Time To Reboot

By Carl Richards
Source: Morningstar Advisor


I can still remember the phone calls. During 2008, when the markets were all over the place, it was a rare day that I didn’t get at least one panicked call from a client. Their questions shared a common theme: What should I be doing?


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In A T3 Teeming With Deals, eMoney’s Edmond Walters Owned Dallas

By Guest Columnist Timothy D. Welsh
Source: RIABiz


If selling your firm to Fidelity Investments for $250 million-plus is the road to complacency, Edmond Walters was showing none of it. The founder and chief executive of eMoney Advisor LLC, who took the stage second at the 10th annual T3 conference in Dallas at the Hilton Anatole hotel Friday, sounded more like the fighting ex-advisor and entrepreneur that he is known to be — albeit one with the wind of a financial superpower at his back in the wake of last week’s deal.


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Best Practices For Advisory Firm Partnerships – It’s Not About Avoiding Conflicts But How You Manage Them

Posted by Michael Kitces
Source: Nerd’s Eye View


In recent years, there has been a growing interest in both high-profile acquisitions of advisory firms, and a more general “urge to merge” as the increasing costs of running an advisory firm drive more to seek scale by banding together. Yet while the industry discussion often goes to the favorable results of the biggest mergers with the greatest success, the reality across most industries is that anywhere from 70% to 90% of mergers and acquisitions, and there’s little reason to imagine that advisory firms would be any different… suggesting that at least some of the vaunted benefits of large ensemble practices may be distorted by a significant survivorship bias.


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You Need To Fail

By John Kador
Source: Wealth Management (Rep. magazine)


“Failure is not an option!” That iconic line from the film Apollo 13 comes when three astronauts face certain death and the NASA mission director inspires all the engineers on the support team to pull out all the stops to rescue them. The line is total Hollywood fantasy. No engineer believes such a thing. In experimental aeronautics, failure is always a possibility. That’s why they have test pilots. Engineers expect components to fail. Under the right conditions, they want systems to fail. The entire goal is to push components and systems to failure so they can be made more resilient.


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See related story: 9 Advisors Admit Their Biggest Mistakes



Adviser Technology Is Now All About The Client

By Mason Braswell
Source: InvestmentNews


Financial advisers are addressing how best to invest in technology from a fresh perspective, according to the 2015 InvestmentNews Adviser Technology Study. A myopic concentration on costs and on the immediate impact on profits is giving way to client concerns and overall productivity.


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Fidelity Acquires eMoney Advisor PFM Dashboard, Gets Financial Planning Software Thrown In?

Posted by Michael Kitces
Source: Nerd’s Eye View


The news this morning is that Fidelity Investments has agreed to acquire financial planning software company eMoney Advisor for an undisclosed sum. The eMoney software is still expected to be available to advisors outside Fidelity – and the company says external integrations and custodial relationships will remain – though it’s not hard to imagine that the tools will likely become available at a discounted rate to advisors who custody with Fidelity in the future.


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Estate Tax Tips For Wealthy Clients

By Ingrid Case
Source: Financial Planning


Only a tiny number of estates owed any estate tax at all in 2012, due to an individual exemption of $5 million — up from $675,000 just 12 years earlier. But that doesn’t mean the IRS ignored the returns. Taxpayers filed 9,404 returns in 2012 for estates worth less than $5 million, that year’s individual exemption. The IRS audited 1,362 of those returns — a 14.5% audit rate — and recommended collecting an average additional tax of $85,718 per return.


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Why Do So Many Owners Resist Revenue Bonuses For Employees?

By Angie Herbers
Source: ThinkAdvisor


“How in the hell could a man enjoy being awakened at 6:30 a.m. by an alarm clock, leap out of bed, dress, force-feed, brush teeth and hair, and fight traffic to get to a place where essentially you made lots of money for somebody else and were asked to be grateful for the opportunity to do so?”—Charles Bukowski, “Factotum”


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The Value Of Advisor Study Groups – Not Just Studying Financial Planning, But Mastermind Your Business And Career

By Michael Kitces
Source: Nerd’s Eye View blog


For most, the idea of a “study group” conjures up high school or college students sitting around a table, preparing for an upcoming exam or perhaps working through a difficult assignment together. Yet the reality is that study groups are not necessarily unique or specific to students in school, and in fact are relevant in many professional services industries.


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Advisers + Technology: Better Than Either Alone?

Source: Journal of Financial Planning


If you think you’ve read enough about robo-advisers, this roundtable will change your mind. The experts gathered here offer thought leadership on the newest wrinkle in the robo-trend conversation: the powerful notion that technology-augmented human advisers are better than humans, or technology, alone.


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