Home > Practice Management > News Roundup: Tax planning in demand, broker protocol raises questions, and succeeding in the retirement plan niche

News Roundup: Tax planning in demand, broker protocol raises questions, and succeeding in the retirement plan niche

Practice Management

Advisors are increasingly finding that incorporating tax planning in their practices is a necessary way to attract and retain wealthy and ultra-wealthy clients, according to Financial Planning. “Tax planning has become less of a differentiator and more of a required offering for those serving clients with complex financial lives,” Mark Tibergien, CEO of Pershing Advisor Solutions, told the publication. Recent tax law changes have prompted a flood of inquiries from clients regarding tax-planning strategies. See the full story below. Also, what will Amazon’s entrance into the financial services business mean for advisors? Financial Advisor talked with Advicent COO Tony Stich, who predicts that Amazon will offer several levels of investment accounts to millennials and others, including DIY and robo accounts. If Amazon decides to use a retainer fee for advisory accounts, “they’ll drive down fees, maybe even to the point where it’s difficult to compete,” Stich told the publication. See the full story below.

New tax law, more business for financial advisors

By Charles Paikert

Source: Financial Planning

As buzz about the Republican tax bill ratcheted up in December, so did the calls to Jana Shoulders’ office at Mariner Wealth Advisors in Tulsa, Oklahoma. “We started getting a lot of inquiries before the bill became law,” says Shoulders, who was a CPA for 18 years before starting a financial advisory firm in 1995. “Clients wanted to know what they needed to do before the end of the year.” Soon after President Trump signed the bill, her team swung into action.


Will Amazon Pitch Financial Advice To Millennials?

By Tracey Longo

Source: Financial Advisor

“Alexa, find me a financial advisor.” If Amazon is successful in creating a banking relationship with its vast customer base of millennials, can an investment advice platform be far behind? As news broke that the retail powerhouse is seeking to partner with Capital One or JPMorgan to offer a hybrid checking account to millennials, the notion that the retailer is on track to begin to convert its oceans of shoppers into financial account holders began to sink in.



Breakaways/Aspiring Advisors

Apprehension over whether more firms will decide to exit the Protocol for Broker Recruiting has put advisors in an uneasy position. “Advisers are genuinely fearful when there is volatility and change,” Brian Hamburger, CEO of MarketCounsel, told InvestmentNews. The publication notes that departures from the protocol raise a number of questions, such as: “Will legal battles over clients resume?” See the full story below. Also, Gen Y financial planner Matthew Boersen explains in a column at Financial Planning how he was able to use his youth as an advantage with clients rather than a detriment. For example, he asked clients how long they wanted to work with a financial planner, and the answer was typically “for life.” He would then point out to these clients that “they needed to focus on an advisor who was still going to be around 30 years later.” Read his other tips for young advisors below.

Broker protocol: Indecision over recruiting agreement is rampant

By Bruce Kelly

Source: InvestmentNews

When Morgan Stanley exited an industry agreement late last year that makes it easier for brokers and advisers to move to new firms, it upended 14 years of peace among the largest brokerages. Thousands of retail brokers and wealth management advisers across Wall Street are left wondering whether they will one day fight with their employers over the right to do business with their clients if they jump from one broker-dealer to another.


The struggle to attract clients when you’re in your 20s

By Matthew Boersen

Source: Financial Planning

Starting out as a young financial planner isn’t easy. After all, you have no track record, no referral base and no real-world experience, yet. The sell-to-your-friends approach often doesn’t work, either. When I started out, I was 21 and determined to use a fee-based approach. My friends were unlikely to have the money to generate substantial AUM fees. So, I tried targeting baby boomers and older clients. But this came with its own challenges. Many prospects had children, and sometimes even grandchildren, who were older than me. Not surprisingly, they rarely saw my age as a positive when deciding who to trust with their life savings.



Retirement Planning

Building a business as a retirement plan advisor might seem like an easy undertaking, but it takes a keen understanding of complex ERISA rules and regulations and a willingness to accept thinner profit margins, according to an article at WealthManagement.com. But for those willing to commit themselves to the niche, “there’s a massive amount of resources to become an expert,” Brian Lampsa, an advisor with True North Retirement, told the publication. The National Association of Plan Advisors is a good start. Read the full story below. Also, BlackRock’s 2018 DC Pulse Survey finds that 54% of defined contribution plan sponsors think their plan’s participants need to delay retirement, Financial Advisor reports. In last year’s survey, only 34 percent of plan sponsors felt that way.  However, more than 90 percent of the participants surveyed reported being overwhelmingly satisfied with their retirement plans, the publication notes. Read the details below.

Retirement Plans: A Neglected Niche?

By James J. Green

Source: WealthManagement.com

For financial advisors looking to build a book of business, workplace retirement plans are a natural temptation. A single institutional client can yield a sizable book of assets, there are opportunities galore in small- and medium-size businesses, and the tools and resources available from custodians, broker/dealers and other vendors to help advisors tap the market are plentiful. For an advisor slowly building a practice via one retail account at a time, the notion of workplace retirement plans seems disarmingly easy.


DC Plan Sponsors Worry While 401(k) Participants Breathe Easy

By Christopher Robbins

Source: Financial Advisor

While a balance in their 401(k)s makes retirement savers feel more assured, defined contribution plan sponsors are expressing less confidence in their participants’ ability to fund retirement, according to BlackRock’s 2018 DC Pulse Survey. In this year’s survey, more than half of defined contribution plan sponsors, 54 percent, felt like the majority of their plans’ participants needed to delay retirement.