Displaying items by tag: advisor

Saturday, 24 September 2022 07:24

Talent Top Priority for RIAs

According to a recent Charles Schwab RIA Benchmarking Study, talent is the top strategic priority for RIAs. This matches a Talent Management Study from San Francisco-based RIA consultancy DeVoe & Co., which showed recruiting is the biggest concern RIAs face today concerning talent. A recent Barron’s article highlighted the challenges RIA face when recruiting advisors. Firms are facing headwinds such as a rapidly aging workforce, a lack of young advisors to take over, loss of talent from the Great Resignation, and competition from mega financial firms. Barron’s highlighted the fact that over one-third of advisors are likely to retire within the next 10 years according to a study by Cerulli Associates. In addition, according to a survey by Ameriprise Financial, advisory firms currently have an average of three open positions at their firms. Some RIAs are turning to college students to fill the talent gap as the competition for experienced advisors is immense, while others are recruiting from banks and offering perks such as firm equity, high cash compensation, and generous payouts.

Finsum:Due to an aging workforce and strong competition, recruiting is a top priority for many RIA firms.

Published in Wealth Management
Saturday, 17 September 2022 04:58

Pillar Life to Sell Annuities Directly to Consumers

A new insurance company plans on selling non-variable annuities directly to consumers. Former Global Bankers Insurance Group executives teamed up to start Pillar Life by forming Pillar Insurance LLC and using the entity to acquire Continental Life Insurance Company. Pillar Insurance renamed Continental Life to Pillar Life last year. The company plans on building a web-based self-service process by April 2023. The insurer has already posted guides to multi-year guaranteed annuity contracts and single-premium immediate annuities on its website. The Interstate Insurance Compact, which is an organization that helps states review product and rate filings, has approved Pillar Life forms for an SPIA contract and a single-premium deferred annuity contract. Pillar Life will also offer life insurance and supplemental health insurance products. For clients, this means they will have more ways to buy annuities on their own. For advisors, however, it will likely make it more difficult to go through the paperwork to find out what clients own.

Finsum:Pillar Life plans on offering non-variable annuities direct to consumers through a web-based self-service model.

Published in Wealth Management

According to the findings of the Advisor Edition of State Street Global Advisors’ Inflation Impact Survey, the vast majority of investors who are currently working with a financial advisor, believe their advisors’ insight and guidance are valued more today during the current period of market volatility and rising inflation. The survey revealed that approximately three-quarters of investors have discussed inflation with their advisors and how inflation will impact their investment goals in both the short and long term. 90% say they value their financial advisors’ knowledge and guidance even more during uncertain times, and 86% believe their advisor has helped them remain confident during the current period of rising inflation and market volatility. The data follows the initial findings of State Street’s Global Advisors’ Inflation Impact Survey that showed inflation-induced stress and anxiety is influencing investor behavior with short-term budgeting and long-term financial goals.

Finsum:State Street’s Inflation Impact Survey revealed that investors are placing a higher value on their financial advisor’s guidance during times of heightened market volatility and inflation.

Published in Wealth Management

According to a survey conducted by Schroder Investment Solutions, more financial advisors are outsourcing investment management to model portfolio services. The survey, which was conducted in May, suggested that the shift towards third-party portfolio management is continuing, with 17% of advisers stating that they have increased their use of outsourced solutions over the past twelve months. The number of advisers that reported outsourcing more than half of their client’s assets had risen from 21% in November to 31% in May. The factors influencing advisor outsourcing include, in order, access to investment expertise and resources, effective volatility management, spending more time with clients, and improved operational effectiveness. For some advisors, investment expertise in sustainable investing has led to outsourcing. Volatility management as a factor reflects an emphasis that advisors have placed on active management during the current market turmoil.

Finsum:Based on the results of a recent survey, more advisors are outsourcing investment management to third-party model portfolio providers due to their investment expertise and volatility management.

Published in Wealth Management
Monday, 25 April 2022 07:49

Morgan Stanley loses Mega Producer Advisor

Cherly Young, a financial advisor and team based in Los Gatos, CA is planning on leaving Morgan Stanley and joining First Republic. She’ll be taking her $17 million in annual revenue and a giant $2 billion book with her. Her all-star status and revenue generation has put her in the upper echelon of California Advisors and ranked her #84 on Barron’s nationwide list. First Republic has put in a lot of effort on building a high-end advisor base, and they have offered a variety of incentives to get there. Still their sales force is a fraction of Morgan Stanley’s which boasts 16,000 brokers, and is still touting positive recruiting results. 

Finsum: Many financial firms are forcing full time in-office work, and First Republic sees remote pitch as a part of their campaign, while MS is caping remote work at 90-days. 

Published in Markets*1
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