Home > Aspiring RIAs > News Roundup: Four specialists for your team, Merrill to stay in Protocol, and how to delay or minimize RMDs

News Roundup: Four specialists for your team, Merrill to stay in Protocol, and how to delay or minimize RMDs

Practice Management

Independent advisors can’t operate like an island. Their success lies in creating a network of specialized experts who can address the various needs of affluent clients, writes industry consultant and trainer John J. Bowen Jr. He identifies four key members, which include a private client lawyer, a life insurance specialist, an accountant, and a wealth manager (you!). He explains where to find them and what criteria to use. See a link below to his column at Financial Planning. Also, financial planning is gaining in popularity as an offering by advisors, particularly millennial advisors. A new report by Cerulli Associates shows that close to 50% of advisors now offer planning services, a jump from about 33% four years ago, reports ThinkAdvisor. Read the details below.


The Core 4 you need on your team — and how to find them

By John J. Bowen Jr.

Source: Financial Planning

Advising is a team sport, not a solo act. With financial planning becoming more complex, it’s tempting for independent advisors to want to singlehandedly offer clients a full range of services and products. But trying to do it yourself is a recipe for subpar advice and dissatisfied clients. Instead, the key to success lies in building a network of highly specialized experts to address the needs of your affluent clients.



Why More Advisors Are Offering Financial Planning Services

By Bernice Napach

Source: ThinkAdvisor

Financial planning is becoming an increasingly popular offering among advisors. Almost 50% currently offer planning services to clients, up from just under 33% just four years ago, and millennial advisors are the most avid adopters, according to a new report from Cerulli Associates. “The rising trend of comprehensive planning has swept up millennial advisors who entered the workforce during its growing popularity,” according to the report. “They have already calibrated their practices, including pricing and service models to fit a comprehensive planning structure and many provide expansive planning offerings.”



Breakaways/Aspiring Advisors

Despite the departures of Morgan Stanley and UBS from the Protocol for Broker Recruiting, Merrill Lynch has said it has no plans to leave, according to ThinkAdvisor. At least one recruiter told the publication he’s “pleasantly surprised” about the announcement. Wells Fargo hasn’t yet made a decision. See the full story below. Also, to get the most out of your career, consultant Kelli Cruz suggests setting clear goals and making a plan for “progress, development, education and growth.” In a column at Financial Planning, Cruz notes that you should identify your strengths and weaknesses, network, volunteer for projects, and hook up with a mentor. See a link to her column below.


Merrill to Stay in Broker Protocol; Wells Fargo on Fence

By Janet Levaux

Source: ThinkAdvisor

Wirehouses Morgan Stanley and UBS may have left the Protocol for Broker Recruiting, but Merrill Lynch says it is staying put. Meanwhile, Wells Fargo says it remains undecided about whether it will stay or go. “While other firms are focused on leaving the Broker Protocol as a way of retaining advisors and clients, we’re staying focused on making sure that our advisors have everything they need to serve their clients and grow their businesses,” Andy Sieg, head of Merrill Lynch Wealth Management, told other executives this morning.


How to navigate your career

By Kelli Cruz

Source: Financial Planning

Last year, a 28-year-old New Jersey tourist was traveling in Iceland and accidentally misspelled the address of his hotel into his GPS. He drove nearly six hours before realizing something was wrong. People became fascinated with this story, and it quickly became headline news. How could someone drive around for over six hours without realizing the mistake? As hard as it is to imagine, we have all heard stories about people getting lost following GPS directions.



Retirement Planning

Although you can’t “completely and indefinitely” avoid required minimum distribution (RMD) obligations, there are some ways to minimize or manage their tax bite, opines Michael Kitces in a post at his Nerd’s Eye View blog. One of the strategies he discusses is the “still working” exception and the rolling (if permitted) of outside IRAs into a workplace 401(k), which can delay the onset of RMDs. See a link to his post below. Also, a recent survey by Capital Group finds that 60% of the baby boomers surveyed find life in retirement better than expected. Thirty percent said it meets their expectations, and 10% find retirement worse than expected, reports planadviser.com. The report is titled “Expect the Unexpected: Baby Boomer Lessons on Investing and Retirement.” Read more details from the study below.

Strategies To Minimize Or Delay Required Minimum Distribution (RMD) Obligations

By Michael Kitces

Source: Nerd’s Eye View blog

The benefit of contributing to pre-tax retirement accounts like IRAs and 401(k) plans is the opportunity to receive an upfront tax deduction, and enjoy the growth that remains tax-deferred as long as the investments remain in the retirement account. For those accumulating towards retirement, this provides additional tax-deferred compounding growth that can help bridge the gap towards retirement itself. With the expectation that once someone reaches retirement, they will begin to take distributions – and Uncle Sam will finally get his share of the tax-deferred account.



Boomers Find Retirement More Fulfilling Than They Envisioned

By Lee Barney

Source: planadviser.com

In a survey of Baby Boomers, Capital Group found that, among those who are retired, 60% say that life post-employment is better than they had anticipated. Thirty percent say it meets their expectations, and 10% say it is worse than they expected, with many in this group blaming finances or health. Others point to lifestyle issues, such as boredom, loneliness or the fact they miss work.