FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
These are the worst states for retirement (Bankrate.com)
New York is the worst state for retirement, according to a report by Bankrate.com This is mostly due to the fact that the state has the country’s highest tax burden and a high overall cost of living. West Virginia, Oregon, Arkansas, and Louisiana round out the last five.
On the flip side, the top five states for retirement are Wyoming, South Dakota, Colorado, Utah, and Virginia.
About 7% of financial advisors have a misconduct-related disclosure on record (The Irrelevant Investor)
One out of 13 financial advisors have a “misconduct-related disclosure on their record,” and approximately one-third of advisors with misconduct records are repeat offenders, according to a recently published paper by Mark Egan, Gregor Matvos, and Amit Seru.
Additionally, 44% of advisors who lost their jobs after misconduct were re-hired in the industry within a year.
The National Institute on Retirement Security published a new report stating that women are 80% more likely than men to be in poverty at age 65 or older. Meanwhile, women aged 75 to 79 are three times more likely than men to be in poverty.
“It is well documented that the nation faces a retirement savings crisis, but the pain is particularly severe for women because we need a bigger retirement nest egg than men thanks to our longer life expectancy,” Diane Oakley, NIRS executive director and report co-author, said.
6 ways to attract super wealthy clients (Financial Planning)
Many advisors try to attract high-net-worth clients, as working with them can allow them to decrease their client count, while increasing their income.
In order to attract these types of clients, John J, Bowen Jr. suggests 6 things to do:
- Have a well-defined client experience in place.
- Know your potential alliance partners.
- Identify ideal partners to pursue.
- Begin the consultative strategic alliance process.
- Create and present an action plan.
- Communicate and track progress regularly.
Advisors should get to know their clients’ heirs (Think Advisor)
A survey of over 1,000 investors conducted by MFS Investment Management in 2013 found that 75% of clients said their children has never met their financial advisors. On a related note, only 2% of children stay with their parents’ advisor, according to a PriceWaterhouseCoopers survey from 2011.
“If advisors don’t adapt a strategy for retaining heirs as clients well before the wealth transfer occurs, they’re at risk for losing the assets. To have their businesses continue to thrive and grow, they need to engage the next generation,” Ross Ozer, senior vice president at Fidelity Clearing and Custody Solutions, told Think Advisor.
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