FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Charles Barkley gives a shout out to his financial advisor (Financial Planning)
When former NBA all-star Charles Barkley was on the floor of the New York Stock Exchange CNBC anchor Bob Pisani asked him who handled his investments.
Barkley’s response, “Raymond James. I’m [at] Raymond James. Birmingham, Ala. My guy’s name is Glenn Guthrie. I’ve been with him for 27 years and I trust him with my life.”
People are living longer and its crushing pension funds (John Mauldin)
John Mauldin writes, “It is a fairly well-defined trend. The actuarial accountants whose responsibility it is to track these things updated the life expectancy tables for a 65-year-old male, who can now expect to live an additional 21.6 years, two years longer than in the old table.” By his count pensions may be underfunded by as much as $US4.1 trillion because fund managers assume unrealistic earnings of 7.5-8.0%.
Things to consider when contemplating a move to a new firm (Wealth Management)
Changing firms brings about the opportunity for better pay. However, a move can be costly if the advisor doesn’t consider the interests of his/her clients. Mindy Diamond of Wealth Management six things an advisor must take into account before making the big move.
The rise of the ‘robo advisor’ (Financial Planning)
The ‘robo advisor’ has begun to take market share from the traditional financial advisor. Financial Planning outlines the advantages and disadvantages of 10 names in the space. Names highlighted include: Schwab, Vanguard, Wealthfront, Betterment, Motif, Jemstep, SigFig, Aspiration Fund Advisor, Robinhood and Guardvest.
3 takeaways from the T3 Conference (Investment News)
The rise of the ‘robo advisor’ allows firms to manage thousands of clients, far more than the traditional advisor. Advisors should not fight the trend and should instead embrace change. Steve Sanduski of Investment News says these are three ‘must dos’ from the T3 Conference: “Implement a robo-adviser strategy, offer a “consumer grade” client interface, and educate your clients.”
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