Home > Aspiring RIAs > News Roundup: Facing tech disruption, a slowdown in breakaways, and financial care-giving

News Roundup: Facing tech disruption, a slowdown in breakaways, and financial care-giving

Practice Management

Financial Planning columnist Bob Veres’ candidate for the most disruptive force in financial planning is a technology that largely goes unnoticed: face-to-screen technology. The ability to communicate virtually opens up big opportunities for client growth and staff or advisor recruitment. But the bad news is, every other advisor in the country (or world) can now compete with you in your chosen market. See the full story below. Also, sales assistants continue to take on greater responsibilities in today’s challenging financial services environment, so it’s important to know what to look for when hiring them. In a column at WealthManagement.com, Wade Wilkinson, CEO of Securities Service Network, outlines some of the top attributes to look for, including “the ability to interface with the broker/dealer effectively.” See his column below.

Most disruptive force in planning today gets almost no notice

By Bob Veres

Source: Financial Planning

Financial planning firms are still trying to figure out what to do about the on-again, off-again DoL rule, and whether robo technology is friend or foe. But my candidate for the most disruptive force sweeping through our professional space is something much simpler and less-discussed: face-to-screen technology.


Top Attributes To Look for in a Sales Assistant

By Wade Wilkinson

Source: WealthManagement.com

It’s no secret that in today’s environment, advisors have more on their plate than ever before. Among the challenges are the continuously changing regulatory environment, demographic shifts that are putting pressure on many of their businesses and the influx of new, “disruptive” technologies that are making it harder to stand out and demonstrate value. It all adds up to advisors having fewer interactions with clients and spending more time dealing with peripheral issues, which means a dedicated, professional and knowledgeable support staff has never been more important.


Recruitment/Aspiring Advisors

Mergers and acquisitions among RIAs slipped dramatically over the third quarter, driven “nearly exclusively by a sharp decrease in breakaway activity,” according to a recent research report from DeVoe & Co. Financial Advisor IQ, outlining details of the report, writes that the breakaway movements in Q3 were about half of what might be considered normal activity for a quarter. Read the details below.  Also, if you’re aspiring to become a financial advisor or want to further your financial services education, take a look at Financial Planning’s annual list of the 95 top schools for financial planning. Information includes the degrees offered, enrollment and faculty numbers, tuition costs, and an overview of the program. See the link below.

Breakaways Take ‘Dramatic’ Dive Post-DOL Rule

By Murray Coleman

Source: Financial Advisor IQ

Dealmaking activity among RIAs slowed in the third quarter to its lowest level in nearly three years, according to a new report on U.S. mergers and acquisitions. The market analysis of RIAs with $100 million or more in client assets, both tuck-ins and firm-wide deals, found a “dramatic” and “unexpected” slip in volume, says David DeVoe. His investment banking and research firm, DeVoe & Co., issued its latest research on domestic activities in conjunction with Nuveen on Tuesday.

“M&A volume had been increasing at a record pace in the first half of 2017,” DeVoe tells FA-IQ. “Now it’s a question mark whether we’ll see a third-straight record year.”


95 top schools for financial planning

By Maddy Perkins, Ross Keith, Tobias Salinger and Sarah Martinson

Source: Financial Planning

Financial Planning’s annual list of colleges with financial planning degree programs, listed in alphabetical order, is drawn from the publication’s survey of colleges and universities that offer CFP Board-registered degree programs. Information includes the degrees offered, enrollment and faculty numbers, tuition, and an overview of the program.


Retirement Planning

The definition of “caregiving” goes beyond health and home care, a new study finds. A Merrill Lynch/Age Wave study shows that 92% of caregivers are performing some kind of financial-related caregiving, reports ThinkAdvisor. After two years of receiving care, 88% of recipients are no longer managing their finances independently, the study reveals. Read the details below. Also, a researcher’s examination of bankruptcies among retirees finds that bankruptcies “may not be a great indicator of retirement income planning failure.” Derek Tharp, research associate at Kitces.com, found that bankruptcy rates for those over age 65 appears to be less than 3 per 1,000, and in fact, bankruptcies decline with age. Tharp delves into the causes of retiree bankruptcies, shows example of people who are more prone to filing, and offers suggestions on how advisors may want to alter conversations about retirement failure in light of this research. See a link to his column below.

‘Financial Caregiving’ Is Widespread and Expensive

By Emily Zulz

Source: ThinkAdvisor

While many aspects of caregiving have been previously studied, financial caregiving remains largely unexamined. A Merrill Lynch study, conducted in partnership with Age Wave — “The Journey of Caregiving: Honor, Responsibility and Financial Complexity” — finds that 92% of caregivers say they are also financial caregivers, performing at least one aspect of financial caregiving during their caregiving journey.


Does Failed Retirement Income Planning Really Result In Bankrupt Financial Ruin?

By Derek Tharp

Source: Nerd’s Eye View blog

In this guest post, Derek Tharp – Research Associate at Kitces.com, and a Ph.D. candidate in the financial planning program at Kansas State University – examines bankruptcy among retirees, finding that the reality is that bankruptcy may not be a great indicator of retirement income planning failure. A retiree who blows through their nest egg doesn’t necessarily end up bankrupt, they simply need to adjust their spending downwards to their new reality. Social Security plus public assistance represent the true consumption “floor” for most. Further, bankruptcy may not even be a great indicator of actual financial strain, as given the rules surrounding bankruptcy, the ways that retirees deplete their retirement assets does not necessarily trigger an actual bankruptcy filing, especially in light of the ways in which bankruptcy laws favor those in retirement.