News That Matters

Tag: advisors

How financial advisors can strive for a higher standard when recommending life insurance

How financial advisors can strive for a higher standard when recommending life insurance

Finance
Thomas Barwick | DigitalVision | Getty ImagesThe process of recommending life insurance doesn't have to be rife with conflicts of interest.Insurance has its place in a client's comprehensive financial plan. For instance, term coverage can protect a young family in the event of a breadwinner's early demise.Permanent life insurance — which can be complicated because of its underlying cash value — may also play a role if a client has a complex need, including estate planning or key-man coverage.While advisors recognize situations that may merit life insurance, some — particularly fee-only registered investment advisors or RIAs — have been put off by the conflicts that arise from recommending commission-based products."Under no circumstances do we sell anything like that, but there are occasio
Here’s what advisors can anticipate amid the $26 billion Charles Schwab-TD Ameritrade tie-up

Here’s what advisors can anticipate amid the $26 billion Charles Schwab-TD Ameritrade tie-up

Finance
A pedestrian passes in front of a Charles Schwab Corp. office building in New York.Gabriella Angotti-Jones | Bloomberg | Getty ImagesCharles Schwab's proposed acquisition of TD Ameritrade is stirring up worry among financial advisors.Schwab on Monday announced it would buy TD in a $ 26 billion all-stock transaction. Together, the firms will serve 24 million brokerage accounts, accounting for more than $ 5 trillion in client assets.Both firms also have massive footprints in the registered investment advisory industry, where they custody investors' assets and execute trades.They also provide firms with the technology to simplify their workflow and allow advisors to focus on financial planning."Together we can deliver the ultimate client experience for retail investors and independent registe...
Choosing Medicare is a high-stakes decision. How advisors can make sure clients get it right

Choosing Medicare is a high-stakes decision. How advisors can make sure clients get it right

Finance
A senior citizen holds a sign during a rally to protect federal health programs at the 8th Annual Healthy Living Festival on July 15, 2011 in Oakland, California.Justin Sullivan | Getty ImagesFor most people, signing up for Medicare is a retirement rite of passage.But as they turn 65 and sort through their Medicare Part A, B, C and D choices, many individuals can also be vulnerable to costly mistakes.Even done the right way, it's a high-stakes choice. Medicare beneficiaries will need as much as $ 400,000 for health expenses per couple, according to 2018 research from the Employee Benefit Research Institute. That is up from $ 370,000 in 2017."People do feel overwhelmed and baffled by Medicare," said Katy Votava, president of Goodcare.com. "But there are some basic things that an advisor can...
Brokerage bombshell: What advisors, investors could expect from a Schwab-TD Ameritrade merger

Brokerage bombshell: What advisors, investors could expect from a Schwab-TD Ameritrade merger

Finance
Pedestrians pass in front of a Charles Schwab bank branch in downtown Chicago, Illinois.Christopher Dilts | Bloomberg | Getty ImagesFinancial advisors who hold their clients' assets at TD Ameritrade are about to face a shake-up.Charles Schwab is in talks to purchase TD Ameritrade for $ 25 billion, and a deal could be announced as early as Thursday, a source told CNBC.The merger would combine approximately $ 3.8 trillion in assets from Schwab and $ 1.3 trillion from TD Ameritrade and create a massive custodian in an industry that already provides less choice for registered investment advisors or RIAs.Not only do these firms hold assets for registered investment advisors and execute trades, they also provide firms with technology to simplify their workflow and allow advisors to focus on fina...
The worst money mistakes these top advisors have seen investors make

The worst money mistakes these top advisors have seen investors make

Finance
Witthaya Prasongsin | Moment | Getty ImagesIrish author James Joyce wrote in his novel "Ulysses" that a genius makes no mistakes. "His errors are volitional and are the portals of discovery," he wrote. Talk about hindsight being 20/20. Joyce's spin aside, mistakes can indeed be learning experiences — and we all make them, especially when it comes to finances.Financial advisors make a living trying to help clients steer clear of error when it come to managing money but mistakes do happen. Sometimes it's a matter of sage advice not taken, other times entrenched bad habits or beliefs that just won't yield to common sense. We asked advisors from firms that made the FA 100 list what the worst money misstep they've ever seen a client or other investor make was. Their replies follow.California Fi