Joe Duran

Duran Duranblog

Joe Duran

Feb 21, 2017, 8:27 AM EST

Winners and losers in the murky DOL fiduciary rule implementation

Money-Main

By Joe Duran

There's plenty of speculation as to what will happen with the implementation of the Department of Labor rule that holds advisers for retirement plan participants to the fiduciary standard. Whether the rule is delayed, amended or implemented, only time will tell. In the meantime, let's discuss the new uncertainty and its impact on the wealth management industry. We should all understand that the rule is well past the tipping point and the industry is forever changed regardless of the rule change. Let's review the three key areas of impact.1. How we deliver our services. The transition of advisers to the fiduciary standard has been occurring for well over a decade and most firms have been on a fast track to adapt over the past year and a half. While the DOL rule expands the application of the standard, the vast majority of brokers, even at the big brokerage firms, already have a growing plurality of their clients and assets being held to ... Read full post

Feb 1, 2017, 5:04 PM EST

Time for financial advisers to reimagine their offices

By Joe Duran

A slew of articles in several media outlets from CNN to TechCrunch have recently highlighted a medical disruptor called Forward that opened its first “doctor's office” in San Francisco in mid-January. I think it holds an important perspective into what is in store for all of us and how our offices operate. The flagship location completely reimagines the patient experience. Unlike the uncomfortable, stuffy waiting rooms most of us are accustomed to, the space is designed with an open, inviting floor plan with interactive gadgets and six private consulting rooms. It is a highly digitized, interactive experience in which patients design their own health plans and have monitors to track their health. This data is measured on their mobile devices and shared with a dedicated team of doctors and nurses 24/7. As if that is not disruptive enough, they charge a flat $149 fee per month to give the patient an initial screening, as well ... Read full post

Jan 17, 2017, 5:58 PM EST

Facebook challenge 2017: Moving beyond money

By Joe Duran

Mark Zuckerberg, founder of Facebook, publicly shared his personal challenge for 2017. He intends to meet people from all 50 states. His stated goal is to use technology to “change the game so it works for everyone.” In order to do that, he is spending the year learning from the customer how his firm can help improve their lives. What improvements would clients of the wealth management industry want from their advisers to improve their experience? As ironic as it sounds, what I've found from my own direct conversations with clients is that they want us to spend less time talking about money and more time discussing their lives.We have built an entire profession reinforcing the importance of building a certain size nest egg and focusing individuals on getting to a magic number. People are encouraged to make personal sacrifices today to provide for a future promise of security. Along the way, no one really knows what the... Read full post

Dec 12, 2016, 9:25 AM EST

Lessons from Google: How advisers can maintain relevance in a changing world

By Joe Duran

Recently I had a fascinating visit to the Google headquarters to spend the morning with their marketing and ideation folks. Google's perspective on how mankind gathers and shares information is illuminating and can teach us all something about how to maintain relevance in a changing world.THE EVOLUTION OF INFORMATIONSince Google has the lofty mission of informing the world, it makes sense that they obsess over how we all consume information. Here is how they view the shifts in consumer behavior over the past few decades:• From the Broadcast Age: Powered by TV, radio and newspapers. Big media created content and we consumed it on their timetable. All communication was one sided and on the timetable of the content providers.• To the Information Age: Powered by the expansion of fast internet access. This era allowed for a massive expansion in reach and scope of information. Consumers have access to more information at their... Read full post

Nov 23, 2016, 11:29 AM EST

Presidential election is a warning shot to financial services industry

By Joe Duran

The U.S. Presidential election turned a lot of heads worldwide. For the first time in modern history, the U.S. elected a commander in chief with no political experience, little of the support traditionally given to the candidate of a major party and none of the big money from business interests. This happening in the same year that British voters surprised everyone by electing to leave the European Union suggests some bigger movement is afoot. Talk about a revolutionary time.These changes were messages from the people about their level of dissatisfaction with the status quo. We are empowered and informed now more than ever. We want honesty and authenticity. Voters have taken it upon themselves to protest a broken system and want a voice in fixing it. That's true in every facet of their lives and now it's evident in politics, too. But it's also a warning shot to our industry.(More: Leadership insights from former President George W.... Read full post

Nov 3, 2016, 4:38 PM EST

Leadership insights from former President George W. Bush

By Joe Duran

I was fortunate to be invited to have dinner and witness a conversation with the 43rd President, George W. Bush, exactly one week before the election. Given my own sense of frustration with the candidates thrust upon us this year, it was an opportune time to listen to someone who sat in the Oval Office and made the tough decisions for eight years. The evening was disorienting in a couple of ways. First, every impression I had of the president given his public persona and media interpretation turned out to be wrong. He was funny, charming, humble and incredibly bright. Secondly, I couldn't believe I was sitting with my lovely wife while getting the opportunity to shake hands and share a joking moment with a former president of the U.S. Considering I grew up in Zimbabwe and came here with $600 in my pocket, it was just unfathomable. Most first-generation Americans say it all the time, but I couldn't help thinking it during the evening:... Read full post

Oct 17, 2016, 2:55 PM EST

The DOL rule kicks in. Will independent broker-dealers survive?

By Joe Duran

A year ago I wrote about the impacts of the Department of Labor's fiduciary standard being applied to our industry and the immense implications. Now we have two important news events with ripple effects that impact every financial adviser in the U.S.On Oct. 6, Merrill Lynch announced they would no longer allow retirement investors to pay a commission for trades when the rule becomes effective next April. A few days later, InvestmentNews reported that LPL, the nation's largest independent broker-dealer, was seeking “strategic alternatives.” These two events are not coincidentally so close together. They reflect the harsh economic realities that differentiate full-service broker-dealers and the independent broker-dealers that have been thriving for the past few decades.(More: Paying for retirement planning in a low return world: Are advisers worth the cost?)MUSCLE OF THE THUNDERING HERD I haven't been a huge fan of how big... Read full post

Sep 19, 2016, 5:36 PM EST

Paying for retirement planning in a low return world: Are advisers worth the cost?

By Joe Duran

At a recent open house hosted by one of our new offices I encountered something quite unusual: Affluent retirees were openly questioning costs in a large group setting. One gentleman commented, “I didn't mind paying 1% in fees when the stock market was going up 12% and bonds yielded 6%, but shouldn't adviser fees be lower now that everyone is making less? Should I just be doing this myself?” Most of the group was either a little taken aback at his directness or nodding in agreement. We probably all have clients wondering the same thing (even if it's in a less public setting). Since the turn of the century we have experienced two 50% declines in the stock market, a real estate collapse and a decline in interest rates from 6.7% to a measly 1.5% today. The DJIA is up only 14% in 16 years. Prestigious firms, including McKinsey and GMO, are forecasting future returns of low single digits for the equity markets. (More: 3 things... Read full post

Aug 16, 2016, 12:42 PM EST

3 things financial advisers need to know when serving female clients

By Joe Duran

I recently watched an Ellen DeGeneres clip where she makes fun of the Bic pen designed for women. Ellen humorously points out the clichés Bic used in designing and marketing its pen. Their “pen for women” is like any other writing instrument, but comes in cutesy “feminine” colors and is double the price of a regular pen. This stereotype-based approach has underpinned many of our industry's efforts to understand female clients. We all know the importance of women investors to the future of financial services, and as such, there's been lots of conventional research about why women are unhappy with our industry. According to the surveys, women don't like data, they are more trusting, they don't like to negotiate and they don't feel as confident as men about finances. LEARNING THE TRUTHInstead of conducting another survey that validated old assumptions, we decided to conduct independent research that allowed women... Read full post

Jul 20, 2016, 2:03 PM EST

Learning and profiting from Gen X

By Joe Duran

Today's era represents the first in history where almost every generation is learning how to interact with the world from their children. Our kids teach us how to use social media, and we teach our parents how to use Netflix. This has led to a manic fascination with millennials and how they consume. The generation born after 1984 certainly is at the crosshairs of innovation; however their parents, the Gen Xers who were born between 1965 and 1983, serve as a superior barometer of whether a company is going to make money or not. Their behavior can provide invaluable insights into how to be successful in our industry for the next few decades. While Snapchat and Instagram are great stories, Facebook and LinkedIn are money makers because they are used by Gen X. The tipping point for any company happens when the 35- to 50-year-olds begin adopting them because they will drag their parents along. Netflix and Amazon make their money by... Read full post

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