FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Dementia is a concern for advisors (Financial Advisor)
Dementia is a growing concern for financial advisors as more and more baby boomers age. Steve Starnes, a senior financial advisor with Grand Wealth Management, specialises in working with clients who suffer from memory loss, and he told Financial Advisors, “If we can deal with the possibility of dementia ahead of time, it will reduce the stress for everyone.” According to Starnes, people who suffer from dementia should still be given some control, but not so much that it jeopardizes their financial future. Additionally, another option is to give clients “either or” questions instead of open-ended ones to figure out what they want.
China admits to fabricating economic data (Business Insider)
A report from China’s state-run news agency, Xinhua, says “several” officials in the country’s Northeast have admitted to fabricating economic data to show higher growth than obtained. In one instance, Liaoning gross domestic product was reported at 9.5% three years ago and is now being reported at 2.7%. According to one unnamed official, “If the past data had not been inflated, the current growth figures would not show such a precipitous fall.” Additionally, Guan Yingmin, a government official in Heilongjiang province, suggested investment figures for much of the northern part of the country had been inflated by 20%.
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Third Avenue’s CEO is out (Business Insider)
Third Avenue Management’s CEO David Barse has become the first casualty of the junk bond rout. According to a statement released by the firm, the two parties reached a mutual agreement to part ways. On Thursday, Third Avenue announced it was closing its Focused Credit Fund, which was has seen its assets fall to $789 million from around $2 billion in 2013. Year-to-date, the fund was down 26.8%, according to Morningstar data, far worse than the average drop of 3.83% by its peers.
US credit card debt is near a tipping point (Card Hub)
Credit Hub’s 2015 Credit Card Debt Survey found Americans are loading up on credit card debt again. After seeing their debt burden tumble by $35 billion in the first quarter, US consumers added $32 billion in credit card debt during the second quarter, and another $21.3 billion in the third quarter. According to Card Hub, consumers performance has regressed in 8 out of the last 10 quarters, providing evidence “credit card users are reverting to pre-downturn bad habits.” Consumer credit card debt now totals $21,297,897,103, up 34% from a year ago, says Card Hub.
The military retirement system is changing (Wealth Management)
Wealth Management cites a Fox News report which found that anyone who serves at least two years in the armed forces will be eligible for retirement benefits. This is a big change from the previous plan, which made only 20-year veterans eligible. According to Wealth Management, the new plan will “be calculated as 2 per cent times the years of service, compared to the previous rate of 2.5 per cent after 20 years.” In addition, military members will receive a match of up to 5% on their contributions between their second and 26th service years, as well as other benefits.
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