Advisors have numerous networks for communicating digitally with clients, improving access but raising compliance issues. Technology most firms employ to track and store electronic communication is outdated, says Marty Colburn, former executive vice president and chief technology officer at the Financial Industry Regulatory Authority.
The growth of an independent advisory firm eventually forces owners to decide whether they want to remain a manager or work as a full-time advisor and move someone else to the helm, consultant Angie Herbers writes. Being a leader requires asking questions and influencing employees to perform at the highest level, she notes.
Doubling of the estate tax exemption to $10 million and other changes brought by the Tax Cuts and Jobs Act warrant revisiting of estate plans. Financial advisors should familiarize themselves with the tax changes, talk to clients and adjust estate plans as needed, says Mark Parthemer of Bessemer Trust.
Investors are finding it hard to save for a child's college education, with 38% making no progress and only 15% reaching their goal, according to a survey by Gallup and Wells Fargo. Meanwhile, 71% of respondents have completed a goal of saving for a home, but only 3% of respondents have saved enough for a comfortable retirement.
Half of financial-services professionals who supervise compliance are concerned about communication platforms such as social media, instant messaging and text messaging, a survey from Smarsh finds. Forty-eight percent of respondents say their firm does not have an archiving-supervision system.
Advisers may be able to solve nagging issues by changing their location within the office to gain a new perspective, writes Joni Youngwirth of Commonwealth Financial Network. She says sitting in one's office and trying to resolve an issue, no matter how big or small, often doesn't provide enough clarity for making a decision.
Federal Reserve policymakers agree they should keep raising interest rates, according to meeting minutes, rejecting President Donald Trump's criticism that rates have increased too much. The rate-setting committee says increasing short-term interest rates "would most likely be consistent" with expected economic growth, the minutes show.
A survey from Capital One found that many employees with access to an employer-sponsored retirement plan don't participate because they believe they don't make enough to contribute. However, educating individuals about tax benefits and fees could help encourage participation, says Stuart Robertson of Capital One Advisors.