Wealth Management
Deferred annuity sales increased by nearly 19% in the first quarter compared to the same period last year, according to Wink, Inc. This surge sets the stage for annuities to potentially exceed $400 billion in sales this year.
Sheryl Moore, CEO of Wink, attributes this growth to the upcoming fiduciary rule implementation on September 23, which is driving a "fire-sale mentality" among producers and carriers. The new Retirement Security Rule will extend the Department of Labor's fiduciary duty to most annuity sales.
Total first-quarter annuity sales, including immediate and deferred income annuities, reached $105.7 billion, with notable performers like Athene USA leading deferred annuity sales. Wink also noted strong performance in various annuity types, with record sales in indexed and structured annuities, indicating robust market activity ahead of regulatory changes.
Finsum: This spike could be sustained by falling interest rates that increase annuity demand.
In 2024, the Michelin Guide saw new additions including ten Bib Gourmands, four Green Stars, and six One Stars in the Golden state alone. This year, California continues to impress with fifteen new entries. LA County features standout spots such as Manohar’s Delhi Palace for North Indian cuisine and Elf Cafe for Mediterranean fare.
Cedro Italian Restaurant in Newbury Park offers authentic handmade pastas, while SoCal’s taco scene welcomes Lola Gaspar. But it’s not just the West Coast that is popping with starts, New York which already boasts over 300 Michelin Guide restaurants has some new additions.
Thai food fans will find themselves delighted by a family inspired restaurant Bangkok Super Club from Chef Max Wittawat. Meanwhile Barrio is a newly added Puerto Rican restraint featuring vibrant colors to match its delicious meals.
Finsum: The Michelin Guide hosts a variety of restaurants to impress clients across the culinary spectrum.
For financial advisors specializing in high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients, partnering with an experienced firm is essential. Trying to cater to both general and niche clients can dilute an advisor's effectiveness.
Vance Barse, founder of Your Dedicated Fiduciary®, exemplifies how leveraging a seasoned partner can enhance client service. With over a decade of experience advising HNW clients, Barse emphasizes the importance of addressing both financial and family dynamics in legacy planning.
Comprehensive analyses of clients' financial situations and legacy goals, providing independent reports without requiring asset consolidation can help draw HNW clients. This consultative approach offers tailored, sophisticated strategies while maintaining a high level of personal service.
Finsum: Technology can also bridge the gap to give advisors time to personalize their clients experience helping draw in HNW clients.
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Locking in current rates can be beneficial before the Fed cuts interest rates. Holding bonds until maturity offers potential yield, though buying individual bonds can be complex so investors should prioritize vehicles like SMAs to achieve the goals with less complexity.
Additionally, scalable solutions like individual bonds in SMAs or iBonds ETFs can be used to build bond ladders, providing steadier income. Amid high interest rates and an inverted yield curve, bonds may outperform cash, especially during a Fed pause.
Advisors can enhance portfolios by adding longer maturity exposures. ETFs and SMAs help add income and stability to portfolios before the next rate cycle while simplifying the approach.
Finsum: There is something to locking in yields, but keep in mind bond prices will fall if the fed cuts rates but holding to term will be beneficial
Choosing the right dog breed for your family can be challenging given the variety of unique breeds available. Known for their unique traits, several large dog breeds stand out in the U.S.
The Komondor, with its distinctive white cords, and the shaggy, high-spirited Grand Basset Griffon Vendéen are remarkable for their appearances and histories. The Belgian Laekenois, the rarest of Belgium's native dogs, is notable for its rough coat. The Puli, an ancient Hungarian breed, is thought to be a direct ancestor of the poodle. Lastly, the giant Leonberger, affectionate and great with kids, is a mix of St. Bernards and Newfoundlands, making it a devoted but high-maintenance pet.
Each breed brings something special to the table, helping you find the perfect match for your personality and lifestyle.
Finsum: While dogs and pets more widely are great companions, they are also great points of mutual interests with clients, and come with their own unique financial precautions such as insurance.
Direct indexing is increasingly popular as investors seek personalized options and lower costs. This method, which involves owning a representative sample of securities in an index, offers benefits like reduced costs, individual tax lot ownership, and increased tax efficiencies.
However, to fully realize these benefits, direct indexing should be implemented within a single multi-manager account (UMA) rather than standalone accounts. This approach allows for effective tax loss harvesting, consistent exposure to the reference index, and avoids disallowed losses due to wash sales.
Managing a portfolio within a UMA also simplifies administration and enhances rebalancing and asset allocation efficiency. When switching firms, advisors can use UMAs to minimize capital gains taxes for clients by absorbing satellite holdings into the core direct index.
Finsum: We know the benefits of tax-alpha but these account types could give investors an additional edge.