FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
A look at the personal finances of presidential candidates (WalletHub)
WalletHub examined the finances of the 2016 presidential candidates and found the average candidate has $229.8 million in assets, excluding home equity, almost 13,564 times the average American’s $16,942. Donald Trump ($2.1 billion) and Hillary Clinton ($52.7 million) have the highest total of assets. On average, presidential candidates hold $6.5 million of cash in the bank while the average American has less than $1,000. Hillary Clinton has raked in nearly $11.8 million in speaking fees, averaging more than $231,000 per speech. Interestingly, more than $2 million has come from speeches given in Canada.
Deutsche Bank hit a record low (Business Insider)
Shares of Deutsche Bank tumbled 8.4% in Frankfurt, pressing to a record low. Monday’s steep slide comes amid renewed concerns regarding Europe’s banking system as the cost of insuring Deutsche Bank’s debt hit its highest level since July 2012. After beginning 2016 at about 95 basis points, Deutsche Bank’s credit default swap spread hit 207 basis points on Monday.
NextGen advisors aren’t that different (Wealth Management)
One of the hot new trends in the industry is attracting “NextGen” advisors. A survey of 349 advisors found not much has changed in the industry over the years. The industry is made up of mostly white males who have a college degree who aren’t looking to change firms. “…if you look at the demographics of who has money in the U.S., it’s probably going to be very reflective of that,” Tim Welsh, president and founder of Nexus Strategy, told Wealth Management.
Advisors might need to take a third party exam (Think Advisor)
Skip Schweiss, TD Ameritrade Institutional ‘s managing director of advocacy, told a town hall at the NationalLINC conference that sometime this spring the Securities and Exchange Commission will release its proposal requiring advisors to take a third party exam. According to Think Advisor, Schweiss said the third party exam joins the Department of Labour’s decision to change the definition of fiduciary and the potential release of a uniform fiduciary rule as the top three issues for advisors in 2016.
Research conducted by the University of California, Berkeley found switching California teachers from pensions to a 401(k) plan would increase the burden on the taxpayer and hurt retention rates. The research concluded the taxpayer’s burden would increase because teachers would receive less money from a 401(k) than a pension, causing the need for more public assistance. About 75% of California teachers have at least 20 years of service time and around 50% will work for at least 30 years.
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