August 10, 2016Is "AUA" in line with transparency and regulatory guidelines?
Some wealth firms stress "assets under advisement" or "assets under supervision." Are you OK with that?
Yes. It's perfectly appropriate and gives a better picture of the business than AUM alone.31% No. "Assets under management" is the only figure that matters, ethically and legally.
August 8, 2016How Central Is Behavioral Finance to Your Work?
According to Investopedia, behavioral finance “seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions” — like, in the classic example, buy what’s dear and sell what’s cheap. Do you use any of its tenets with your clients?
It’s a cornerstone.0% It’s utter nonsense.43% It’s something in between.
August 2, 2016Are Clients Interested in SRI and "Sustainable" Investments?
In new research from TIAA Global Asset Management, 95% of advisors say their clients have no exposure to socially responsible or "sustainable" investments, while around a third of high-net-worth investors say they do. And 87% of Millennials claim they'd stay with an advisor who could talk about the subject. So, why the apparent disconnect? Are your clients interested in SRI and sustainable strategies?
Yes: I talk about SRI with clients and some hold such investments.19% Yes: But given the performance, I find it difficult to justify recommending SRI.38% No: My clients have never really raised the issue much with me.
July 26, 2016Who's The Best Presidential Candidate for the Wealth Advice Industry?
Last week, Donald Trump became the Republican Party's official candidate for the White House. And Hillary Clinton is about to get the nod from the Democrats. Which nominee (in alphabetical order below) do you think would be best for the financial advice business? Tell us why in the comments section.
Donald Trump36% Hillary Clinton
July 19, 2016Will You Recommend More ETFs in the Future?
New research from Cerulli Associates says the use of exchange-traded funds at wirehouses has increased – and will continue to increase as fee-based advisory platforms grow. Apparently RIA ETF allocations as a percentage of the client portfolio are still higher, but in total wirehouses hold more of the ETF universe. Will you use more ETFs in the future?
More.33% Around the same.6% Less.
July 12, 2016How Important is Insurance and Annuities to Your Practice?
Life insurance and annuity providers want broker-dealers to sell more of their products, new research from Aite Group suggests. The research house says within the next two years, 61% of insurers will be distributing through this channel. But do broker-dealers want to deal with more providers and push more product?
These products are the lifeblood of my practice.34% The more products and providers, the greater the variety of services I can offer my clients.55% These are just periphery items. My main business centers on investment advice.
July 5, 2016Does the Fed Stress Test Matter to Big-Bank Advisors?
The biggest U.S. banks just passed the Federal Reserve’s yearly “stress test” on their ability to meet capital requirements, though Morgan Stanley was asked to resubmit its capital-reserve plan for the second year running. Bank of America, Merrill Lynch’s owner, faced a similar challenge last year. Do such events have a negative impact for FAs who work at these banks?
No, it’s a small accounting issue, easily overcome.57% Yes, it tarnishes the brand.
June 28, 2016How Bad is Brexit for American Investors?
Britain's vote last week to leave the European Union saw an immediate and sharp fall for European equities as well as pound Stirling and euro currency markets. But what's the fallout for your clients?
It's bad on a global scale that will seriously impact the U.S.60% It's a new risk to be aware of, but it's not that bad.16% It's a great new opportunity with little downside.12% It won't impact American investors at all.
June 21, 2016Should you block your clients from buying 'bad' products?
Fidelity is making its brokers bar clients from buying unsuitable products, such as certain exchange-traded notes it deems bad choices. Suitability standards and fiduciary responsibilities are one thing, but if a client has their heart set on a specific investment, should you block them outright?
Of course! It's our job to make sure our clients are investing wisely.32% You can't. I'll advise my client it's a bad move, but if I blocked them they'd just go somewhere else.
June 14, 2016What're the Chances a Lawsuit Can Stop the Fiduciary Rule?
Earlier this month Sifma and a consortium of plaintiffs brought suit in federal court to block the Department of Labor's new fiduciary rule. The suit claims the DOL has no right to regulate the space. Now more suits, one led by the National Association for Fixed Annuities and another by the American Council of Life Insurers, have also been filed. But what are the chances any of these suits will be successful?
A good chance: At least one of the suits has sound arguments that are likely to stop the DOL in its tracks.43% It's 50/50 that one of these lawsuits can win.39% No chance: The suits have no merits. They're just posturing.