Independent advisors differ from their peers at wirehouses and independent broker/dealers in the way they allocate client assets, a study by WealthManagement and FUSE Research Network shows. According to WealthManagement, the survey found RIAs tend to be more diversified, “with allocations spread out across asset classes, including alternatives.” See the full story below. Also, in a column at Financial Advisor magazine, Philip Palaveev, CEO of the Ensemble Practice LLC, describes the difficulties that “lead advisors” encounter as they help a second generation, or “G2,” advisor take on a lead advisor role. He outlines the attributes of a lead advisor and the qualities that G2 advisors need to develop to establish themselves as trusted advisors. The column is an excerpt from Palaveev’s book “G2: Building the Next Generation.” See the link below.
Independent Advisors Diverge From Peers on Investments
By Diana Britton
Although advisors across industry channels seem to be moving in the same direction—toward fee-based, fiduciary models—independent advisors still have differing views on how products should fit into a client’s portfolio.
Taking Over Client Relationships
By Philip Palaveev
Source: Financial Advisor magazine
The lead advisor role is the basic building block of the financial advisory industry and a critical achievement in the development of a second generation (“G2”) professional. Before G2 professionals can become owners, managers or leaders—before they can develop new business or contemplate succeeding the founders—they have to achieve a simple but quintessential milestone: becoming a trusted advisor to a client. They need to take over a client relationship.
New independent advisors are often encouraged to focus on a developing a niche to grow their practice. At a recent XYPN conference, aspiring advisors talked about the niches they pursued and offered tips to peers on how to find, develop and market a niche their first year in business. One piece of advice: Do your homework. See the full story at WealthManagement.com.
Building a Niche in the First Year
By Ryan W. Neal
One thing the XY Planning Network stresses to young independent financial planners is the importance of finding and developing a niche. According to the data from XYPN’s first benchmarking survey, which it presented Tuesday at the XYPN 2017 conference in Dallas, advisors who focus on niche investors bring in double the revenue per client than those who don’t. However, it takes time to develop.
Advisors are in a unique position to ensure that divorcing clients are splitting their IRA funds correctly, notes IRA expert Ed Slott in a column at Financial Planning. He describes a case in which a couple wants to take an amicable approach to splitting an IRA without involving attorneys. One of the critical mistakes? The husband agrees to split the IRA before the divorce decree became final. Read other lessons learned below. Also, Jeffrey Levine of BluePrint Wealth Alliance notes that although rules on calculating RMDs have hardly changed over the past decade, there is still a lot of confusion surrounding them. He points out three common RMD errors that advisors and clients need to be aware of, including confusing “transfers” with “direct rollovers.” See his column at ThinkAdvisor below.
The wrong way to split an IRA in a divorce
By Ed Slott
Source: Financial Planning
Divorce often involves the splitting of major financial assets, and an IRA plan is, in some cases, a couple’s largest single asset. Splitting an IRA in a divorce is not like splitting a home or other assets. IRAs contain their own specific tax rules that must be followed to avoid triggering taxes or penalties. Advisors are in the unique position to help divorcing clients ensure IRA funds are split correctly.
3 Common RMD Errors Advisors Must Avoid
By Jeffrey Levine, CEO, BluePrint Wealth Alliance
The rules for calculating required minimum distributions (RMDs) have barely changed in more than a decade, and yet there’s plenty of evidence to suggest that it’s still one of the areas of greatest confusion for clients and advisors alike. That’s not exactly good news. The penalty for failing to take the correct RMD is stiff — 50% of any shortfall — and the wave of baby boomers reaching RMD age has only just begun to crest.