Wealth Management
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Rhodri Preece, CFA, highlights the outdated nature of a simple bifurcation between active and passive investment products, emphasizing the varied design features and layers of active decision-making in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.
Being an independent financial advisor gives you the freedom to design your business, but it also requires finding the right support to manage associated challenges. Choosing a broker-dealer that aligns with your business model and values is crucial for success.
In your next broker dealer, you need to make sure they can provide you with essentials for managing and growing your platform. These include client service teams, research insights and marketing expertise.
Evaluate potential partners based on their technology, service quality, and transition support to ensure they enhance your practice. The right broker-dealer will help you thrive and achieve your business goals.
Finsum: Keep in mind a combination of what your current broker dealer is lacking and potential innovations when selecting a new BD.
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When evaluating an annuity, the advisor typically presents an illustration that outlines future values and any applicable surrender charges.
For a multi-year guaranteed annuity (MYGA), focusing solely on guaranteed values without much variability, except for potential market-value-adjustment penalties during the surrender period. On the other hand, a fixed indexed annuity features a more complex illustration, including guaranteed cash values and hypothetical future values based on favorable market performance. These annuities earn interest tied to changes in a market index like the S&P 500, offering the security of principal protection even if the index declines. However, the growth is limited, as you will only receive a portion of the index gains.
Understanding the specifics of these illustrations is vital, particularly distinguishing between the different types of value presented to clients.
Finsum: Annuities can be complex but understanding your client’s interest can put them in the perfect vehicle.
Dividend-paying ETFs offer a solid approach to generating passive income. The Schwab U.S. Dividend Equity ETF (SCHD) stands out for its robust American-made dividends and strong fundamentals.
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) provides stability with companies that have increased payouts for 25 consecutive years. The Vanguard High Dividend Yield ETF (VYM) combines high yields with broad risk distribution, tracking the FTSE High Dividend Yield Index.
These ETFs cater to investors seeking reliable income without the complexity of managing individual stocks. With their diverse portfolios, these funds help mitigate risk while ensuring steady dividend payouts. They represent a straightforward, efficient way to build a dependable income stream through dividends.
Finsum: Dividends are nice, but as we head into potential volatility maybe bonds are worth considering for income investors.
The state of television was in flux as writers and actors were on strike in 2023, but elevated television is in an incredible place. Here are the three best shows of the year so far:
- "House of the Dragon" is a must-watch for fans of the "Game of Thrones" universe, delivering rich storytelling and complex characters set in the politically charged world of Westeros. With stunning visuals and a gripping plot, this prequel dives deep into the history of House Targaryen, providing context and depth to the lore fans love.
- "Presumed Innocent," a legal drama based on Scott Turow's novel, captivates viewers with its intricate plot and intense courtroom scenes, exploring themes of justice, betrayal, and morality. The show's strong performances and clever twists make it a compelling watch for anyone who enjoys a good mystery.
- Lastly, "Ren Faire" offers a delightful escape into the whimsical world of Renaissance fairs, blending humor and heart. The series captures the unique culture and vibrant community of these events, making it both entertaining and endearing.
Finsum: We are seeing really interesting trends develop in the TV landscape and straight forward dramas like presumed innocent might be making a comeback.