BNY Mellon Wealth Management released its inaugural Charitable Giving Study a couple of weeks ago. It was a survey of 200 people with at least $5 million in AUM. It painted a vivid picture of high-net-worth investors’ behaviors, attitudes and experiences towards charitable giving. Some of the key findings included that only 56% had a charitable giving strategy, and that the top motivators for giving were personal satisfaction and connections. Here to discuss the findings of that study in Crystal Thompkins.
Financial Planning
Incomparable or Uncomparable, Which are You?
Advisors seek to be incomparable, or better than the competition. But this marketing tactic creates a neck-and-neck race that they can’t win. Instead of being incomparable, choose to be uncomparable.
Seven Least Expensive States Based on Retirement Healthcare Costs
Since healthcare costs are the number one fear in retirement for Americans, this article will focus on which states are the least expensive to retire in based on healthcare costs.
Common Scenarios for Transitioning a Private Foundation to a Donor Advised Fund
What are the most common scenarios that give rise to private foundations converting to DAFs (or making a thoughtful decision not to convert), while preserving the original donor’s intent and satisfying the administrative concerns of surviving family members?
My State Flunked Financial Literacy. How About Yours?
My CFP peers must be tired of hearing me sing the praises of living in South Dakota. But one of them recently emailed some disturbing news. A recent national survey that ranked financial literacy placed South Dakota in 49th place.
Five Touchpoints to Build Family Relationships
Here’s how to position yourself for a lifetime of relationships by creating better touchpoints with a client’s family.
The Emperor of All Risks
Because the consequences of leaving longevity unmanaged are likely to be the most devastating, advisors must act now to address it.
The Doomed-to-Fail Marketing Tactic
Here are a few important ideas for my readers on making cold pitches and trying to gain traction in the market with those you don’t know and who don’t know you.
Opportunities in Tax Efficiency
I have identified a few opportunities within my portfolio and wealth management practice that prompt consideration for your own strategies as you plan for large estates.
Why Your Financial Planner Needs a Financial Planner
I would be very concerned if my financial planner didn’t have their own planner. Research shows that financial planning results in increased emotional and financial wellbeing, even for clients who are planners themselves. Use our Premium membership to add your logo to this article and send it to your clients and prospects.
Trends in Charitable Giving Among Wealthy Families
BNY Mellon Wealth Management released its inaugural Charitable Giving Study a couple of weeks ago. It was a survey of 200 people with at least $5 million in AUM. It painted a vivid picture of high-net-worth investors’ behaviors, attitudes and experiences towards charitable giving. Some of the key findings included that only 56% had a charitable giving strategy, and that the top motivators for giving were personal satisfaction and connections. Here to discuss the findings of that study in Crystal Thompkins.
The Current and Future State of Model Portfolios
This article is relevant to financial professionals who are considering offering model portfolios to their clients.
How I Protect Against the Coming Market Crash
Those who are familiar with my articles know that I see market crashes in stocks and bonds occurring in this decade, combined with serious inflation. Readers ask how I recommend protecting. This is it.
U.S. Workforce: May 2022 Update
We've updated our monthly workforce analysis to include the latest Employment Report for May. The unemployment rate remained at 3.6%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) came in at 390K.
Parents Are Buying Homes for Kids Priced Out of the Housing Market
Even as the US real estate market shows signs of cooling, inflation and higher interest rates are making it difficult for young house hunters to buy properties — at least on their own.
How to Smash the Competition Using Advice-Only Planning
The advisors who figure out how to work with Generation Z will take your wealthy Baby Boomer clients away. Stop rolling your eyes and listen to why.
A Framework for Working with Foreign-Born Families in the U.S.
Using this five-question framework will go a long way to help you be effective as you work with foreign-born families in the U.S.
The Latest Look at the Total Return Roller Coaster
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $15,778 for an annualized real return of 9.2%.
ESG Investing Is Heading for a Reckoning, Says One Veteran Manager
The ESG investment industry may be headed for a reckoning and many companies won’t survive this period of higher interest rates.
Real-Life Strategies to Mitigate Sequence-of-Return Risk
I’m going to review the research on safe-spending rates and then critique common methods of risk mitigation. I’ll offer the practical methods to reduce sequence-of-return risk that I suggest to my clients.
Your Mortgage is Not a Hedge Against Inflation
Homeowners should take a total-balance-sheet view when evaluating options for their mortgage.
Staying the Course No Longer Works?
Is long-term strategic investing out the window? To earn returns in today’s market, you need a team that will rethink your investment philosophy and strategy.
The Hidden Opportunity to Serve Millennial Clients
We’re here to talk about misconceived notions that advisors have about millennial investors. While it is often reported that millennials are rejecting financial advisors, my guest says this is not the case. The biggest issue that he sees is that financial advisors have minimums that make it difficult to serve millennials at the tail-end of the age bracket (those born between 1990-1996, or age 26 to 32). That cohort typically has not accumulated enough money to meet the minimum requirement needed to work with fee-based advisors.
64% of workers worry about Social Security availability
A retirement income plan can simplify Social Security and boost retirement plan success. Get our insights to help your clients and their workers succeed.
The Danger Posed by Cryptocurrency Regulation
The executive order signed by President Biden in March is clearly the first of several steps that will bring the IRS and regulators closer to your crypto wallet.
Breakaway Implications: The Impact Your Firm Partner Can Have on Efficiency
You may think that going independent means you’ll have less time for client interactions—after all, you’ll have an office to run. Well, that’s not true for breakaway advisors who partner with the right firm. A recent Cerulli Associates study breaks down how much time breakaway advisors save by partnering with Commonwealth. You’ll get stats such as:
Take control of how you spend your time. Are you ready to make an informed decision about your independence? Get started today.
Are You Selling a Verb or a Noun?
Meet a woman driven to change investment regulation and understand why it’s important that she succeeds.
How to Handle the DOL’s New IRA Rollover Rule
How are advisors coping with the new Department of Labor (DOL) rollover rules? Here are a dozen observations.
How to Help the Sandwich Generation Assess LTC Risk
Advisors can help the sandwich generation assess their risk for LTC and protect financial goals with the right approach to insurance.
How to Give Your Clients Peace of Mind
Every advisor will agree with the goal of giving their clients peace of mind. But there’s mounting evidence few actually do. Why is that?
How Breakaway RIAs Can Retain Annuity Trails
RIAs can be paid to service trails-paying annuities without a broker-dealer.
Don’t Believe in the “Safe Withdrawal Rate”
A fatal shortcoming lies beneath the academic papers that have relied upon “back-testing” to promote the 4% rule. Use our Premium membership service to add your logo and send this to clients.
How to Tell if a Fund is All it Claims to Be
There are thousands of mutual funds that offer to select stocks and bonds for your portfolio. But which ones are right for you? Use our Premium membership service to add your logo and a note from you and forward it to your clients.
Beware of Faux Financial Planning
Whenever I surf television cable news channels, I see the plethora of ads for financial planning. But they are run by companies that sell financial products or are owned by huge insurance companies.
The Elusive Benefits of “Lite” Annuities
This article explores the benefits of annuities with lower explicit fees, a category I dubbed as “annuities Lite” in a previous article that focused on GLWBs.
Your Stocks, SPACs and Crypto Are Tumbling. Now What Do You Do?
It’s been a brutal stretch for retail traders. Stocks are approaching a bear market. A selloff wiped $200 billion off cryptocurrencies in a single day. And Morgan Stanley found that amateur investors who jumped into the market when lockdowns began in 2020 have lost all their gains.
Biggest Mistake: A Great Stock and a Great Investment Are Not the Same
“That’s a great stock; I think I’ll take a big position in my portfolio.” That’s how all too many investors make their investment decisions. Mistake, big mistake. Use our Premium membership service to send this to clients and prospects with your firm’s logo.
How to Save Your Budget With Inflation Running Hot
Surging inflation showed little sign of abating last month, indicating that grocery bills will keep going up, markets will remain volatile and investors will continue to feel pain in their 401(k)s.
Don’t Bother Paying Off Student Loan Debt Right Now, Advisers Say
Since President Joe Biden was elected, millions of Americans with student loan debt have waited for him to fulfill a campaign promise of forgiving at least $10,000 per borrower. While Biden recently extended the payment moratorium for the loans until Aug. 31, pressure is mounting on the administration as the midterm elections approach.
19 Reasons to Run Like the Wind from Direct Indexing!
I don’t care how many PhDs are going to argue against me; direct indexing is Wall Street’s attempt at squeezing more fees out of the America public using advisors as the pawns.
Crafting a New Retiree’s Tax Strategy
Retirement is the most important goal clients discuss over the course of their professional relationship with advisors. One key piece is the way in which taxes are paid.
The Surprising Financial Impact of Mindfulness Meditation
What does meditation have to do with money? By becoming aware of our thoughts and feelings, we are more likely to make financial decisions that are consistent with our values, life aspirations, and authentic goals.
Book Review: Your Essential Guide to Sustainable Investing
Larry Swedroe and Sam Adams’ new book, Your Essential Guide to Sustainable Investing, resolves the confusion in sustainable investing.
The Urgent Changes to Improve Your RIA Website
Unless RIAs modify their communications strategies, the failure to address the need for retirement income communications will be felt for years.
Why Joe Namath May Be the Biggest Threat to Your Clients’ Retirement
“Agents are standing by” to help your clients make one of the most pivotal financial decisions of their retirement… a decision that will blindside you as their advisor and throw even the most carefully crafted retirement plan for a loss. Sometimes, a very big loss.
Spring Clean Your Business Plan
From organizing your closet to deep cleaning your kitchen, we're sure there's plenty for you to do. But we've got one more item to add to your list – spring clean your business plan.
When Financial Planning Becomes Therapy
You will wear a therapist hat on top of your wealth manager cap.
The WisdomTree Q2 2022 Asset Class and Risk Factor Review and Outlook
Regular readers of WisdomTree blogs know that we are firm believers in both asset class and risk factor diversification when building our Model Portfolios.
This Year’s Top-Ranked Software Products
Here is the just released our 2022 T3/Inside Information Software Survey. It ranks, by market share, the leading software solutions in advisory-firm tech stacks in 35 different categories.
Using Analytics in Wealth Management: The Good and Bad (Part 2)
Forward-thinking advisors have been searching for and employing analytics very carefully. This series will explore some of these metrics, along with their benefits and pitfalls. Today’s topic is capital markets assumptions.
The Income Annuity is the Constrained Investor’s Life Jacket
Imagine that you have joined some friends for a day of fishing. About two miles offshore, you sense that something is wrong. The small, single engine boat’s handling has changed. There seems to be more. Use our premium service to add your company’s logo and send this to clients.
Market Timing: A Fool's Game
Markets don’t have feelings or morals. They do not care what an investor needs and there is no investment or strategy that has consistently provided returns well in excess of those earned in the broad markets. Use our premium service to add your company’s logo and send this to clients.
The Ultimate Retirement Income Planning Guide for Advisors
As more and more people approach their golden years, you may see a shift in your practice—from a focus on accumulation and growth to one of income and distribution. It’s important that you’re prepared to not only ensure that your clients have enough to live comfortably, but to help them properly allocate the assets they have.
Are Advisors Ignoring Mergers?
Many advisors would greatly benefit from scale yet are hamstrung by the very temperament that led to their success in the first place.
Five Ways to Create Urgency and Win Planning Business
Here are five ways to win new business and clients for life by creating urgency, so your prospects want to create a financial plan now with you.
Why Are Bequests to Charity So Rare?
Only 5% to 6% of people 50 and older include charitable giving in their wills.
Financial Literacy Month: An Opportunity to Empower Investors
Each April, we are moved by hope – it is financial literacy month. To help close the growing savings gap, we strongly feel financial literacy and better knowledge of retirement and financial planning fundamentals are critical to securing more stable financial futures.
How Four Firms Built Powerful Digital Brands
Your firm’s digital messaging and visual expression must all align with your ideal clients’ needs, goals and objectives. Here is how four top advisors achieved that goal.
Stop Acting Like You Can Do Everything
Hire before you need help. You’ll win no awards for all the extra work you’re doing.
How Our Vocabulary Shapes Our Client Relationships
Our words help us dress up or dress down for the occasion.
How to Think About Annuities
Depending upon the annuity that is being recommended and its purpose, your discovery process should include these questions. This article is written for clients and can be forwarded to them using our Premium Membership Service.
Millennials Save for Retirement Years Earlier Than Boomers — Because They Have To
Millennials took one look at their financial future and, early on, realized it was bleak. The YOLO generation started saving for retirement — stuffing away money in 401(k)-type accounts — nine years earlier than their baby boomer parents did, according to a new study.
Helping Clients Determine When They Can Retire
Can I afford to retire? Is it the right time? Here is how I answer those questions from my clients.
Ask Brad: Are You Really a Big-Rig Truck Driver?
Comparing advisors to big-rig truck drivers makes more sense that you think, once you consider the eerie similarities in their business models.
Why RIAs Are Going to Lose in Retirement-Income Planning
Does the scenario below sound likely? If so, you are among the thousands of RIAs who are likely to lose significant assets over the next decade.
GLWB Lite: Lower Costs but Much Worse Benefits
While the lower fees associated with GLWB Lite products make them seem more attractive, the expected income is significantly lower than other annuities.
How to Plan Retirement Income for a Constrained Investor
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
2025: The Post-Ken Fisher World of Annuities
RIAs must align their communications, planning methodologies, and product set with the needs of retirees, especially women, whose chief priority is reliability of income more than return on investment.
How Much Should Advisors Charge Small Accounts?
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
Helping Your Clients Define the Meaning of “Wealth”
In my work with clients, one of the most important services I provide, in addition to coaching on finance, estate planning, and investing, is facilitating cross-generational conversations about what it means to have wealth, and especially about what it means to use wealth wisely.
You Shouldn't Skip Your Student Loan Payments
Federal student loan borrowers have been granted another reprieve, but for those who can afford it, the most prudent thing to do is to just fork over the money. Almost everyone has been taking advantage of the moratorium, which allows borrowers to press the pause button on payments without any interest accruing. Just 500,000 borrowers out of 43 million, or 1.1%, were still making payments a year after the freeze was initiated in March 2020 as part of pandemic relief efforts.
Student Loan Forgiveness Is an Idea Whose Time Has Gone
Most Americans say the most important problem facing the country is inflation — and President Joe Biden just made it worse. His administration announced last week it would extend yet again the emergency suspension of student loan repayments, even as his frenemies on the left are urging a program of complete forgiveness of all student debt.
Net, Net, Net: Expenses, Taxes and Inflation Can Eat Your Nest Egg – What To Do?
As dangerous as it is to simply extrapolate past returns into future expectations, an even bigger mistake is planning a financial future based on nominal gross returns, forgetting about how large bite expenses, taxes, and inflation will take from the bottom line. Use our premium membership service to forward this article to clients with your logo.
Highlights From Our Market Outlook Summit
Watch replays for CE credit. We recap the webinars presented at our Market Outlook Summit.
Demographics, Gender and Wealth: Profiting from The Retirement Income Revolution
How to Work with Foreign-Born Families - Part 2
I discuss cultural and technical challenges and ideas that will lead to a successful client relationship when working with this group of great clients.
Marketing for Female Solo Practitioners
While putting together a marketing plan is more complex than reading an article, here are three important pieces of advice to get female solo practitioners started.
Intergenerational Transfers for UHNW Clients
Family wealth transfers are complicated conversations. My guest, Jim Bertles of Tiedemann Advisors, has managed those conversations among his many UHNW clients and their millennial children. He has extensive experience overseeing and coordinating these transfers. Jim and I will discuss the dynamics of a successful family wealth transfer. I will ask Jim about the questions he is encountering with beneficiaries and what insights advisors should be sharing with them. Jim believes that advisors should work towards creating strong relationships with these younger beneficiaries now, as they will need ongoing advice to update their plans as major life changes occur.
What Clients Value in a Financial Advisor
We are a service industry. Before we try to sell clients anything, we need to stop and consider what they want.
Financial Planning Challenges Facing Foreign-Born Individuals
I’m one of the 45 million foreign-born individuals who now call the U.S. home. I knew enough about budgeting, but struggled with financial decisions from day one, as this was a completely new system to me.
Using a Nevada Incomplete Grantor Trust as Part of a Business Exit Strategy
This article provides an overview of the benefits of using a Nevada Incomplete Non-Grantor Trust (NING) as part of a business sale to reduce or eliminate state income taxes and capital gains taxes.
Best Way to Persuade – Be Fluent in Real-People Language
After spending many years in the planning profession, I’ve found that advisors place superfluous importance on speaking intelligently and comprehensively.
Harold Evensky: Is This Time Different?
Geopolitical upheaval and rapid inflation have driven volatility and, with that, questions from clients about whether to reposition portfolios defensively. In my wide-ranging conversation with Harold Evensky, he explained how he responds to fears that this time is different.
The Price Advisors Will Pay for Ignoring Flat Fees
I’ll take an order of flat fees (otherwise known as retainers) with a side of financial planning. Customers are lining up out the door for this.
Will Your Health Care Directives Protect You?
For decades, financial experts like myself have implored clients to have a health care power of attorney. Now, some health care experts say you don’t need one because they don’t work.
The ‘Great Retirement’ Disconnect That Puzzles U.S. Economists
The pandemic pushed millions of older Americans out of the labor force. It should have spawned a surge in Social Security benefits applications — but it hasn’t. Perhaps because they aren’t retired.
Wednesday's Weekly Perspective: March 23, 2022
ICYMI: In this roundup, we’re highlighting the five most popular pieces of content from the previous week.
Five Ways to Get More Referrals Online
Here are five winning tactics to leverage immediately for more online introductions.
Keep Your Eye on DeFi: A Look Into The Growing Decentralized Finance Movement
DeFi is creating a new financial system that doesn’t rely on traditional intermediaries like banks or insurance brokers, providing more freedom and creativity.
The New Defined Contribution Landscape
The pandemic hastens the evolution of the DC plan landscape and challenges plan sponsors to evolve.
Starting a Diversity Journey: The Wealthspire Story
We describe how an intentional and sustainable vision for diversity and inclusion at Wealthspire took form.