Results for "Outside-IN"

Mar 15, 2019, 1:38 PM EST

The college admissions scandal and the unwarranted reputation of top-tier schools

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By Carolyn McClanahan

The college cheating scandal reawakened a slow-burning anger I've battled for years. I was lucky. I grew up in a household with two parents who loved me. Neither were high school graduates. When my father got out of the Navy at the age of 38, he "retired" to Mississippi and opened a donut shop. From the age of 6, I worked in that donut shop, resentful that I didn't have a normal life watching cartoons on Saturday morning.I became a math whiz by adding the price of donuts in my head. I learned how to deal with people from all walks of life, all buying my dad's donuts. At 4 in the morning, I would go buy a newspaper for my dad and we would read it together while the donuts were rising. That was my coaching to do well in school. When I made a perfect score on the math section of the ACT, the teachers told me I was smart and would be able to go to college. My parents were proud but I had to figure out how I was going to make it happen... Read full post

Mar 14, 2019, 10:21 AM EST

Be sure your clients use nondeductible IRA contributions correctly

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By Tim Steffen

Back in the day, being a good financial adviser meant building a portfolio that provided investors with a maximum return for the minimum level of risk. Now the role of an adviser has evolved to offering thoughtful advice and guidance on a wide variety of financial issues — especially planning for retirement — and that's a good thing for clients.For example, take contributions to an individual retirement account. After maximizing savings to an employer retirement plan, if one is even available, the next-best savings vehicle is often an IRA. However, the tax deduction for a traditional IRA contribution is only available for those who are not participating in an employer plan or whose income falls below a certain threshold. For higher-income clients, a Roth IRA isn't an option, either.That brings you to the nondeductible IRA contribution. Sure, there's no immediate tax benefit, but the tax-deferred growth is still valuable,... Read full post

Mar 14, 2019, 10:16 AM EST

Wealth managers ignore 401(k) plans at their peril

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By Fred Barstein

Many wealth managers and financial planners who never intended to focus on the 401(k) or 403(b) market might nevertheless have a few plans. Most are just accommodating an important client and, at best, view the plan as a distraction. At worst, it's a royal pain, since they must deal with so many unsophisticated investors with low account balances as well as the fiduciary liability under the Employee Retirement Income Security Act.But these advisers should pay more attention to corporate retirement plans even if they never want to become a specialist.(More: The 10 biggest threats for retirement plan advisers)The so-called "accommodators" in the defined-contribution industry might have a client who owns a business or is a high-level executive who asks the adviser to help manage the organization's retirement plan. Many smaller business executives or owners do not want to have to find and deal with an extra adviser, instead relying on... Read full post

Mar 13, 2019, 6:00 PM EST

How to achieve a client-centric practice

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By Ken Cella

Amazon promises a world where algorithms know what products we want before we do. Dog food, a new couch, toothpaste — they'll arrive at our homes with no effort on our part. This model has the power to change how we think about the experience of shopping, and also shape what we expect in other sectors.Financial advisers and clients don't live in a completely algorithm-driven world — yet. But clients are seeking an unprecedented level of personalized attention and service from their advisers. By pursuing a client-centric model — delivering solid financial advice in a trusted human relationship through a highly personalized experience — advisers can deliver unparalleled value. Cultivating great human relationships around goals-based advice will be critical to attract and retain clients, J.D. Power found in a 2018 study. That's backed by a finding that 88% of Americans want technology to complement, not replace,... Read full post

Mar 12, 2019, 5:13 PM EST

Starting a new advisory firm: How to outsource and structure your practice

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By Scott Hanson

This is the second in a three-part series detailing what I would do if I were to move to a new town and start an advisory practice from scratch.In my first installment, on marketing, I described how an adviser should go about acquiring a steady stream of new clients, which is the lifeblood of any practice. Without an effective marketing plan, your business won't survive.In this installment, I want to focus on the structure of the practice, and specifically, what functions it's best to outsource, what functions should be kept in-house and how to organize for growth.The most valuable use of any financial adviser's time is communicating with clients and prospective clients. Time devoted to other tasks, things like investment management or office administrative work, doesn't generate revenue and can suck up a huge portion of an adviser's week.That's not to say those things aren't important, because they are. In fact, there are many... Read full post

Mar 11, 2019, 8:26 AM EST

Baseball, taxes and retirement destinations

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By Mary Beth Franklin

My husband is a huge baseball fan. Me, not so much. But I always appreciate it when he forwards articles about his favorite pastime that are relevant to my passion for retirement planning.Case in point: Bryce Harper's decision to sign a record-setting 13-year, $330 million contract with the Phillies was partially based on taxes, according to a recent article by Los Angeles Times sports writer George Skelton. Competing offers from the L.A. Dodgers and the San Francisco Giants couldn't overcome the burden of California's top state income tax rate of 13.3% compared to Pennsylvania's low flat rate of 3.07%. Mr. Harper's agent, Scott Boras, said the tax savings from signing with the Phillies rather than a California team "could be almost a full year's compensation." While most clients' income is a mere fraction of Mr. Harper's record-setting salary, keeping an eye on how taxes affect their net income can have a significant impact on their... Read full post

Mar 11, 2019, 12:13 PM EST

Boost your reputation with content marketing

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By Sheryl Rowling

Getting new clients is all about reputation. Reputation is your most important asset. Doing a great job for your current clients is, of course, the best reputation builder. But to stand out, you need to do more, whether that's an article in a local paper or something on social media. My firm has found that content marketing is a great strategy.Let's start with a definition: according to the Content Marketing Institute, "Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action." Simply put, content marketing is creating an informative resource that will help boost your firm's reputation with current and potential clients.Choosing a content project depends on several factors:• Which market you want to target.• Where you have expertise.• How ... Read full post

Mar 8, 2019, 10:31 AM EST

5 reasons you're not reading this cybersecurity article

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By Sid Yenamandra

Cybersecurity articles are notoriously unpopular with financial advisers compared with other industry news, unless it's something drastic like Voya's recent slip-up exposing advisers' Social Security numbers on its website. When it comes to financial technology, advisers are more likely to peruse something like T3's 2019 Software Survey than they are to learn about how cybersecurity best practices can save them from costly damages tied to data breaches. I don't think this is about boredom. Based on conversations with advisers and wealth management executives, I've come up with five reasons why you are not reading this cybersecurity article. Those reasons might surprise you, and spark positive action. 1. You trust yourself, your third-party vendors and in-house staff to be careful. Chances are you have discussed cybersecurity threats and written cybersecurity policies adhering to Securities and Exchange Commission or Financial... Read full post

Mar 6, 2019, 5:26 PM EST

100% required minimum distributions

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By Ed Slott

Can it ever be the case that an individual retirement account's required minimum distribution, or RMD, for a year equals the entire IRA balance? Yes, but that only happens if there is no designated beneficiary. A designated beneficiary means an individual beneficiary named on the IRA beneficiary form. Often there is no designated beneficiary, either because no beneficiary was named on the beneficiary form or the named beneficiary is not an individual but instead is an estate, charity or non-qualifying trust. Even if the IRA eventually goes to an individual beneficiary, if it gets to that beneficiary through the estate for example, then there is no designated beneficiary. The 100% RMD occurs when there is no designated beneficiary and the IRA owner died before his or her required beginning date (April 1 of the year following the year the IRA owner reaches age 70½).In that case, the entire inherited IRA must be paid out under the so-... Read full post

Mar 6, 2019, 4:28 PM EST

Future retirees ponder Social Security strategies

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By Mary Beth Franklin

I often get questions from people who were born in 1960 or later about whether it would make sense for them to delay claiming Social Security benefits beyond their full retirement age of 67. My usual answer is I don't know. Much of that decision will be tied to prevailing interest rates at that time.Delaying Social Security benefits until age 70 has been a very valuable decision for many current retirees. They were able to accrue delayed retirement credits worth 8% per year for every year they postponed collecting their benefits beyond their full retirement age, up until age 70. Someone entitled to a full retirement age benefit of $2,000 a month at 66 could increase their benefit by 32% over four years, to $2,640 per month, if they waited until 70 to claim the benefit.In reality, their future benefit would be even larger because all the intervening cost-of-living adjustments from the time they became eligible for Social Security at age ... Read full post

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