The Department of Labor’s lifetime income illustration rule requiring pension and retirement plan providers to issue an annual projection for clients goes into effect in September but the department still has not produced a final rule.
A MetLife study using Chamber of Commerce data shows employees are worried about finances but employers are not sharpening their focus on their workers’ financial well-being.
So, you have reviewed the client’s circumstances, discussed the options, developed a roadmap, excited the client about their plan and then it’s “Great! Let’s do some paperwork!” That frown you see on the client’s face is one of the costs of friction.
MassMutual is pushing deeper into cryptocurrency with a planned investment fund for Bitcoin administered through a tech platform that the carrier has already invested in.
Retirement plan participants are worried about running out of money, losing income or not being able to afford medical expenses, according to an American Century survey.
The data shows Americans saved more of their money during the pandemic, largely because they could not spend it. But studies are showing that Americans might be changing their identity from consumers to savers.
Biases are well-known for pushing investors to make short-term decisions that endanger a secure retirement. But biases can be called on to help get people into plans and keep them there.
Empower, a Great-West Life company, plans to consolidate the two companies’ retirement business on a platform the Empower built with the help of last year’s $1 billion acquisition of Personal Capital.
Black and Hispanic Americans were already at a disadvantage with retirement savings. Now the pandemic disrupted their employment more than it did for whites, according to a new survey.
Bitcoin and other digital asset prices are crashing now, but Bitcoin is doing what Bitcoin does.
Investors seem inclined to build wealth until 45, and then turn to retirement-saving mode, according to a Money Morning survey.
Women already faced a significant gap in their retirement savings before the pandemic put those golden year dreams further out of reach, according to findings from a Harris poll.
Broker-dealers, investment advisors and insurance distributors realize that they must prepare to comply with the Department of Labor’s investment advice guidance, but what do they need to do?
Because registered investment advisors are held to the fiduciary standard, RIAs might be tempted to think they have the Department of Labor’s investment rules covered automatically, but they would be wrong, says two Faegre Drinker attorneys.
Planners and advisors say not many clients are asking about ESG investing, but are becoming interested the more clients learn about them.
In an era when regulators are tightening standards around fee transparency and disclosure, it is clear than consumers want clarity and are not finding it, according to the Hearts & Wallets survey.
Institutional investors were already anxious about inflation before the consumer price index popped above 4% for the first time since 2008.
When leukemia patients were assisted with costs related to medical expenses and worked with financial professionals, they had a significant improvement on health outcomes, according to a study.
Polls found that Americans are more confident about covering their daily expenses and their ability to handle an emergency, but they also mortgaged some of their future to pay for that security today.
Many wealthy families would be spared in leaving the estate tax exemption as is, but get slammed by the elimination of the step up in basis.
Even with the strong equities market and low bond rates, stock funds are losing net flows to bond and money funds, while ETFs take their own bite.
Recent merger and acquisition momentum is likely to continue, putting this year on pace to be the ninth consecutive record-breaking M&A year, according to a report from Echelon Partners.
The wealthy are leaping far ahead of lower-income groups’ long-term goals. The survey found that the majority of affluent Americans are prioritizing many traditional milestones in life, such as buying a house.
With New York legalizing recreational marijuana, is it time for investors to jump in? There are still federal-level barriers that limit cannabis companies’ growth potential.
Talk of pending tax increases has some advisors busy with clients who are anxious to plan now.
Money can still be made off Bitcoin purchased today, but scale works against performance matching the massive gains that have created a gold rush mindset for some.
The original will might be “safe” in a safe deposit box, but it would be inaccessible without a probate judge’s order — and what does a judge need to make that order?
The financial industry is fixated on boomers and their kids, the millennials, but the generation in between has the numbers and the dollars to warrant rapt attention, says Chip Roame of Tiburon Strategic Advisors.
Enforcement action increased on retail investment products such as variable annuities last year, according to the latest Eversheds Sutherland report. Expect more of the same in 2021.
Without the grace period, annuity agents and advisors in Virginia must be in compliance on May 1, which does not give enough time to get ready, IRI says.
Keith Gill went from YouTube and Reddit fame as the investor who helped inspire the runup in GameStop stock to a star witness in a congressional hearing this morning. And he did it all from his big, red gamer chair.
“My sense is that the regulation has evolved to such an extent that many people think it should be part of the portfolio,” says Rick Rieder, chief investment officer of global fixed income at BlackRock.
The disinvestment during the pandemic, especially in developing regions, will compound over the decade, slowing down the economic spurt expected as the pandemic subsides, according to the World Bank Global Economic Prospects report.
Bitcoin broke price records a couple of times last week. So, is it time for advisors to add cryptocurrency to the investing toolbox? Although clients might be asking about bitcoin and its cousins, advisors are just peeking over the fence at this point.
The Department of Labor issued its new fiduciary rule one workday after a federal court upheld the Securities and Exchange Commission’s Regulation Best Interest standard, which the DOL rule was designed to harmonize with.
As the financial crisis deepens, advisors are finding that “stay the course” is not going to cut it with clients, even though it might be good advice. This is the time to help people understand the structure of their plans and discover their real concerns.
Advisors are still reinforcing the message of riding out the slide, but helping rebalance when clients demand it. An American College survey also finds clients are generally sticking with the long-range plan.
Some advisors sent preeemptive messages, but they didn’t calm everybody. Advisor messages focused on the long view, but some clients were looking at the long view down.
The coronavirus’ illness, COVID-19, is not nasty enough to be spotted easily but latent enough to spread wide before anyone even knows it has arrived.
An unidentified fraudster stole a Florida woman’s identity to befriend the 80-year-old Oregon man through an online dating service, according to the Oregon Department of Insurance. The fraudster quickly persuaded him to send money for a business opportunity.
FINRA told consumers that the SECURE Act will make it easier for employers to include annuities in their retirement plans. Also in the 10-point notice, FINRA said plan providers would need to produce a lifetime income stream estimate based on the participant’s lump sum.
Although only 20% of firms knew what their ‘critical moments’ were with clients, many were sure they are doing a fine job keeping clients satisfied, according to a Sandler Research poll.
A lawsuit seeking class-action status accuses Raymond James of “reverse-churning” clients from commission-based into fee-based accounts. The suit alleges that the firm used the Department of Labor’s fiduciary rule as a reason to move people into fee-based accounts, regardless of suitability.
The couple and conspirators promised to produce mobile solar generators, lease them back to their own company and then lease the generators to third parties. Instead, court documents say, they took the money and did not produce the generators.
Two men took $4.85 million in investor money and spent it on luxury cars, yachts and a movie company, instead of ownership in a cannabis company, according to the SEC.
The financial services industry is the least trusted of 15 sectors, according to the 2020 Edelman Trust Barometer. And only 18% of respondents believe that the system is working for them. It all amounts to an anxious public.
Investors are demanding more impact accountability of companies and investment managers. ESG funds are pulling in an exponentially greater number of dollars, but the Securities and Exchange Commission is asking questions.
Most advisors might be thinking they want to sell but only a few have actually planned how to do it, says Chip Roame of Tiburon. The succession process has six elements to consider.
The annuities debate is among the most intense and divisive in the financial services industry but the truth is much less flashy than the hardliners like to imply: as with most investment and insurance options, annuities can be a helpful tool for some, but are not a good fit for everyone.
The optimism of high-net-worth investors fell a full 10 percentage points, to 55% in 2019 from 65% in 2018, as concerns about markets, the economy and politics at home and abroad continued dominating the headlines.
The Security and Exchange Commission expects compliance on Regulation Best Interest by June 30, but FINRA and the SEC will start looking in January for signs of preparedness.
While advisors certainly help clients manage money, they add even more value by helping a family make personal financial decisions, few of which are more personal than the choice to pursue a college education. Here are some important strategies to consider.
Variable annuity sales in the third quarter were $21.2 billion, an increase of 1% over the previous quarter. Variable annuities have no floor, and potential for gains/losses that are determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.
In case you missed this week’s financial news headlines …
Each week MDRT and AdvisorNews bring readers advice on topics encompassing the financial services industry including case studies, practice management, tips for success and much more.
An estimated 88% of total U.S. public market assets are affiliated with a Principles for Responsible Investment (PRI) signatory, however only 4.5% of signatory assets are described in their official product documents (e.g., prospectuses) as taking ESG considerations into account to inform investment decisions, a Cerulli study found.
The future belongs to agents and advisors who broaden their solution set and partner effectively. To deliver holistic planning support in a cost-effective way, however, you need a partner that can supplement your existing knowledge and capabilities. Ideally, your partner will bring to the table:
Each week MDRT and AdvisorNews bring readers advice on topics encompassing the financial services industry including case studies, practice management, tips for success and much more.
Studies show Americans are anxious about running out of money in retirement, but few have made an effort to determine their income needs.
Each week MDRT and AdvisorNews bring readers advice on topics encompassing the financial services industry including case studies, practice management, tips for success and much more.
