FA Insights is a daily newsletter from Business Insider that delivers the top news and analysis for financial advisers.
How to help prevent rich families from feuding (Financial Planning)
Often times families feud over who has control of the family business, and how much money each member is entitled to when a patriarch/matriarch passes. How can financial advisors prevent these fights from happening? Robert Seaberg, president of Intersect Consulting, says advisors should become more like anthropologists, spending time with the members, and “Ultimately that information will show you patterns and themes.” From there an advisor has a better understanding of what is at stake. However, ultimately the decision is up to the patriarch.
The NFL is becoming a taxable entity (Bloomberg)
The National Football League is shedding its tax-exempt status. NFL Commissioner Roger Godell says the move eliminates a “distraction,” with Bloomberg reporting the switch will cost the league “an estimated $US109 million over the next decade.” Today’s announcement leaves the National Hockey League as the only major professional sports league with tax-exempt status.
The 529 college plan might see some changes (Think Advisor)
The Senate Finance Committee is debating “common sense” changes to the 529 college plan. If passed, the bill would make qualify computers as an educational expense, remove distribution aggregation requirements and modernize the tax treatment of 529 accounts. The bill has already passed the House.
Ben Bernanke joins PIMCO (Business Insider)
Former Federal Reserve Chairman Ben Bernanke has taken a senior advisory role at PIMCO. According to the firm, Bernanke “will contribute economic expertise to [the] firm’s investment process” and will “engage with clients.” Bernanke will be a busy man as a recently joined Citadel in a similar capacity, and has been blogging for the Brookings Institute.
Interactive Brokers loses arbitration case (Investment News)
Interactive Brokers was ordered to pay $US1.2 million as part of an arbitration. According to Investment News, “The case revolved around a complaint filed with Finra by two beneficiaries of a trust fund who alleged that Interactive Brokers was negligent in allowing the trustee, who had settled earlier with the complainants and was not named in the arbitration complaint, to make unsuitable and speculative trades with funds in the trust.” Two of the three members of the arbitration panel voted in favour of the plaintiff while the third member dissented, opining, “Claimants cannot meet their burden of proof, as a matter of law.” Interactive Brokers is looking into an appeal.
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