FA insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Hiring a financial advisor makes you happier (CBS Connecticut)
Research conducted by Cameron Newton, a professor at QUT Business School, a leading school for financial advice in Australia, found people who have financial advisors are happier. According to Newton, “What stood out from the data overall was that the longer a client spent developing a relationship with their advisor, the more positive the outcomes for the client.” He continued, “Longer term clients enjoyed greater feelings of financial well-being, psychological health and life satisfaction overall.” CBS reports many people give themselves too much credit when it comes to their knowledge about financial literacy and regulations.
Nonfarm payrolls grew in-line with expectations (Business Insider)
The US economy added 219,000 jobs in July, roughly in-line with the 225,000 jobs that economists were expecting. Friday’s report failed to move the needle on the unemployment rate, which held at 5.3%. Wages grew at a modest 0.2% versus June and at a 2.1% clip compared to a year ago. The report has many market participants suggesting a rate hike could come at the Fed’s September meeting.
3 barriers to estate planning (Financial Planning)
A good estate plan is critical to maximise the amount your beneficiaries receive. According to Financial Planning, there are three barriers that prevent someone from planning their estate. The first barrier is procrastination. People don’t like to think about their own death. The next barrier is indecision. Clients have trouble deciding who to give their assets to, and how much to give. The final barrier is inattention. A good estate plan needs to be updated frequently because your financial situation is always changing.
RBC is lowering mutual fund expenses (Think Advisor)
Royal Bank of Canada is cutting expenses on four of its funds by as much as 44%. The cost reductions will take place in the RBC Emerging Markets Equity Fund (REEIX), RBC Mid Cap Value Fund (RBMVX), RBC BlueBay Emerging Market Corporate Bond Fund (RBECX) and RBC BlueBay Global High Yield Bond Fund (RGHYX), and take place over the next 27 months. Think Advisor notes any advisor who parks at least $US10 million in the funds will receive “white glove treatment,” or access to the RBC’s people, tools and knowledge.
Ameriprise rated top retirement income plan quality (Financial Advisor)
A survey conducted by retirement trend researcher Hearts & Wallets concluded Ameriprise is the top rated firm for retirement income plan quality. According to Financial Advisor, 84% of clients with at least $US100,000 in investible assets gave the firm their stamp of approval. Edward Jones (74%) and Wells Fargo Advisors (73%) finished second and third in the rankings.
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