Home > Aspiring RIAs > News Roundup: How to approach goals, reasons behind the breakaway trend, and the benefits of working longer

News Roundup: How to approach goals, reasons behind the breakaway trend, and the benefits of working longer

Practice Management

Are you still struggling with setting goals for the year? Josh Patrick, founder of Stage 2 Planning Partners, might have a solution for you because he hates goals. Why? “Goals are limiting, and instead of enjoying the trip, you just focus on the end result,” he writes in a guest post at AbsoluteEngagement.com. Instead, he suggests a process called goal mapping. See the details below. Also, Vanguard CEO Tim Buckley’s recent message to advisors is to not treat technology as a threat, adapt to fee compression, and spend time on “uniquely human tasks,” according to WealthManagement.com, reporting on his address at the Inside ETFs conference. “The behavioral coaching depends on you,” Buckley said. See the article link below.

Are Goals Limiting Your Growth?

By Julie Littlechild with Josh Patrick

Source: AbsoluteEngagement.com

Josh Patrick is the founder of Stage 2 Planning Partners as well as The Sustainable Business. His first book, Sustainable: A Fable About Creating a Personally and Economically Sustainable Business will be available at Amazon.com on February 6th. Josh is, well, rather clear in his stance. He hates goals and thinks you should too. Take it away Josh….


Vanguard’s New CEO Says Advisors’ Jobs Are in Jeopardy

By Dan Weil

Source: WealthManagement.com

The new CEO of Vanguard continued his predecessor’s warning for advisors: Adapt to the technological changes and fee compression roiling the investment management industry, or get left behind. Like everyone, financial advisors embrace technology, except when it comes to their own businesses, said Mortimer “Tim” Buckley, the 46-year-old CEO of the low-cost money-management titan as he kicked off the Inside ETFs conference in Hollywood, Florida. The conference brought some 2,400 asset managers and advisors together to chart the landscape for exchange traded funds. When it comes to their own industry, he said, advisors still too often see technology as a threat.



Breakaways/Aspiring Advisors

The breakaway advisor movement has attracted not only lower-level producers, but big producers, too. ThinkAdvisor identifies where advisors are going and explores some key reasons behind the migration. For example, “The smaller firms have benefited from the bigger firms concentrating on the bigger producers,” recruiter Danny Sarch tells the publication. See the full story below. Also, Merrill Lynch, which has pulled back on recruiting experienced advisors and focused on younger-advisor training, boosted its headcount by 2% last year, reports InvestmentNews. Merrill added 333 people, resulting in a total of 14,953 at the end of last year, the publication reports. See the details below.

Why Are So Many Advisors Leaving Wirehouses?

By Jane Wollman Rusoff

Source: ThinkAdvisor

In a trend signaling further shrinkage of the wirehouse financial advisor population, FAs are leaving the big firms for greener pastures at beckoning regionals and small national firms. Higher payout isn’t the only allure: The mainly lower-level producers are seeking venues where they will be more valued and respected. But big producers are part of the migration, too. It is a trend that has deep implications for the future of both wirehouses and advisors, as ThinkAdvisor’s interviews with recruiting and compensation experts reveal.


Relying on trainees, Merrill Lynch boosts adviser headcount in 2017

By Bruce Kelly

Source: InvestmentNews

Despite cutting back on recruiting experienced financial advisers, Merrill Lynch increased its adviser headcount by 2% in 2017, adding 333 people for a total of 14,953 at the end of last year, according to Merrill’s parent company, Bank of America, which released its fourth quarter earnings recently. Last May, Merrill Lynch, along with rival Morgan Stanley, said it was reducing its reliance on recruiting experienced advisers and putting renewed focus on training younger advisers and building staff.


Retirement Planning

Advising people to work longer – into their retirement years – could become a more common recommendation. A new working paper on “The Power of Working Longer” from the National Bureau of Economic Research finds that “delaying retirement by 3-6 months has the same impact on the retirement standard of living as saving an additional one-percentage point of labor earnings for 30 years,” according to a column at Bloomberg. See the details below. Also, Americans are increasingly putting their retirement savings in jeopardy to help fund their children’s education. The Consumer Financial Protection Bureau has found that the number of U.S. residents 60 or over with student loan debt has climbed from 700,000 in 2005 to 2.8 million in 2015, Financial Advisor states. One advisor tells the publication that parents, grandparents and children should budget together for college. See the full story below.

The Remarkable Financial Benefits of Delaying Retirement

By Justin Fox

Source: Bloomberg

You’re 49 years old, you make $113,000 a year and you’re starting to get worried about financing your retirement. You could take the drastic step of upping your retirement savings by 10 percent of your salary. Or you could achieve the same result by retiring two years and five months later than you had been planning to. This is one of a number of such comparisons in a remarkable new National Bureau of Economic Research working paper, “The Power of Working Longer,” that I imagine is going to become a staple of retirement advice in the coming years.


When Student Debt Erodes Retirement Savings

By Asia Martin

Source: Financial Advisor

The number of Americans torn between funding their retirement and their children’s college debt is on the rise. The number of U.S. residents aged 60 or more with student loan debt has risen from 700,000 in 2005 to 2.8 million in 2015, and majority of the beneficiaries of those loans were their adult children and grandchildren, according to the Consumer Financial Protection Bureau (CFPB). Advisors say parents and grandparents are often contending with this student debt on a fixed income, impacting their retirement goals.