RIA Independence

Readers of this publication know the costs of an investment product reduce the net return and consider cost as an important criterion for selecting investments to make up client portfolios. But how do advisors define costs, and how important is cost reduction compared to other portfolio objectives?

Financial journalism has a problem. Apart from a few writers such as Michael Lewis, it is essentially bought and paid for by the financial industry itself – especially, investment management.

European banks are rightly being criticized for failing to pass on interest-rate increases to customers. But is it any wonder they’re so unafraid of losing business? Compared to their US counterparts, European financial institutions often face less competition from alternative cash-like investments.

How good are you at motivating your staff? Are they growing and learning? Are they consistently progressing?

Signs of slowing price pressures and wage growth have generated a lot of excitement about a soft landing for the US economy, where inflation glides back toward 2% without a painful recession.

Federal Reserve officials at their policy meeting in July largely remained concerned that inflation would fail to recede and that further interest-rate increases would be needed. At the same time, cracks in that consensus were also becoming more apparent.

Here are two suggestions that can save you money or time, especially if content marketing is part of your strategy.

In a year of unpleasant surprises from China's economy, here's a development we should have foreseen: The central bank lowered interest rates. With growth disappointing and prices declining, Tuesday's easing from the People's Bank of China ought to have been a no-brainer.

Investors are the least pessimistic on stocks since February of last year, before the Federal Reserve began one of the most aggressive tightening cycles in decades, according to Bank of America Corp.’s latest global survey of fund managers.

Investors are bailing out of the biggest exchange-traded fund devoted to Treasuries at the fastest pace since markets were hammered during the early months of the pandemic.

Unpacking the details of last week’s consumer price index report, the news was good: Inflationary pressure continues to slowly subside, while an economic “soft landing” — in which the Federal Reserve is able to stabilize prices without causing a recession — is starting to look more realistic.

Some couples may have what can be termed "faux" financial intimacy, where there is no tension or conflict because they avoid talking about money.

IUL is a popular investment, thanks to aggressive marketing. Before your clients succumb to high-pressure sales tactics, here’s a cautionary tale based on another lifetime purchase decision – buying an engagement ring.

The old playbook of selling emerging-market bonds when Treasury yields spike is being upended by the positive dynamics favoring developing-nation debt.

Investors hammered Chinese assets and those of developing nations relying on its sustained growth a day after US President Joe Biden described the country’s economic woes as a “ticking time bomb.”

It could take just a 1% move in the S&P 500 — up or down — every day for a week for the rally in US stocks to come under significant pressure.

In 1949, the list of the country’s most affluent metropolitan areas was dominated by Midwestern industrial cities.

A key measure of US consumer prices rose only modestly for a second month, bolstering hopes that the Federal Reserve can tame inflation without sparking a recession.

Twenty years ago, the answer to this question was obvious. Wirehouses had better technology compared to any other firm or affiliation model.

The reaction to Fitch Ratings’ recent downgrading of US government debt was more revealing than the announcement itself. Citing concerns about America’s long-term fiscal position and the risk that Washington’s political dysfunction could make matters worse, the company marked US debt down from AAA to AA+.

Bitcoin may be closer to bursting out of a period of unusually low volatility if chart patterns and the token’s history are any guide.

Advisors are increasingly turning to OCIOs to differentiate their firms, increase profitability and scale their businesses through gained efficiencies.

Berkshire Hathaway Inc. jumped to a record high after its Saturday earnings report showed an operating profit for the second quarter that exceeded Wall Street expectations.

Bulging sales of US Treasuries are about to deliver a major test of investor demand and determine whether a selloff has room to run, as the market braces for the biggest round of refunding auctions since last year.

Investors planning for retirement are facing seven significant challenges.

Admittedly, I’ve glossed over the other catalysts in Ackman’s thesis — including the aforementioned supply-demand issues and the fiscal and governance challenges that Fitch underscored in its recent downgrade — but the inflation call seems to be the linchpin to his argument, at least going by the math in the post.

No amount of power and prosperity can stop the irritation of getting judged for your borrowing habits, as the world’s biggest economy just experienced.

There are days when our trade press is even more misleading than the consumer rags.

You can achieve your business goals via a sale or merger so long as you clearly access and articulate what you don’t want – essentially, your deal breakers.

While there are dozens of variables and decisions that go into transitioning to the RIA model, two of the more meaningful hurdles are registering your RIA and getting a clearing agreement with a custodian.

I wrote this article in 2030 after I interviewed several retirees whose income plans were designed by ChatRET.

There are no immutable paradigms in our profession. Some outcomes are more likely than others, but declaring that something will “never” happen is dangerous.

We must understand our clients’ purposes and how they fit together in their lives. We need to take the initiative when rebalancing is in order.

On May 3, the Massachusetts Supreme Judicial Court heard arguments on whether Massachusetts citizens will get a state-level fiduciary rule. The Fiduciary Institute submitted an amicus brief that said, emphatically, “Yes!” This is why.

Research has shown that investing in IPOs has been a bad deal – you lose money compared to a comparable index fund. But a new paper shows that certain VC-backed IPOs deliver alpha for investors.

In a recent article, I opined on the upper hand that broker/dealers have when terminating their reps. The terms of those departures, as reflected in the disclosure documents, is similarly imbalanced.

The failure of SVB led to a broader concern over the stability of the financial sector. That has led to fears about client assets held at Charles Schwab, But those concerns are overblown.

Should investors build their own portfolios of bonds, or buy shares of bond funds? Is there an economic difference or just one of appearance? Are directly held bonds safer because they mature, and you get your money back? How should one decide?

When weighing the decision to move to the RIA model, advisors must consider the catastrophic consequences to them if they are terminated by their broker-dealer.

Forget ChatGPT, going independent or podcasts. The hottest trend growth-oriented advisors must know is the rise of the fractional marketer.

In the finance industry, the word “compliance” garners a negative connotation. Indeed, it conjures images of being paddled by a schoolteacher.

Going independent entails an immense amount of work that, depending on the size of the practice, can quickly become untenable. I’d like to offer an alternate vision for advisors to consider when pursuing the independent model.

What is social death, and how can you harness it in your marketing?

In failing to hold all those who provide financial advice to a comprehensive fiduciary standard, the SEC enacted Reg BI to enforce a “best interest” standard. Do your clients understand what that means and its implications?

Investors need body cameras. The horrifying images of five police officers beating Tyre Nichols were possible only because of the transparency of police body cameras. Words cannot do justice to what happened to Nichols, but they offer a lesson for the need for transparency in the regulation of advice.