Home > Aspiring RIAs > News Roundup: FAs expect revenue to rise; CFP certifications above 80,000; and RMD, retirement tips

News Roundup: FAs expect revenue to rise; CFP certifications above 80,000; and RMD, retirement tips

Practice Management

Independent financial advisors foresee a rosy 2018, a new TD Ameritrade RIA Sentiment Survey shows. Three-fours of the advisors surveyed say they expect their firms’ revenue to increase this year, reports Financial Advisor IQ. The publication outlined various key findings from the benchmarking report, including the fact that the revenue growth of RIAs averaged 15% in the last half of 2017. Read the full details below. Also, mergers and acquisitions in the RIA marketplace are likely to continue their exuberant pace. Financial Planning talks with some of the firms that are tapping into various sources of capital and “poised to go on buying sprees this year.” But what factors could slow the momentum? Read the full story below.

TD Ameritrade: FAs Look Ahead to Faster Growth in 2018

By Murray Coleman

Source: Financial Advisor IQ

As 2018 unfolds, three-quarters of U.S. independent advisors say they expect their firms’ revenues to rise in a new year. Perhaps just as telling, most are projecting even faster asset growth than a year ago. At least those are some of the major takeaways from the 2018 RIA Sentiment Survey by TD Ameritrade published Tuesday. The broker-dealer hired an outside marketer to conduct interviews with 300 RIAs, both clients and non-clients, late last year.


Behind the M&A buying spree

By Charles Paikert

Source: Financial Planning

The red-hot M&A market for RIAs shows no sign of slowing down. Yet. Deals are being transacted at a record pace, capital is pouring in and strategic buyers, led by well-financed RIAs, are frantically plotting to consummate more acquisitions in 2018. There are approximately 10 to 20 qualified buyers for every seller, according to industry estimates. Through the third quarter of 2017, the most recent data available, deal volume for the year was on track to set a record with over 150 transactions, reports research and investment banking firm Echelon Partners. The record is 138 transactions in 2016.



Breakaways/Aspiring Advisors

The number of advisors holding CFP designations surpassed 80,000 in 2017, according to Financial Planning. In addition, the number of women CFPs grew by 1,250 last year, although the overall percentage of women CFPs remained basically unchanged at 23%, the publication noted. Read the full story below. Also, New Planner Recruiting’s Caleb Brown sets forth a list of suggested resolutions for firms committed to building strong relationships with their new young advisors in the new year. For example, “I will inform my new advisors of business plans, as they might have some interesting input …” he writes. See the complete list below in his column at ThinkAdvisor.

Are more CFPs women? Depends on how you look at it

By Kenneth Corbin

Source: Financial Planning

The number of advisors with CFP certifications surged past 80,000 in 2017, including a record number of women. Yet this landmark failed to budge the overall percentage of women CFPs and illustrated the broader challenges of diversifying the field. A high-water mark of 1,250 women became CFPs last year, bringing the total number to 18,578, which the board hails as evidence of progress in its ongoing efforts to promote diversity. Still, women’s representation among CFPs held steady at 23%, unchanged since at least 2014.



12 Ways to Build Strong Relationships with New Financial Advisors

By Caleb Brown, New Planner Recruiting

Source: ThinkAdvisor

Congratulations on a great 2017! To work affectively with new financial advisors and planners this year, it is beneficial to keep the following resolutions in mind. They should help you and your advisory group set the stage for another great year.



Retirement Planning

How can you be smart about your RMD strategy? Morningstar’s Christine Benz talks with ThinkAdvisor about RMD mistakes to avoid, helpful strategies, areas of retirement confusion, working in retirement, long-term care insurance, and more. “I always advise retirees to think about being flexible about where they go for cash-flow needs and not get hung up on what their portfolio yields,” she tells the publication. Read the full Q&A below. Also, advisors can help clients understand how their Social Security benefits may (or may not) be affected by earnings limits when they first retire. A special first-year-in-retirement rule states that beneficiaries can get a full Social Security check for any whole month they are retired, regardless of their yearly earnings, writes Mary Beth Franklin in a column at InvestmentNews. However, clients who continue working could see a reduction or temporary halt to benefits. See a link to her column below.

How to Use RMDs to a Client’s Advantage: Morningstar’s Benz

By Jane Wollman Rusoff

Source: ThinkAdvisor

Fill two needs with one deed by applying some art to taking required minimum distributions from retirement accounts. Indeed, these annual withdrawals can be great opportunities to invigorate retirees’ portfolios, as Christine Benz, Morningstar’s director of personal finance, describes in an interview with ThinkAdvisor.The Morningstar.com senior columnist, formerly director of mutual fund analysis for the research and investment management firm, recently outlined this smart RMD strategy and several others to help clients achieve a comfortable retirement — financially and psychologically.



Social Security rules for new retirees

By Mary Beth Franklin

source: InvestmentNews

I’ve received several questions from financial advisers recently asking what will happen to their clients who claim Social Security this year after they have already earned more than the annual earnings limit. Will their benefits be reduced or even eliminated? No, their Social Security benefits will not be affected if they stop working once they claim benefits, no matter how much they earned this year prior to retirement. But if your clients continue to earn income —whether full-time, part-time or on a consulting basis — after they retire, their benefits could be reduced or temporarily wiped out depending on their age.