FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Clients and prospects don’t like financial jargon (Think Advisor)
Clients are becoming frustrated with the financial jargon advisors are using to sound more intelligent. “These are our customers out there and they don’t know what the heck we’re talking about,” notes Scott Kallenbach, director of strategic research at LIMRA. The complex jargon is not only limited to advisors, but marketing materials as well. So what should you do to sound more authentic in front of clients? Maria Ferrante-Schepis, managing principal at Maddock Douglas says advisors should be easy to understand, down to earth, memorable, positive, credible and relevant.
Financial fraud is under reported (Financial Advisor)
An Allianz Life Insurance study showed only 8% of those 65 and older who were victims of financial fraud discussed their misfortune with another person. Financial Advisor gives two reasons for fraud victims failing to report they have been victimized. Seniors are afraid to report caregivers for fear they won’t receive proper care and also do not want to give their children the idea they cannot take care of themselves.
IRA contribution changes can still be made (Investment News)
The April 15 tax deadline has passed, but changes to IRA contributions can still be made. According to Investment News, alterations can be made up until October 15 for “1) Reversing (undoing) a Roth IRA conversion, 2) Changing a traditional IRA contribution to a Roth IRA contribution, or 3) Changing a Roth IRA contribution to a traditional IRA contribution.” Anyone who makes a change after the April 15 deadline must file an amended return.
RIA ordered to pay $US48 million says he wasn’t a fiduciary (Financial Planning)
A registered representative who was previously ordered to pay $US48 million to a family, despite his claim he is not a fiduciary, might be on the hook for another $US3 million. Lee D. Weiss, managing partner of Family Endowment Partners, allegedly lost $US3 million in client money by investing in a Polish tobacco holding company that was “akin to a Ponzi scheme.” Court documents showed the investment did not meet the “moderate to conservative” risk profile of the plaintiffs.
The market hasn’t yet fully priced in Fed policy (Bloomberg)
Bond guru Jeff Gundlach believes markets have not yet fully priced in Fed policy. On the series premiere of Wall Street Week Gundlach suggested, “The ultimate consequences of all these extreme policies have yet to be felt and will be felt.” Gundlach warned an area of the market he remains cautious on is high yield.
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