Whether you have plans to overhaul your firm’s compensation structure or just want to make some tweaks, consultant Kelli Cruz, in a column at Financial Planning, offers advice on what questions to ponder first. For example: Is the plan competitive? Does it reinforce teamwork and cohesiveness? Etc. She discusses cost-of-living adjustments and incentive pay as well. See the link to her column below. Also, industry tech specialist Bill Winterberg, in an interview with ThinkAdvisor, weights in on LPL’s move to offer a team of virtual assistants to help advisors on an as-needed basis. In a Twitter post, he noted that he was “50/50″ on the offering, stating: “While I applaud efforts to work efficiently, bifurcating the client’s service experience doesn’t seem ideal to me.” He suggests the assistants might be helpful for solo practitioners, but the situation could get sticky for several advisors who rely on one administrative assistant. See the full story below.
Time to rethink your firm’s compensation plan?
By Kelli Cruz
Source: Financial Planning
As we enter fall and the fourth quarter, you may be pondering a change to your compensation structure for next year. Although it is extremely critical to develop a salary plan that is profitable for the firm, I suggest considering the broader business context first when making changes. This involves reviewing the company’s strategic priorities, the product and service mix and the approach to finding new business and retaining existing clients. Analyzing these elements will help to determine which incentives and pay rewards should be offered.
Pros & Cons of LPL’s Move to Add Virtual Assistants: FPPad’s Winterberg
By Janet Levaux
At LPL Financial’s yearly conference in Boston this week, CEO Dan Arnold and other executives have kept advisors (and reporters) on their toes with a series of important technology-related announcements. Recent news focused on a new mobile app for clients with a rollout planned for 2018 and a team of virtual assistants that would help advisors as needed. Later, the independent broker-dealer said its robo-offering, Guided Wealth Portfolios, will be rolled out starting in mid-August.
The trend in aging advisors appears to be reversing. A new study by TD Ameritrade finds the median age of lead advisors has dropped from 50 to 47 since 2015, reports ThinkAdvisor. In addition, the median years of experience for an advisor has dropped from 20 years in 2015 to 18 years. The trend is attributed to more firms hiring recent college grads. Read the details below.
Advisors Are Getting Younger: FA Insight
by Emily Zulz
The financial advice industry is getting younger, according to the 2017 FA Insight Study of Advisory Firms: People & Pay. The report from TD Ameritrade Institutional, which acquired FA Insight in 2016, draws on data received from 388 financial advisory firms. It finds that the median age of lead advisors has slipped by three years to 47 since 2015.
For most people, the decision to delay Social Security past full retirement age is a smart one. But where do you get your income in the meantime? InvestmentNews outlines several ways to help you hold off on drawing Social Security benefits — aside from working longer. One option is for the spouse with the smaller Social Security benefit to claim earlier so the other spouse’s benefit can grow. See the story below. Also, Morningstar’s Natalie Choate explains some of the problems that can result from leaving an IRA to a charity (or charities). “The key to success is plan for distribution of these assets during the estate planning phase,” she writes. Read the details below in her column at Morningstar.
How to fund a Social Security delay
By Mary Beth Franklin
The math is simple: For every year a person postpones claiming Social Security beyond full retirement age, benefits increase by 8% per year up to age 70, boosting benefits by up to 32%. The catch: What to do for income until then? For an increasing number of older workers, the answer is easy: Keep working.
Leaving An IRA to Charity
By Natalie Choate
Question: My client wants to leave his estate, which includes a substantial IRA and other assets, to a collection of individual and charitable beneficiaries in varying percentages. Some of the charities are big and some are small churches or 501(c)(3)s. It would make sense to fund the charities’ shares with the retirement benefit asset (the IRA) because the charities will pay no income tax on the IRA proceeds, whereas if the individuals’ shares are funded with IRA assets their net inheritance will be reduced by income taxes. Is there a way to accomplish this?