FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
3 ways to land good employees (Financial Planning)
Financial Planning says the wealth management business is about people and the best investment a firm can make is in its employees. First, Financial Planning suggests to find the best person and then consider the job. Next, it’s easier to lure good talent if you can show rapid growth. Financial Planning says a track record of 15-20% growth rate is ideal. Finally, make sure to give employees the opportunity to succeed or fail. According to Financial Planning, “Talented people want to own their work and contribute to the overall success of the company.”
Baby boomers are missing something when it comes to retirement planning (Financial Advisor)
Baby boomers might be financially prepared for retirement, but they are overlooking one key aspect. Research from RetirementProject.org has found that many baby boomers are not socially prepared for retirement. More than 60% of respondents said they participate in fewer than four social activities a week. “Too many people are unnecessarily walking into retirement blindfolded, out-of-sorts, and socially unprepared to adapt to the everyday rigors of retirement,” Robert Laura, founder of RetirementProject.org, told Financial Advisor.
Charles Schwab announced first quarter earnings of $US0.25 per share. The report was of interest to many in the industry because it was the first since the launch of Schwab’s robo advisory site. According to the bank, clients opened 280,000 new brokerage accounts, a 16% increase versus last year. “We gathered $US37.0 billion of core net new assets, the highest second quarter in our history, and maintained a 6% annualized organic growth rate despite seasonal tax outflows in April,” CEO Walt Bettinger said.
Pamela Capalad started Brunch & Budget as an informal way to get people to start thinking about their finances and planning for their future. Capalad told Bloomberg, “The idea of getting to relax and have a meal with somebody just changes the conversation and changes the atmosphere.” How does it work? Capalad asks clients to pick a brunch spot in New York City based on what they can afford ($US50 minimum) and to fill out a questionnaire about their finances. Then Capalad and her clients meet for brunch to map out their financial future. Capalad invites clients to join her ‘Brunch Club’ to “make serious progress” in their financial future.
Are ETFs dangerous? (Investment News)
At the CNBC/Institutional Investor ‘Delivering Alpha’ conference, activist investor Carl Icahn told BlackRock CEO Larry Fink, “I think BlackRock is a very dangerous company.” Specifically, Icahn was talking about BlackRock’s involvement in the bond ETF space and the risks associated with the product if everyone rushes for the exits at once. However, Christian Magoon, chief executive of YieldShares, has a different view. “The ETFs are more actively traded than the underlying, and they give the underlying market liquidity,” he told Investment News.
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