FA Insights is a daily newsletter from Business Insider that delivers top news and commentary for financial advisors.
Fidelity offers clients IRA matching (Forbes)
Fidelity is going where no other broker has gone before. The company is offering to match up to 10% of IRA contributions for three years if a client funds a new, or existing account, with at least $US10,000. According to the Boston Globe, “Fidelity’s offer is considerably more modest for customers moving smaller balances. A $US10,000 account, for instance, would get a 1 per cent match. And $US2,000 annual contributions made after that would reap just $US20.”
Family owned businesses buoy emerging markets with dividends (Investor Perspectives)
Investors love dividends, which is why they should consider emerging markets. “According to a 2011 Credit Suisse study, family businesses account for 50% of all listed companies and 32% of market cap across 10 Asian countries,” notes David Ruff of Forward Investing. He continues, “Where families retain a controlling interest or have a significant minority stake, they generally want to keep paying themselves a dividend.”
Morgan Stanley agrees to settle RMBS probe for $US2.6 billion (Think Advisor)
Morgan Stanley has agreed to pay $US2.6 billion to settle a RMBS probe stemming from the 2008 financial crisis. Think Advisor highlights a Morgan Stanley statement noting, “The firm increased legal reserves related to mortgage matters by about $US2.8 billion, cutting 2014 income from continuing operations by $US2.7 billion, or $US1.35 a share.” Wall Street’s biggest banks have now paid more than $US35 billion in fines.
Constructing a retirement spending plan (Charles Schwab)
Charles Schwab suggests using “multiple building blocks to help generate cash flow” as you transition from saving to spending during retirement. Retirees should be careful not to rely too much on interest and dividends and should instead use their “entire portfolio, including tapping into short-term reserves and regularly harvesting capital gains, if necessary.” Any money that is needed within the next year should be moved to a savings account.
House bill relaxes 529 plan rules (Investment News)
The House of Representatives has passed a bill broadening the way 529 plan money can be spent. Investment News reports the legislation “would let the tax-free savings accounts cover the cost of computers and allow refunds to be reinvested into the plans within 60 days without penalty.” The bill must still pass the Senate before it becomes a law.
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