FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Parents are still paying their grown up kids’ bills (Bloomberg)
A poll conducted by student loan lender Sallie Mae found 36% of parents believe they will be supporting their kids for at least two years after they graduate college. That number is up from 18% in 2014. The results follow a similar survey from Bank of America, which showed 40% of millennials receive some sort of financial assistance from their parents. According to Bloomberg, “Most millennials are reluctant to admit they’re being bankrolled, and struggle with the contradiction inherent in being a self-assured professional and a dependent child at the same time.”
4 ways to become a better leader (Financial Planning)
Financial Planning sat down with Mark Moses, founding partner of CEO Coaching International, and discussed four ways to become a be a better leader. 1) Moses believes all great leaders ask great questions. 2) When establishing a business relationship, administer the ‘canoe test.’ Ask yourself if you would want to spend an entire day in a canoe with that person. 3) Assess your management team and make sure there are no weak links. 4) Focus on experiences and turn them into profits.
Adviser busted in $US11.3 million fraud (Sacramento Business Journal)
The Sacramento Business Journal reports, “The man who is still under indictment for allegedly conning Eddie Murphy’s ex-wife out of $US7 million was found guilty by a federal jury Tuesday in Sacramento in a separate federal fraud case for conning a financial adviser out of $US11.3 million.” Troy Stratos was found guilty on four counts of fraud and two counts money laundering for his $US11.3 million scheme related to the Facebook initial public offering. Stratos told an east-coast financial advisor he was purchasing a large block of stock from Carlos Slim, one of the world’s richest men, at favourable prices. The advisor wired Stratos $US11.25 million dollars, hoping he would be able to sell the shares at a profit. Stratos spent all of the money, and the advisor didn’t receive any of the promised shares.
Vanguard expands its lead over Fidelity (Investment News)
Vanguard reported tax-exempt assets under management for defined contribution clients jumped 15% in 2014 to $US705.5 billion. The US’ largest retirement asset manager extended its lead over Fidelity, which saw assets edge up 1.3% to $US620.2 billion. Third placed BlackRock gained ground on Fidelity, seeing a 10% rise in assets to $US584.8 billion. Investment News notes, “Overall, DC assets overseen by managers in P&I’s universe rose 2.5%, to $US5.35 trillion in 2014.”
New hires in the industry (Think Advisor)
New York Life has elected John Kim president, replacing Ted Mathas, who retains his chairman and CEO roles. Elsewhere, the Mather Group announced James Perkins will join its Chicago team as a senior portfolio analyst. Finally, William Blair’s Boston office has added a private wealth management group consisting of Barbara Cummings, Robert Kjellman, and Carl (C.J.) Young and Karen Eames.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.