Market madness is good news for some financial advisors
There was nothing "lost" in the first decade of the 21st century as far as the independent financial advisory industry is concerned. While the markets certainly did not contribute much, the typical independent wealth management firm had an amazing time of growth and opportunity. It could be said that advisors grew despite the headwind from the market, but it may be that the industry grew because the markets were so difficult for investors to navigate on their own. More
Gross praises S&P's 'spine' as Buffett says analysts erred
Bill Gross, manager of the world's biggest bond mutual fund, said Standard & Poor's showed "spine" by cutting the U.S. debt rating, contradicting Warren Buffett and Legg Mason Inc.'s Bill Miller, who said the rating company erred. S&P on Aug. 5 lowered the U.S. one level to AA+ while keeping the outlook at "negative" as it becomes less confident Congress will end Bush-era tax cuts or tackle entitlements. The U.S. merits a "quadruple A" rating, Buffett, 80, said in an interview with Betty Liu of Bloomberg Television. Miller said S&P was "precipitous, wrong and dangerous" in lowering the rating after the recent stock market selloff. More
State looks to regain spot as captive insurers' home
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Legislative changes may jump-start Nevada's efforts to be among the nation's leading homes for corporations' captive insurance operations. Captive insurance companies are created by companies to insure their own risks, and are most commonly used to cover liability or property risks. The parent company pays premiums to the captive and, in return, takes dividend payments if the captive manages its risks wisely and remains profitable. More
Shifting client money
The likelihood of a recession, how one advisor shifted clients' assets to safer havens and how others see means testing being applied to Social Security are discussed in this edition of the Wealth Editor's Report by Kevin Noblet, Dow Jones managing editor for wealth management. More
Advisors say time is right for high-yield stocks
Prompted by a host of financial and economic developments, a growing number of investment advisors are steering their clients toward dividend-paying stocks. "The stocks and assets that have done the best are likely to perform less than the large cap dividend-payers over the next few years," Kate Warne, market strategist for St. Louis brokerage Edward Jones, told Reuters. "We think it's time for individual investors to reposition into less risky stocks." More
SEC launches new whistleblower program
The SEC unveiled a new website — one that explains how people can potentially make millions of dollars by turning in corporate wrongdoing. It's part of the new Office of the Whistleblower, a unit designed by the Dodd-Frank Wall Street reform law. People who bring in reliable new information about frauds of $1 million or more will be eligible for payouts of between 10 and 30 percent of the amount recovered. More
What if the mandate goes?
If the Supreme Court strikes down the individual mandate at the heart of President Barack Obama's health care law, Congress may have to "fix" the rest of the law to prevent a disaster. But what if Congress isn't in the mood to "fix" anything? With all the bickering over whether the law should even exist, why wouldn't lawmakers just keep fighting as many of them try to undo the whole thing? That's a real scenario that the Obama administration could face, after a divided 11th Circuit Court of Appeals recently ruled that the federal government could not require Americans to buy health insurance. More
Life insurance: An opportunity for financial advisors
Financial Planning Share
In volatile times, like the ones we have seen recently, investors tend to look for stability. Yet only 49 percent of those with a financial advisor and a financial plan have discussed life insurance with their advisor, according to a recent survey, an interesting finding given that life insurance is not subject to market or interest rate volatility for the death benefit withdrawal and so is considered a safer place to park assets. More
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