| A weekly digest of news and industry updates for the financial planning community |  |
| Top Story |  |  |
|
- FPA Business Solutions conference highlights new ideas
The Financial Planning Association held its 2012 Business Solutions conference in Burlingame, Calif., last week. Brooke Southall offers his take on the event, including discussions about technology and ways to improve the financial-planning profession. FPA Chairman Marty Kurtz introduced the idea of a peer-review system to help planners meet their fiduciary duties. "The only way the fiduciary standard works is if we stand before it and say: This is me," Kurtz told attendees. RIABiz.com
(3/8)     
-
Join the discussion: What were your key take-aways from FPA Business Solutions 2012? Did you start a good conversation and want to keep talking? The Business Solutions Conference Community is the place to do so. (FPA Members Only)
| Policy Watch | | |
|
- Higher cap for arbitrated settlements could mean more awards
The Financial Industry Regulatory Authority has filed a proposal to increase the cap on arbitrated settlements from $25,000 to $50,000, making it easier to funnel disputes through the arbitration process but potentially leaving reps and RIAs on the hook for larger penalties, experts say. About 10% of disputes are channeled through FINRA's simplified-arbitration process, and regulators expect the new cap will increase the arbitration rate to around 17%. Financial-Planning.com
(3/8)
- Bachus considers revised bill for adviser SRO
Rep. Spencer Bachus, R-Ala., is likely to reintroduce a bill to create a self-regulatory organization for investment advisers this year, a lobbyist says. The draft is unlikely to pass now, but it could receive renewed interest after the presidential election, Investment Adviser Association Vice President Neil Simon says. AdvisorOne
(3/9)
- Give lawmakers a break on gasoline prices, experts say
 U.S. policymakers have few options for bringing down the price of gasoline, which is averaging about $3.75 per gallon, analysts say. Neither the president nor Congress has the power to alter the global markets that shape domestic prices in the short term. "Anybody who says they can affect prices in the next two or three months isn’t being honest," said Robert Kaufmann, chairman of the Department of Geography and Environment at Boston University. The Hill/E2 Wire blog
(3/11)
| Practice Management | | |
|
- Work flows can help firms with IT efficiency, expert says
Documenting work-flow and office processes in a low-tech way, such as on Post-It notes or a white board, is essential to streamlining operations and increasing profitability, ActiFi CEO Spenser Segal said at the FPA's 2012 Business Solutions Conference. "Great technology won't make advisory firms more profitable unless they have a systematic approach," Segal says. InvestmentNews (free registration)
(3/5)
- How to match risk tolerance with retirement withdrawal rates
A client's optimal withdrawal rate can change depending on that client's willingness to risk running out of funds later in retirement. This article offers a framework for planners to tailor withdrawal rates and allocation strategies to meet their clients' shortfall risk tolerance. Clients with higher risk tolerance will likely want to spend more during retirement than clients who are wary of exhausting their resources. Journal of Financial Planning
(3/2012)
-
Join the discussion: What are your thoughts about the article? How do you generally blend risk tolerance with decumulation? Do you have a specific process that you follow that can be shared? Go to FPA's Retirement Planning & Longevity Community to share your thoughts with fellow planners. (FPA Members Only)
- How to navigate the coming shift in retirement planning
Financial advisers need a new approach to retirement planning that accounts for the shift from accumulation to decumulation as well as clients' emotional issues, says Bruce Wolfe of Allianz Global Investors. Advisers should start by talking with a client about asset-to-income ratios when the client turns 55, Wolfe says. Another tip is to map out the strategies that a client should take if the market swings in a particular direction. Financial-Planning.com
(3/7)
- FATCA prompts financial advisers to scrutinize clients' holdings
The Foreign Account Tax Compliance Act is scheduled to take effect this year. FATCA is prompting financial advisers to delve more deeply into the offshore holdings and foreign bank accounts of their clients. "If you have any client with a hint of a foreign connection, proceed with great caution," said Leigh-Alexandra Basha of Holland & Knight. The Wall Street Journal
(3/12)
| Industry Report | | |
|
- Investors stick with active funds despite losses
Lubos Pastor writes about why clients may be choosing to stick with actively managed funds despite the industry's negative track record in recent years. One explanation is that it's more difficult for managers to achieve attractive returns as the industry increases in size. The good news is that performance should improve in the future as investors reallocate to different sectors. However, rather than waiting, investors may want to switch to better performing index funds, Pastor writes. Financial Advisor online/Bloomberg
(3/8)
- Alternatives offer method for investment hedging
Investors should keep between 30% to 50% of their portfolios in alternative investments as an effective hedging strategy, Compass EMP Alternative Strategies Fund manager Steve Hammers says. He recommends looking at historical data to see which funds performed well during the recession, and to consider turning investors toward commodity long-short funds, Hammers says. Financial-Planning.com
(3/5)
- Survey: More rich investors think globally and do their research
Wealthy investors are becoming increasingly global in their thinking and are more likely to make investment choices based on global events, Spectrem Group reports. Wealthy investors are also more likely to do their own research and to be involved in investment decisions. "So even if you’re actually making the decision about their portfolios, make them a part of it and explain why you are doing something," Spectrem research director Tom Wynn says. Financial-Planning.com
(3/8)
-
Join the discussion: What are you seeing among your clients? Have questions about your strategy or a specific country in particular? Visit FPA's International/Cross-Border community to connect with a group of planners from around the world.
| FPA News | | |
|
-
A new look for the VLC
If it has been a while since you visited FPA's Virtual Learning Center, you might want to take a fresh look. You can choose from a calendar of live VLCs, with lower member pricing in most cases, or a library of more than 130 OnDemand courses, organized to help you answer the pressing questions you face as a professional.
- Special FPA Report: Technology
An FPA survey identifies the relationship between advisers' use of technology and their satisfaction with various objectives. Separate articles from the March Journal of Financial Planning examine ways to ease your transition to cloud-based technology, and best practices among advisers who successfully use client-facing Web portals. The Focus article from March also looks into technology, particularly its effect on client relationships.
| SmartQuote | | |
|
 | You can't wait for inspiration. You have to go after it with a club."
--Jack London,
American writer
|
| |
Grab our News Widget | |
| Contact FPA |
Financial Planning Association
7535 E. Hampden Ave., Suite 600
Denver CO 80231
Phone: 800.322.4237
(303.759.4900 International)
Fax: 303.759.0749
Member.Services@FPAnet.org |
|
| |
| About FPA |
|
FPA is the largest membership organization for personal financial planning experts in the U.S. and includes professionals from all backgrounds and business models.
We help connect thousands of consumers to competent and ethical planners who uphold the highest standards. Learn more at
www.FPAnet.org.
|
| |
| Advertise with FPA |
The Financial Planning Association offers both print and online advertising opportunities.
Learn more
or view our
2012 Media Kit.
|
|
| |
| | Recent FPA SmartBrief Issues:
- Tuesday, March 06, 2012
- Tuesday, February 28, 2012
- Tuesday, February 21, 2012
- Tuesday, February 14, 2012
- Tuesday, February 07, 2012
| | | Lead Editor: Tom Anderson
Mailing Address:
SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004 | |
| |
|
| © 1999-2012 SmartBrief, Inc.® Legal Information |
|
|
