FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Wall Street banks are fighting Derek Jeter’s business (Fox Business)
There is a battle brewing on Wall Street between Goldman Sachs and Morgan Stanley over control of Derek Jeter’s vast fortune, which is worth an estimated $US200 million.
Fox Business’ Charlie Gasparino reports Jeter is being recruited “not only as a brokerage client to manage his enormous net worth, but also to serve as an investment banker to finance Jeter’s business ventures, including his dream of purchasing a major league baseball team.” It appears Morgan Stanley has an early leg up as Jeter was spotted having dinner with an executive from the company earlier this week in Midtown Manhattan.
A look at how stocks respond to rising interest rates (Advisor Perspectives)
As expectations mount the US Federal Reserve will move off the zero bound, more analysts have begun to discuss the impact a rate hike has on stocks.
“While rising interest rates may not “initially” drag on asset prices, it is a far different story to suggest that they won’t. In fact, there have been absolutely ZERO times in history that the Federal Reserve has begun an interest rate hiking campaign that has not eventually led to a negative outcome,” writes Lance Roberts.
Congressman suggests fees for advisors will not increase (Financial Advisor)
“The House subcommittee overseeing the SEC has no plans to allow the regulator to impose fees on financial advisors to increase exams,” reports Financial Advisor. Democratic Rep. Maxine Waters is expected to proceed with legislation seeking new fees on advisors, but even she admits the chances of passage are small. “The industry wants it. We have to show this is the kind of public policy we want to fight for,” Waters said.
Some tips on preparing financially for Alzheimer’s (WealthManagement.com)
The costs of long-term care are high, and that is why it’s best to plan in advance. According to Genworth data, the average length of care requires three years and costs $US260,000 in a nursing home and $US136,000 in-home. “Wealthier families may be able to self-insure, although experts say that you would need about $US500,000 to $US750,000 to have a 95% assurance of having what you might need,” suggests Wealth Management.
The recent crash in oil prices was expected to provide a boost to consumer spending; however, that has not exactly played out.
Jeffry Bartash reports, “Some analysts suggest the scars from the Great Recession still linger in the minds of millions of Americans and that their cautious behaviour is unlikely change anytime soon. Other analysts also to point to higher housing and health-care costs as potentially siphoning off some of the gas savings and leaving consumers not much better off.”
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