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News Roundup: Biases that impact decision making; More recruitment at indies, regionals than wirehouses; hybrid LTC strategies gain momentum

Practice Management

Before making a business decision, it’s important for advisors to be aware of biases that can influence the decision-making process. Industry consultant Zohar Swaine outlines common biases, such as the “rush to act” bias and the anchor fact bias, that can lead to faulty decisions. “Once RIAs recognize their biases, they can put checks and balances in place to make more thoughtful decisions,” he writes in a column at Financial Advisor. Also, Ron Carson, a high-profile executive in the RIA channel, has announced plans to be an “aggressive buyer” in the industry this fall thanks to capital from private equity firm Long Ridge Equity Partners, Financial Planning reports. In addition, Carson said he is rebranding his Peak Advisor Alliance coaching service to Carson Group Coaching. See the full story below.

The 7 Most Common Biases Holding RIAs Back, According To Zohar Swaine

By Zohar Swaine

Source: Financial Advisor

Advisors who run successful RIA firms have mastered the art of making smart business decisions amid suboptimal conditions and external pressures in the wealth management industry. This is a rapidly evolving industry, and RIAs find themselves under constant pressure to innovate and respond to competition while growing assets and profit margins.


How Ron Carson aims to become an RIA ‘super firm’

By Charles Paikert

Source: Financial Planning

After a period of relative inactivity following his hybrid advisory’s vendor switch to Cetera Financial Group from LPL Financial earlier this year, Ron Carson, one of the industry’s most prominent executives, is promising renewed aggressiveness in the RIA marketplace. Acquiring firms tops Carson’s to-do list.



Recruiting at independent firms and regional broker-dealers is exceeding new hires at wirehouses, according to Financial Planning. Hiring announcements show that the “big four” have recruited advisors who managed about $14 billion in client assets while their smaller rivals brought on new recruits who oversaw about $60 billion, the publication reports. See the full story below.

Recruiting surges at regionals, indies ― wirehouses not so much

By Andrew Welsch

Source: Financial Planning

It’s shaping up to be a strong recruiting year ― just not for the wirehouses. “I’ve got five recruiting meetings in the next day and a half. At a wirehouse, if you had five recruiting meetings in a month you would be the star of the country,” says Jim Gold, CEO of Steward Partners. Recruiting momentum at independent firms such as Steward Partners as well as regional BDs and those that assist breakaways is outpacing the wirehouses.


Retirement Planning

Sales of standalone long-term care policies have been falling, while hybrid or “combo” life insurance sales have been on the rise, Financial Planning reports. Why the change? “Some clients are concerned about paying for standalone LTC insurance and not using it,” advisor Herb Daroff told the publication. He and other advisors describe some of the hybrid products they are using and why. Read the details below. Also, a recent survey by Nationwide Retirement Institute finds that only about 20% of people 50 or older work with an advisor who provides guidance on claiming Social Security benefits, InvestmentNews reports. The report also found that in many cases it was the client, and not the advisor, who initiated the conversation about how and when to claim benefits. See the link to the story below.

New strategies for insuring long-term care

By Donald Jay Korn

Source: Financial Planning

Long-term care insurance may be going out of fashion, but long-term care coverage? That’s a different story. While sales of traditional LTC policies have fallen sharply in recent years, life insurance policies and annuities that carry LTC benefits are surging in popularity. “Many people don’t want to use the traditional LTC approach,” says Randy Becker, a planner and owner of Becker Retirement Group in Bellevue, Washington. “They’re concerned about rising premiums, the risk of a company failing or the possibility of not needing the care … all at a time when they will have limited resources.”


Demand for Social Security advice growing

By Mary Beth Franklin

Source: InvestmentNews

Less than 20% of older Americans work with a financial adviser who provides guidance on when to claim Social Security benefits. Despite the low incidence of this type of holistic financial advice, it marks an improvement from recent years, according to a new survey of Americans age 50 or older by the Nationwide Retirement Institute.


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