FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Financial advisors need to be more like Yoda (InvestmentNews)
“Your job as a financial adviser is to be like Yoda, not Luke Skywalker. You want to be the guide and mentor who helps ‘Luke’ overcome his obstacles and fulfil his destiny,” writes Brad Johnson. “This is where we as financial advisers often mess up. We are so busy trying to show our prospects how smart we are, how many designations we have, and how we are the greatest adviser in our local market, that we fail to realise what our prospects actually want.”
Johnson suggests that there are 3 important things advisors should remember in order to be more like Yoda: 1) define their value and trademark their planning process; 2) empower their clients and walk them through the process; and 3) help clients understand the purpose of each meeting, and what they will be getting out of it.
Affluent investors are feeling a bit more confident, according to a new Spectrem Group survey. The Spectrem Affluent Investor Confidence Index rose to 7 in November, up 3 points, while the Spectrem Millionaire Investor Confidence Index rose to 15, up 9 points. Both of these indexes are at 3-month highs, reports Emily Zulz.
However, the president of Spectrem George H. Walper Jr. said that even though investors are starting to feel better about their personal financial situation, mostly due to good economic reports in November, they are also starting to feel uneasy about the global economy and the ongoing threat of terrorism.
Financial advisors are focusing on growth and tech going into 2016 (Financial Advisor Magazine)
The 2015 Registered Investment Advisor Study suggests that advisors are focusing on growth and technology going into the new year.
“Advisors were asked what they would do if they had an extra dollar to invest in their business, and 38% said they would use it to grow their business,” reports Karen Demasters. “Adding to technology came in a strong second … possibly as a complement to the desire to grow. Smaller-firm owners expressed concern about integrating the various forms of technology.”
The yuan’s inclusion in the IMF basket is a “vote of confidence” (Advisor Perspectives)
“We expect the short-term market price impact on RMB would be gradual and small due to the IMF delaying any actual changes to its SDR basket to October 1, 2016, when the renminbi will be added as a fifth currency, along with the U.S. dollar, the euro, the Japanese yen and the British pound. However, beyond the price impact, we believe the more important aspect of the result is the signal it sends. It is a vote of confidence by the IMF on the currency. Within China, it is also a catalyst for further financial sector reforms such as capital account opening and relaxation of foreign exchange regulations,” writes Wei Zhang of Matthews Asia.
Merrill Lynch’s 2016 compensation places focuses on smaller advisors (Wealth Management)
Merrill Lynch is out with its 2016 compensation plans. Notably, it has increased the productivity range thresholds by $50,000 for advisors who generate less than $1.5 million in fees and commissions, reports Megan Leonhardt.
“The firm — which hasn’t modified its grid since 2009 — says the updated productivity ranges have been put in place to help its 14,000 advisor force grow their fee-based businesses to be well-positioned if the Labour Department’s fiduciary rule comes to pass,” reports Leonhardt.
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