FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisers.
Robo-advisers have arrived, and there’s an on-going debate over whether or not investors should incorporate them into their firms.
Already many big financial groups such as Charles Schwab and Fidelity Investments have added robo-advisers. But not everyone sees value in them.
“I don’t believe in automation for client service. When a client calls, it is a unique opportunity for us to interface with you, find out how things are going, and sell you another product,” Michael Bloomberg said. In fact, his namesake firm recently terminated its own robo-advisory product.
Holding Gold In Yen Terms Actually Has A Positive Effect On Your Portfolio (Advisor Perspectives)
“The strong trend in correlation between gold and the dollar and gold and the yen have driven the outperformance of gold in yen versus gold in dollars while at the same time resulting in lower realised volatility for the investor,” writes Ade Odunsi.
The current market has seen “strongly negative and falling correlation” between the yen and the USDX, but a “strongly positive and rising correlation between” gold and the YEN/USD FX rate, writes Odunsi. “This suggests a strong three way relationship whereby the dollar also impacted the yen with the weakening versus the dollar even as the gold price fell.”
In simple terms, what happens from an investor’s point of view is that the negative performance of the gold in dollars “was largely offset by the positive performance of the dollar versus the yen.”
Society’s Money Taboo Needs To Change (Investment News)
Advisers need to change the way they work with couples: instead of meeting with spouses individually, advisers should hold joint meetings so they can resolve financial decisions together.
Right now, there is a cultural taboo about discussing finances together. 80% of spouses admit that they hide financial purchases from their spouses because they are afraid that it will cause a domestic problem. But advisers can help alleviate these issues with restructured meetings.
“The byproduct of this revolution would be healthier couples and stronger families. Advisers would benefit as well as they would increase client loyalty, retain more assets and be the next generation’s logical choice as their trusted adviser,” writes Kathleen Burns Kingsbury.
Wells Fargo Just Swooped Up A Nearly $US1 Billion Team From JP Morgan (The Wall Street Journal)
Wells Fargo just acquired the Reed, Gates, Strait Wealth Management Group team from JP Morgan’s private bank. The team manages nearly $US1 billion in assets.
“The team, which focuses on high-net-worth clients, managed more than $US972 million in combined assets and deposits and had $US5.95 million in revenue, a Wells Fargo spokeswoman said,” according to Michael Wursthorn.
Wells Fargo also nabbed four advisers from Ameriprise Financial Services and Merrill Lynch last month.
Even Middle Class Couples Need To Consider Long Term Care (Financial Planning)
“41% of middle class people between 56 and 62 face high risks of not being able to pay for basic living expenses and health costs in their later years” and “one-third of men and two-thirds of women aged 65 and up will need to enter a nursing facility at some point in their lives,” according to Financial Planning.
As a result, it makes sense for middle class couples to consider Long Term Care policies. Although many LTC policies are seeing rising costs and shrinking benefits, there are some policies available that pay almost $US300 per day — significantly higher than the standard $US150 per day.
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