FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Advisors should encourage their clients to talk about the ugly stuff during the holidays (Wealth Management)
It’s a good idea to encourage clients to capitalise on holiday get-togethers and address some of the tougher financial, security, and legal issues regarding familial affairs.
There are several key things that advisors should recommend clients think about such as finding the will(s), locating disability and life insurance policies, figuring out what family members want done with their bodies after they die (and figuring out whether they have purchased these things in advance), and finding where people keep important password information.
Here are 5 financial New Years resolutions for this year (The Eppy Group)
People should take some time to think about their financial New Years resolutions this year. Joe Eppy, president of The Eppy Group, suggests that there are five important things to consider:
1) Folks should set goals with measurable results. 2) They should plan ahead to better manage finances, and consider using apps to keep track. 3) They should remember to review their credit. 4) People should sit down at the end of every month and review their bank and credit statements. 5) They should meet with a real financial advisor to help with long-term planning because “Googling and reading blogs just simply doesn’t cut it when your financial future is at stake,” according to Eppy.
The US falls a bit flat when it comes to financial literacy (Think Advisor)
The US ranked 14th out of the 140 countries surveyed in terms of financial literacy with a rate of 57%, according to a new survey by the S&P. By comparison, Norway’s rate was at 71%, Israel was at 68%, and the UK’s was at 67%.
“Americans with less education and lower incomes have lower financial literacy levels than their counterparts in other wealthy countries,” reports Emily Zulz. Additionally, “62% of men in the US are financially literate, compared with 52% of women.”
The mild growth is hiding things in the global economy (Advisor Perspectives)
“Global growth in a range of 2.5% — 3% is not particularly inspiring, but it is what we expect for at least well into next year, and more broadly it is what we have come to expect in a New Neutral world of overall lower trend growth rates,” said Richard Clarida of PIMCO.
But, notably, “that lacklustre average growth disguises some interesting divergences in the global economy. In the US, eurozone, UK, and potentially Japan, we expect growth rates above trend, even as China and other major emerging economies slow down. This is indeed a multi-speed world,” he added.
A bill that would prevent the SEC from seizing emails without a criminal warrant has wide support in the House (Financial Advisor Magazine)
“A House bill that SEC Enforcement Director Andrew Ceresney claims would hinder investigations has widespread bipartisan support,” reports Ted Knutson. “The bill would prevent federal agencies from obtaining emails from Internet service providers without a criminal search warrant, which could hinder the SEC investigations because the agency has no police powers.”
John Conyers, the lead Democrat on the House Judiciary Committee, said that the bill has over 300 co-sponsors out of the 435 House members.
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