDP growth might trend close to 4 percent in the fourth quarter, analysts say. Certain sectors are better market bets than others — the housing industry, for one.
Fixed and indexed annuity sales drop below $50 million for the first time since 2002.
A Dalbar study confirms that do-it-yourself investors are costing themselves big bucks by mistiming and mismanaging their investments. There is no replacing the value of a real financial advisor for most investors, analysts agree.
The Dow Jones soared more than 19 percent in 2017 through mid-November. Will the good times continue in 2018? Some analysts say a variety of factors indicate that markets will keep rising.
A new survey found that 58 percent of people view health care costs as the No. 1 obstacle to financial security, a rise of 13 points in one year. What Congress will do with the Affordable Care Act is just one reason for the angst.
The price of bitcoin is soaring. Will it continue, as backers insist, or is the bitcoin price rise a sham investment, as some industry veterans say? Time will tell.
“The war for talent starts at the undergraduate level,” said Kate Healy, managing director, Generation Next, at TD Ameritrade Institutional.
Right now, health insurance stocks are going great guns. Will the Trump administration’s changes to the health care law change that?
Portfolio rebalancing is a critical risk-mitigating strategy, portfolio managers say. So why do many clients overlook this key task? A new study aims to provide a few answers.
Broker Protocol Faces Uncertain Future After Morgan Stanley Decision
Wirehouse Morgan Stanley is leaving the broker protocol, an agreement to prevent lawsuits in the wake of advisors departing for other firms. Will other wirehouses follow suit and clamp down on advisor movement?
Wall Street Sizes Up Tax Reform Possibilities
Top companies weigh in on the potential for tax reform, as well as who will be helped by the potentially historic changes to the tax code. Lowering the corporate tax rate could spur big economic growth, some analysts say.
Merger and acquisitions among registered investment advisors fell sharply in the third quarter as advisors see less reason to merge in the wake of an 18-month delay of the Department of Labor fiduciary rule.
Agents/advisors should be aware by now that the Department of Labor fiduciary rule took effect June 9, our Kim O’Brien writes. What does it mean for sales of financial products going forward?
A Merrill Lynch study, conducted in partnership with Age Wave, finds that the 40 million 1 family caregivers in the U.S. spend $190 billion per year on their adult care recipients.
Jackson National Life Insurance Company announced the formation of its Private Wealth & Trust group, a specialized team focused on complex planning, investment management and tax mitigation strategies for high-net-worth and ultra high-net-worth families.
