Results for "Outside-IN"

Oct 17, 2018, 12:42 PM EST

Cheap is great; free will usually cost you


By Barry Ritholtz

There is a basic, fundamental foundation upon which all of economics is built: Everything has a cost. The effort to get around this concept is described informally by the phrase "there's no free lunch."What is a free lunch? The notion historically springs from the saloon owners' offer of free meal to customers. Of course, the price of the lunch is included — hidden if you will — in the cost of the drinks.Which brings us to today's discussion of "cheap" versus "free.""Cheap" is simply less expensive than dear. We understand cheap, and appreciate all of its advantages. Experience teaches us that cheap is good for investors, as costs compound over time and act as a drag on returns."Free," on the other hand, when offered by any for-profit company, should be approached warily. "Free" rarely means costless; it invariably entails concealed charges and expenses. Free requires you to read the fine print, where you learn that free ... Read full post

Oct 15, 2018, 2:06 PM EST

Unleashing my power with Tony Robbins


By Julia Carlson

As an entrepreneur and financial adviser, I have always invested in my education by attending numerous conferences, reading books that promise the magic formula for success, hiring coaches to discover what's holding me back, and working longer and harder to achieve success. It's easy to look for all the answers externally, but what I discovered while attending Tony Robbins' "Unleash the Power Within" event is that the answers are inside us. Regardless of who we are — our backgrounds, education, religion, race or gender — there is a common force that drives and shapes our emotions and actions. It determines the quality of our lives and ultimately who we become. This universal force is our human needs. Although each of us is unique, we are driven by basic primal needs we were born with. The four primary needs, as explained at the Tony Robbins event, are: certainty, uncertainty, significance and love/connection.Understanding ... Read full post

Oct 15, 2018, 3:01 PM EST

How to survive the crash


By Stephen Gresham

Let's prepare for The Inevitable. One of the quirks of human nature is that upbeat investment books offering strategies to make money are routinely outsold by doomsday titles like "How to Survive the Coming Stock Market Crash."For most people, the fear of losing money outweighs the risk of making money — meaning that too often clients invest because they do not perceive their investment as "risky." A bull market lasting 115 months can make a believer out of the toughest skeptic, so we have work to do.Crashes happen, but memories fade — or don't exist in the first place. To help prepare yourself, your practice and your clients, let's start by addressing the new players — those advisers and clients who have not experienced the pain of a market crack.Yes, stocks fell by more than half in the financial crisis of 2007-2009, but that began 11 years ago. Forty-year-old advisers were only 29 and clients on the cusp of... Read full post

Oct 15, 2018, 10:14 AM EST

Providing incentives for annuities within retirement plans


By Tim Walsh

TIAA was founded 100 years ago by Andrew Carnegie to provide college professors with retirement income through employment-based annuities. This was an innovative concept for the time, predating the Social Security system by two decades. The first product was a low-cost in-plan annuity option offering safety, stability and guaranteed income for life. The annuities sold by TIAA became the model for the tax-deferred annuities that form the basis of Section 403(b) of the tax code. Today, the retirement industry is focused on how to translate retirement savings into income that will last for life. There are several reasons for this — in our country, 10,000 people turn 65 each day, and they are living much longer, increasing the amount of time spent in retirement. There's also been a shift from defined benefit to defined contribution plans that, for most Americans, do not include lifetime income features. This makes the plan design... Read full post

Oct 9, 2018, 12:40 PM EST

What financial advisers can learn from Starbucks, Apple and SoulCycle


By David J. Petoskey

People don't go to Starbucks for the coffee. Why do so many people choose Starbucks? It's not for the coffee — it's for the experience. Starbucks has created an entire brand identity around delivering a rewarding experience for customers. It's mastered what's been coined the "experience economy."Financial advisers are taking note. Advisers and firms are moving beyond talking about performance and reporting, and instead looking to the experience economy. Clients care about performance and expect results but increasingly don't see it as a differentiator. In fact, when clients were asked why they switched financial advisers in the last decade, leading responses were "lack of personal attention" (top millennial response) and "poor customer service," second only to "high fees," according to Qualtrics Experience Management research. Clients expect performance, but they crave experiences. Here's a closer look at how Starbucks, Apple... Read full post

Oct 9, 2018, 12:08 PM EST

Using an IRA to fund an HSA


By Ed Slott

Funds from individual retirement accounts generally cannot be rolled over to a health savings account, but there is a one-time exception for a qualified HSA funding distribution, or QHFD.An individual is allowed to transfer funds from an IRA to an HSA account up to the remaining contribution amount allowed for the year, but there are some restrictions.... Read full post

Oct 9, 2018, 3:17 PM EST

Ask the Ethicist: Should a CFP file an ethics complaint about an insurance commission?


By Dan Candura

I spoke at a national conference recently and a CFP professional approached me after my presentation. Call him "Q." He wanted to know if I thought it was worthwhile to contact CFP Board about a potential ethical violation by another CFP professional. We'll call him "LL" since he is also a lawyer and holds multiple designations. The situation involved a high-net-worth business owner's succession plan that Q set up several years ago. The business owner needed life insurance to deal with some transfer issues but had some health issues at the time that made a full solution cost-prohibitive. As a result, and in consideration of the business owner's available cash flow, Q put in place a term policy good for a certain period, but with an option that allowed the policy to be converted to a permanent policy at 1.5 times its death benefit — unconditionally. Q planned to convert the policy before the term policy increased in premium.Enter... Read full post

Oct 8, 2018, 2:01 PM EST

Tim Sloan hasn't turned around Wells Fargo


By Stephen Gandel

What's the appropriate board gift for a CEO's two-year anniversary? If you're Tim Sloan at Wells Fargo & Co., the correct answer is a short leash. Mr. Sloan took over the CEO role in mid-October 2016, which means the anniversary is this week. At the very least, he badly underestimated the problems facing his bank. But he's also been slow to address the issues that have come up since he took over, particularly with regulators, and has yet to fully solve them. And while Mr. Sloan inherited a tough job, two years in it's hard to find a single business metric that has improved.Both loans and deposits are down. Earnings, too, are expected to fall 4% this year from the year when Mr. Sloan took the job, and that's including an estimated $1.25 billion boost from this year's corporate tax cut.During the same period, the bank's three main rivals — Bank of America, Citigroup and JPMorgan Chase & Co. — have each increased loans and... Read full post

Oct 8, 2018, 12:06 PM EST

Fix boomers' ESG dilemma with bonds


By Louise M. Herrle

When it comes to ESG investing, Wall Street's product development boom has produced an abundance of ESG equity funds suitable for many investors with the risk tolerance for equities. This may work for millennials, but what are Baby Boomers or older investors to do if they are interested in environmental, social and governance goals but not in a position to increase or maintain their equity exposure given their advancing age? The answer can be found in the fledgling ESG fixed-income market.... Read full post

Oct 4, 2018, 12:10 PM EST

Jack-of-all-trades client service satisfies none


By Randy Lambert

When it comes to client service, there's no such thing as a one-size-fits-all approach.Advisers contending with fee disruption, changing consumer expectations and the management of growth and succession often ask, "Is this the best solution, or is it just what we've always done?"The same is true for the fintech firms that build the technology those advisers use.Everything from the organization of service teams to the software they use to connect with adviser clients can benefit from feedback and new perspectives. For our part, we saw immediate benefits after updating Orion's client service model two years ago.... Read full post

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