FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Rich Americans trust old white guys the most for financial advice (InvestmentNews)
A Spectrem Group survey found that when individuals with $100,000 to $5 million to invest were asked to select a financial adviser based only on a photo of eight people (four women and four men), about one-third of them selected the older white male, reports Liz Skinner.
The proportion was even greater when investors had more investable assets: about 40% of those with $5 million or more chose the older white male.
“Whether you look at the responses from males versus females, or among different age cuts, or even among various ethnicities, the older white male was the one the greatest percentage picked,” said Randy Wostratzky, a director at research firm Spectrem Group.
3 reasons why you shouldn’t freak out about China just yet (The BlackRock Blog)
Although most folks are pessimistic about China, BlackRock’s Terry Simpson delineates three reasons why we shouldn’t freak out about it just yet.
- China’s debt level is a problem — but it’s not at an imminent debt-crisis level.
- The Chinese economy still has the potential to grow, even though it might not be in the double-digit rates anymore.
- Policymakers recognise what needs to be done when it comes to implementing reforms.
“Bottom line: Don’t give up on the Chinese economy and Chinese equities just yet, but be prepared for market volatility as China’s new chapter is written,” argued Simpson.
Here’s where people are relocating in the US (Business Insider)
Using the Census Bureau’s latest estimates, Business Insider’s Andy Kiersz created a map showing net domestic migration between July 2014 and July 2015 as a percentage of the 2014 population in America’s big cities.
Most of the nation’s metro areas saw net negative migration, shown in red on the map, while some metro areas, particularly in the South, had more people move in than leave, indicated in blue:
Student debt is an obstacle for millennial investors (FA Magazine)
A new study from the Plan Sponsor Council of America (PSCA), a Chicago-based not-for-profit representing employer sponsors of retirement plans, found that 27% of retirement plan sponsors said a “moderate number” of millennial employees have cited student loan debt as an obstacle to saving.
There are a bunch of different strategies advisors can use to lure affluent clients (Financial Planning)
John J. Bowen Jr., the CEO of CEG Worldwide, outlined several strategies that advisers can use to lure affluent clients. Among the strategies he recommends are telling your personal story, tapping into social media, and offering yourself as a resource.
“These strategies don’t rely on traditional marketing or advertising. Instead, they use emotion and fascination to position advisers as go-to experts in their markets,” he wrote. “They leverage existing relationships in creative ways to help advisers get more introductions to new prospects. And they use technology to help advisers reach out to the exact types of clients they are seeking.”
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