Wealth Management
While social media can help financial advisors connect with younger clients, expert Diane Delaney emphasizes the importance of creating personalized experiences for them. Delaney, Executive Director of the Private Risk Management Association (PRMA), advocates a three-pronged strategy alongside social media efforts:
- Personalize engagement for each client.
- Use a combination of online and in-person communication.
- Offer options based on individual needs.
Understanding the younger generation’s financial concerns is crucial, as they face unique challenges like student debt and inflation. Delaney suggests using authentic, jargon-free communication and real-life examples to resonate with this generation. Additionally, social media can be a valuable tool for educational content, such as podcasts and short videos, to better reach younger audiences.
Finsum: Leverage technology to personalize both communication and service with clients.
Investors are increasingly drawn to exchange-traded funds (ETFs) for passive income and capital growth, with demand surging recently. By June, European ETFs surpassed $2 trillion in assets under management, with a notable 88% year-on-year increase in funds raised.
Two notable ETFs for passive income are the iShares Euro Dividend UCITS ETF, which offers a 6% yield, and the L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF, with a 4.6% yield. Both funds provide solid dividend income and diversification, though they have their own risks, including economic downturns in their respective regions.
ETFs offer significant advantages, such as risk management through diversification across various assets, including stocks, bonds, and commodities. While individual stocks might yield higher returns, ETFs can still be highly profitable over time.
Finsum: Now might be an important time to diversify to the UK with elections and interest rate volatility shocking U.S. and Asian markets.
In 2023, pickleball’s popularity surged, with 13.6 million Americans taking part, almost matching baseball's 16.7 million players. This represents a significant increase from the previous year, continuing the sport's rapid growth. The rise in core participants, those playing frequently, grew by 111%, highlighting a dedicated player base.
Other sports also saw increases, with off-course golf, ice skating, and bowling all experiencing growth. Overall, 78.8% of Americans engaged in sports or physical activities, marking a steady increase over recent years, particularly among those aged 65 and older.
While team sports faced a decline in core participation between 2019 and 2022, 2023 showed a rebound, with notable increases in indoor soccer and team swimming.
Finsum: In many ways recreational facilities are becoming total social experiences offering the necessities for an ongoing communal experience.
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The Supreme Court's recent decision to overturn the "Chevron deference" doctrine is expected to significantly impact the financial industry, creating greater regulatory uncertainty. This doctrine, based on a 1984 precedent, previously allowed government agencies to interpret the laws they administer with substantial autonomy.
Experts like Prof. Richard Lazarus from Harvard Law School anticipate that the ruling will disrupt the legal system, as much of lawmaking over the past 40 years relied on Chevron deference. Regulatory agencies such as the SEC, Federal Reserve, OCC, CFPB, and CFTC will now need to draft rules more carefully to align with specific statutory language.
Despite the potential for less regulation, large banks and industry groups have largely remained silent on the decision, though the American Bankers Association has expressed that the ruling underscores the necessity for federal agencies to operate within their statutory limits.
Finsum: We’ll see how tightly regulation becomes as an issue leading into falls major election.
The 2024 Summer Olympics are heading into their second weekend, marked by historic moments and unforgettable highlights.
Simone Biles' triumphant return captivated audiences as she led Team USA to gold and won the all-around competition, solidifying her status as the greatest gymnast of all time. Meanwhile, Novak Djokovic is on the brink of achieving a career golden slam, needing just one more victory in the men's singles tennis finals. Controversy has also emerged, with the Chinese swimming team embroiled in a doping scandal after positive tests for banned substances were attributed to food contamination.
This combination of thrilling athletic feats and off-field drama has made the Paris Olympics memorable. The excitement continues to build as athletes push the limits of their sports, creating a truly historic event.
Finsum: Additionally, the social media world went crazy as a variety of characters emerged out of the competitive shooting competitions.
Active decisions made by asset managers in creating and maintaining index-based products should be transparent to investors, and the CFA Institute has developed a framework to assist in this. This framework aims to improve transparency, communication, and investor understanding of innovations such as smart beta ETFs and direct indexing.
It explains index-based strategies according to their level of active decision-making, placing indexing on a spectrum beyond traditional market cap weighting based on strategy, sources of returns, and level of discretion.
Rhodri Preece, CFA, highlights the outdated nature of a simple bifurcation between active and passive investment products, emphasizing the varied design features and layers of active decision-making in index-based strategies.
Finsum: Moreover, advisors need to be more familiar with these products because they bring solid advantages to clients.