People with a net worth between $250,000 and $1 million are poorly served by the advisor community, according to a report from Boston Consulting Group. The report offers three ways to capitalize on this opportunity, starting with understanding subsegments of this group and what they need.
Retirement expert Fred Barstein writes that 401(k) advisors can increase their sales by offering plan sponsors two tiers of service and presenting the most expensive one first. "Starting with the more expensive service will make the lower-tiered service seem very reasonable," he writes.
People can call or write the Social Security Administration to suspend benefits when they reach full retirement age so payouts are bigger later. But first they should consider how doing so would affect the payment of Medicare premiums, as well as the potential effect on family members.
Retirement legislation moving through Congress would allow workers to invest in annuities through 401(k) accounts.
A number of financial professionals weigh in on whether these vehicles are appropriate for millennials, with one noting they may be a good option for particularly risk-averse millennials.
Cross-asset strategists are skeptical of the sustainability of the stock market rally, citing overstretched valuations, a decline in bond yields and trade disputes as potentially disruptive factors. Some have trimmed positions on global equities, with Bank of America strategists estimating investors have lowered exposure to emerging and developed equity mutual and exchange-traded funds by $152 billion this year.
Although financial planners usually experience a lag in business in the summer, Kristine McManus, the chief business development officer of practice management at Commonwealth Financial Network, suggests planners use the season for prospecting. She suggests sponsoring a summer safety session or a local sports team, among other things, to engage with the community.
Transamerica will assume account administration and client service of the Vanguard Variable Annuity business in the next 12 to 18 months. Vanguard will shut down the Vanguard Annuity Access online platform.
Women in their 50s who are married have a higher retirement risk than those who are single, widowed or divorced, according to a study that uses information from the National Retirement Risk Index. Factors include married couples' lack of enough savings for two people in 401(k) plans and the way Social Security benefits are calculated, writes Alicia Munnell, director of the Center for Retirement Research at Boston College.
Rollover recommendations for retirement plans must meet stricter standards once the Securities and Exchange Commission's Regulation Best Interest takes effect, experts say. "This does elevate the standard of conduct for broker-dealers in pretty concrete ways," says Aron Szapiro, Morningstar's director of policy research.
Financial advisors can add value and emotionally connect with their top clients by using four key psychographic motivators, Matt Oechsli writes. Focusing on clients' personal health, family health, financial health and spiritual health can make advisors indispensable to their clients, he writes.