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Financial Roundup: Aspiring Advisors, Interviews, & Understanding Retirement Outcomes

The week’s roundup of must-read news for financial advisors:

Practice Management

Broker-dealers are “reimagining” their business models — and not just because of the influence of the fiduciary movement. Financial Advisor magazine talks with broker-dealer leaders to get their take on the DOL fiduciary rule, their priorities, recruiting, and where they see the industry headed. The article includes the publication’s annual B-D rankings. See the link below. Also, RIABiz tracked down Chip Roame at his recent Tiburon CEO Summit in New York City where he shared his top 10 trends driving the industry. They included: “What baby boomers are/will be doing with their wealth” and “Episodic advice.” Read the full list in the story below.

No Going Back

By Dan Jamieson
Source: Financial Advisor magazine

In this new fiduciary era, broker-dealers see their business models experiencing radical transformation as they evolve into robust solution providers for advisors, not simply back offices and technology providers for hire. And it’s not just the DOL fiduciary rule that’s driving this sea change. Industry executives say the movement to a fiduciary (or similar) standard of care is part of a longer-term trend, regardless of whether the DOL rule goes into effect or whether the SEC ever acts on its own uniform standard of care.


The 10 takeaways Chip Roame imparted at his Tiburon CEO Summit
By Janice Kirkel
Source: RIABiz

When I got to the Ritz Carlton, the doorman shooed me in with a “Get in here. Not nice out there. Better in here!” It was better on the lobby floor, but when I got upstairs to where Tiburon CEO Summit XXXII was in session, I learned I wasn’t really part of the plan. The woman at the registration desk told me that no media were allowed.

Breakaways/Aspiring Advisors

A newly launched CFP Board campaign puts younger advisors in the limelight as a way to promote the planning profession to young and diverse professionals and students. The “I am a CFP Pro” campaign features three young planners who discuss how they became certified financial planners, according to an article at ThinkAdvisor. See the link below. As an aspiring advisor, you can avoid a bad first job by first doing your due diligence on a prospective firm and, second, by asking good questions during a job interview, notes Michael Kitces, during an “office hours” broadcast posted on his Nerd’s Eye View blog. Those questions should relate to financial planning software and use, how the firm generates revenue, and a question like, “Can you describe what I would be doing in a typical week in the firm?” See the full summary in the post below.

CFP Board Launches Campaign to Attract Younger, More Diverse Advisors
By Bernice Napach
Source: ThinkAdvisor

CFP Board Center for Financial Planning has launched a campaign to attract younger and more diverse individuals to the industry. Called I am a CFP Pro, the campaign is accessible online and features a diverse group of young people telling their stories about how and why they joined the profession and invites others to do the same.


Key Questions To Ask In A Financial Planning Job Interview

By Michael Kitces
Source: Nerd’s Eye View blog

When interviewing for a financial planning job opportunity, it can be easy to get caught up in the process. Especially if it’s your first job interview. You want to answer the questions “right”… You want to put your best foot forward… And you want to make a good impression. But the reality is, a job interview should be a two-way street. The firm interviews the candidate, but the candidate is also interviewing the firm! Unfortunately, though, few prospective financial planners really interview the firm they’re applying to work at. And as a result, too many new financial planners wind up in bad first jobs – whether it is a sales job, an admin job, or something else that involves little real financial planning – all by failing to ask good questions of the firm during their interview process!


Retirement Planning

Just because your client has a health savings account, doesn’t mean they fully understand how it can be used — especially in retirement. A recent Fidelity Investments study finds that many people are unfamiliar with the benefits of HSAs. “Fifty three percent of people weren’t really aware of how it would function as they think about retirement,” Fidelity’s Eric Dowley told PLANSPONSOR. Read the full story below. Also, Wade Pfau, in an article at his Retirement Researcher website, explains how investors with the same career history who save the same percentage of their salary for the same number of years can have different retirement outcomes based on sequence of investment returns. See the full story below.

Americans Lack Awareness of HSA Benefits

By Javier Simon

As America’s health insurance industry struggles through a state of uncertainty and Americans face rising health care costs, employers are turning to various strategies to help employees cover medical expenses. One increasingly popular option is the health savings account (HSA), available to employees with high deductible health plans (HDHP). These products help people save and invest for current and future medical expenses.


Why Does Everyone Experience Such Different Retirement Income Outcomes?

by Wade Pfau, Ph.D., CFA
Source: Retirement Researcher

Individual investors are vulnerable to the sequence of market returns experienced over their investing lifetimes. Individuals who behave in exactly the same way over their careers—saving the same percentage of the same salary for the same number of years—can experience disparate outcomes based solely upon the specific sequence of investment returns that accompanies their career and retirement.


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