Many New Jersey residents pondering retirement are considering a hasty exit to Florida, writes financial planner Bryan Kuderna. He compares the states based on income taxes, property taxes, education, law enforcement and post-retirement benefits.
Any safe harbor created to encourage defined-contribution plans to offer annuity options should require a review of the annuity carrier's financial strength, say Phyllis Borzi, former assistant secretary for the Employee Benefit Security Administration, and J. Mark Iwry, a former senior advisor at the Treasury Department. Legislation under consideration in Congress falls short in this regard, they say.
Advisors should be skeptical of back-tested results for fixed-indexed annuities, writes Michael Jay Markey Jr. of Legacy Financial Network. With regard to estimating how much of an index's growth FIAs would have participated in during a time when it didn't exist, he warns that "crediting rates are susceptible to changes within an insurer's overall book yield."
Financial advisors are generally too slow to innovate in their practices, which can crimp their growth prospects, said experts at the InvestmentNews Innovation Summit. Among the changes they recommended were outsourcing some functions, moving toward becoming life coaches and having a "planning forward" mindset.
Five inflection points may soon disrupt the business of financial advisors, Matt Oechsli writes. He examines how millennials, fintech, digital marketing, cybersecurity and client mindset are likely to affect the industry.
As consumers grow increasingly sensitive to fees, advisors should seek to justify their fees by taking a holistic approach to financial planning. A holistic perspective includes a clientcentric mentality, consistency and reliability, and going above and beyond expectations, according to a Cerulli report.
The five pillars of marketing for advisors are social media, engagement with centers of influence, community involvement, media relations and advertising, writes Captrust's John Curry. Advisors should treat these elements as an evenly weighted checklist, which will help them figure out what works best, he notes.
Financial advisors who meet a client's heirs at their client's funeral are unlikely to retain control of the families' assets, advisor Kevin McKinley writes. He suggests advisors get to know clients' extended families and offer "to serve as an informal source of financial information."
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