Displaying items by tag: wealth management

Estate planning is becoming a key differentiator for financial advisors, with 80% of clients expecting support in this area, yet many advisors still overlook it. A significant gap exists in tax planning, as nearly 90% of clients worry about tax impacts, but less than half have taken proactive steps. 

Beyond taxes, estate planning ensures smoother asset transfers, addresses state-level taxes, and clarifies how heirs receive funds. Many clients also lack knowledge about trusts, particularly the benefits of revocable versus irrevocable structures. 

Advisors who integrate estate planning into their services are growing their books faster by attracting new clients and strengthening relationships.

Finsum: Advisors who ignore it risk losing assets to competitors who offer these essential services.

As the wealth landscape evolves, the number of high-net-worth individuals is on the rise. And that means financial advisors who can cater to their complex needs will be in high demand. Are you prepared to meet the challenge?

Our infographic provides key strategies to help you become the go-to advisor for these discerning clients, such as:

• Leveraging professional designations
• Offering diverse financial strategies
• Using technology as a service tool

Are you ready to seize this growth opportunity? Transform your approach to serving high-net-worth clients today.

Download the infographic here.

Commonwealth Financial Network®, Member FINRA/SIPC.

Advisors nearing retirement often focus solely on finding the right successor, but switching broker-dealers can be a powerful strategy for a smoother transition. Aligning with a forward-thinking broker-dealer can attract a larger pool of potential buyers by offering advanced technology, competitive compensation, and broader recruitment options. 

This move can also position advisors to achieve a higher valuation for their practice, making the transition more financially rewarding. Though it may seem like additional effort late in a career, joining a progressive firm can simplify the process and enhance long-term outcomes. 

Succession planning isn’t just about finding a partner; it’s also about creating the optimal environment for a successful exit. Financial advisors should consider how changing broker-dealers could unlock new opportunities for a rewarding and seamless transition.

Finsum: As we approach one of the largest transition periods in American financial history, consider how your future broker can aid in this transition and provide additional value to your business. 

Parkwoods Wealth Partners LLC has recently launched a new platform aiming to support registered investment advisors (RIAs) with their growth and succession planning. The platform has integrated its first partner, FMF&E Wealth Management, a Syracuse-based RIA managing approximately $358 million in assets. 

Founded by industry experts including Al Sears and Ed Edwin, who have deep connections with Dimensional Fund Advisors (DFA), and Chris Gardner, formerly of FMF&E, Parkwoods plans to scale nationally. The firm is designed to help advisors maintain their independence while benefiting from centralized services like compliance and trading. 

This model provides a pathway for long-term continuity and succession, focusing on maintaining professional autonomy. Parkwoods is actively looking to partner with RIAs that value evidence-based investing and a client-focused approach.

Finsum: Leveraging all the tools at your disposal can allow you to optimize your succession plan. 

In a blog post, Bill St. Louis, FINRA’s head of enforcement, said that more Reg BI cases are ‘in the pipeline’ and that ‘disciplinary actions have been increasing’. He added that these cases in the pipeline involve Form CSR, excessive trading, complex products, and variable annuities. 

Two recent enforcement actions involved the use of social media influencers for customer acquisition. FINRA fined Cobra Trading $200,000 for paying social media influencers with larger followings to promote the firm. According to the agency, these promotional posts made false claims and were not fair or balanced. Similarly, M1 Finance was fined $850,000 for social media posts made by influencers on the firm’s behalf that violated FINRA’s guidelines. 

Given that a growing share of the public now gets news and information about investments from social media, the agency is conducting regular sweeps. Firms are also required to conduct a consolidated audit trail. According to St. Louis, most firms are in compliance with these reporting obligations, but some audit cases are also in the pipeline. 

Finsum: FINRA is stepping up enforcement of Reg Bi. Two recent enforcement actions were due to firms improperly using social media for promotion.