Displaying items by tag: financial

A financial advisor succession plan? It’s a component, of course, of a strategy to pass the baton of a practice to another advisor. Long and short term planning’s typically is part of the plan, according to assetmark.com.

It could be that one component of the plan is the outright sale – internally or externally -- of the business. Or you might add a junior advisor as your successor down the road or pass it to a family member.

Face it: a retirement plan’s a big time consideration for independent financial professionals and, often, comes down to them establishing a succession plan for their business. 

A trio of benefits stemming from proactive succession planning include: 

Peace of Mind

A succession plan to add to the value of your business and enhance its marketability and:

Provide you an opportunity to prepare next generation advisors

Organizations; yes, they get it. Succession planning’s nothing to poo poo at. That said, when it comes to pulling it off well, it’s a different story, according to delotitte.com.

It takes having the right leaders doing the right jobs at, you’ve got it, the right time, as most organizations recognized years ago. Even so, not many of those very companies have managed to be  proactive, not to mention, disciplined, about carrying out succession planning processes that strike gold, the site continued.

By the end of the year, a goal of the Financial Industry Regulatory Authority is to examine 1,000 broker-dealers for Reg bi compliance, according to Bill St. Louis, head of Finra’s National Cause and Financial Crimes Detection Program, reported advisorhub.com.

That’s no small potatoes, considering that the total would account for about a third of the organization’s approximately 3,000 member firms. Compliance flaws in half of its exams were linked to the rule, which is more than two years old, last year.

An update of an annuity sales standard was adopted by Georgia, Illinois and Tennessee, according to thinkadvisor.com. It was developed by the National Association of Insurance Commissioners.

The update was designed by the NAIC to abet the U.S. Securities and Exchange Commission’s Regulation Best Interest sales standard. Its been adopted by a minimum of 33 states.

Failure by enough states to uniformly adopt the update might mean that the SEC could lasso the ability to oversee some aspects – at the minimum -- of sales and fixed annuities, some regulators think.

Direct indexing? It seems you’re on.

It’s the next large splash in the financial industry, according to comparebrokers.co. And, get this: it’s under consideration as the future. In investing, that is.

Direct indexing’s been around the blocks a few times, of course. It’s been available in this country for, well, decades, according to nucleuswealth/com. Sparked by factors such as affordability and the personalization of portfolios, direct indexing’s popularity’s burgeoned.

Rather than tooling through a motherlode of available ETFs, you can personalize passive investments with direct indexing.

Damien Klassen, Chief Investment Officer at Nucleus Wealth, says: “Direct indexing is the next generation of exchange-traded funds – ETFs 2.0. Direct indexing involves the investor owning the individual shares that make up an index in a separately managed account.

“Because the investor directly owns each of the shares in their own account, they can (customize) their superannuation or investments. “Where an index mutual fund, an index ETF or traditional superannuation fund merely tracks the index, direct investing allows investors to control their investment decisions. Investors can modify their portfolios by creating ‘tilts’, which is the ability to remove or add certain holdings or sectors according to personal preferences.”

Last June, Kiplinger reported, as far as adoption among investors, direct indexing’s had gained the upper hand over both ETFs and mutual funds. Unique benefits that can’t be mirrored in a traditional ETF or mutual fund structure available through direct indexing, and that’s especially so around personalization and tax management. 

It’s been, um, shaky times, for Silicon Valley Bank. Perhaps you’ve heard.

Well, Wall Street certainly has. On the heels of the air going out of the balloon of the bank, U.S. Treasury markets have been enduring volatility to the max, reported reuters.com.

The ICE Boa MOVE Index (.MOVE) – a measure of anticipated treasuries volatility – has exploded beyond its high in the face of COVID. Today? It’s around levels experienced, during -- you  probably had a hunch -- the financial crisis.

Traders were compelled to reverse their bets on steepling rates in light of expectations the Fed would pause or ease up on increases in interest rates given the lighting fast fall of the bank, coupled with  Signature Bank’s.

Earlier in the year, Deloitte issued a banking and capital markets outlook in which, among other things, it laid out the global economy’s remaining fragility entering the year, according to deloitte.com. Uncertainties? You betcha, such as those stemming from a cocktails of factors, including the invasion of Ukraine, a topsy turvy supply chain, barreling inflation and a global tightening of monetary policy.

Banks, over the long run, the outlook continued, should look past product, industry or business model boundaries and seek new sources of value.

You know those weekly company zoom meetings? Well, over the next decade, a number of today’s financial advisors will be no shows. What, were they recipients of all inclusive get out of jail cards?

Um, nope. Instead, the bulk of them are in the waning days of their careers and over 100,000 will call it a day over the next decade, according to advisorperspectives.com.

Thing is, only 27% of advisors had a succession plan -- or a formal preparations to transition their practice of an kind – according to findings from a 2018 survey by the Financial Planning Association.

That said, succession planning’s a big decision for financial advisors to keep in mind and generate a plan for, according to figmarketing.com. That way, of course, the brand and your clients will say make hay in the aftermath of your departure.

When it comes to a succession plan, toss the cookie cutter out the nearest window. There’s a host of structures and steps available, of course, to design and plan that will accommodate your specific needs.