Knowing what not to say to a client after they've lost a loved one is important, as clients expect their financial advisers to be professional in these times, writes the Journal of Financial Planning's Ana Trujillo Limon. Advisers should let their clients talk and avoid phrases such as, "I can't even imagine," "I know how you feel" and "Everything happens for a reason," she advises.
Buyer Beware: Bank Loans Investors have rushed into bank loans, hoping their adjustable coupons will protect them against rising rates. With credit assets looking expensive and the US in the late states of the credit cycle, we think now is a bad time to bet big on bank loans.
Seven traits of superproductive people listed in a Harvard Business Review article "are highly relevant to financial advisers," Matt Oechsli writes. The traits include setting ambitious goals, showing consistency in work and anticipating and solving problems.
Philanthropy is a good marketing tool for financial advisers, says Susan Kay, director of business development at MFS Fund Distributors. Kay, a speaker at the InvestmentNews Women Adviser Summit, offers examples that include hosting a dinner for clients and their friends that requires a donation to attend and contributing an auction basket to clients' charities that includes a certificate for "four hours of organizing your financial records in your own home."
The percentage of families with a 529 savings plan has increased to about 50% from 38% one year ago, according to a survey by the College Savings Foundation. The survey also finds college-savings accounts represent a growth area for advisers.
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Rule changes proposed by the Securities and Exchange Commission to its whistleblower program are anti-whistleblower and largely reflect views of the US Chamber of Commerce, the National Whistleblower Center said. The group said in a letter to SEC Chairman Jay Clayton there is "a compelling need for full and complete transparency as to why the [SEC] proposed this rule, and what lobbying efforts were behind the proposals."
The Securities and Exchange Commission has withdrawn two no-action letters that authorized investment advisers' reliance on proxy-voting services if the advisers had adopted policies to preserve independence. The move is meant to foster discussion of the way proxy services are used, the SEC said.
Jack Guttentag, who has worked for the Federal Reserve Bank of New York and the National Bureau of Economic Research, suggests replacing the 4% withdrawal rule with the "retiree discretion rule." The latter factors in a retiree's age, gender, assets and expected life span, as well as expected inflation and return rates.
Reviewing beneficiary forms for individual retirement accounts with clients is "one of the most valuable services you can provide," IRA expert Ed Slott writes. He calls missing and incorrect forms an epidemic, saying it's too late to fix the problem once an IRA owner dies.
If you haven't already registered to attend the 2018 FPA Annual Conference in Chicago (Oct. 3-5), you're cutting it pretty darn close! Don't miss one of the year's top financial planning events, arming you with knowledge that resonates, connections that matter and content designed to help planners like you turn cutting-edge theory into action. You'll leave the Windy City invigorated and inspired to hit the ground running when you return to the office. Registration closes Sept. 21 -- avoid future FOMO, and register today!
Serve clients in stress and build trust
Some clients may need long-term services and support because of a cognitive or physical health condition, which is often stressful for the clients and their families. Learn how you can tailor your communication skills to meet the unique needs of these clients and proactive steps to effectively advise them by reading this month's Journal of Financial Planning cover story, Advising Clients Under Stress. Continue the conversation by joining FPA's panel of experts in this month's Journal in the Round: Journey Through Clients' Crisis Situations to discover how you can help clients navigate the demands of long-term services and supports (LTSS). Register today.
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