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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
Importance of a Financial Planner

Importance of a Financial Planner

Finance
Here’s why you need a Financial PlannerFinancial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals. The first step in developing your financial plan is to meet with an advisor. If you work with a financial planner/advisor, you’ll be nudged to answer questions about your income, spending and goals. You may do it on your own if you are able to find the options and analyse them well, but this needs a proper understanding, expertise and time. Hence, it is always a better choice to appoint a financial advisor. The investment advisor must be certified and registered with SEBI as per recent guidelines. So it is important to take the services of an authentic advisor only. The illustration above shows few powerful reasons why fina
Private equity investors are zeroing in on the financial advice business

Private equity investors are zeroing in on the financial advice business

Finance
Hero Images | Hero Images | Getty ImagesThe registered investment advisor industry may be the perfect playground for private equity investors. It has good growth, high profit margins, consistent cash flow and low capital needs. With roughly 13,000 firms in the industry, it is also highly fragmented, ripe for roll-up, and begging for consolidation."The industry has a lot of the traditional ingredients that private equity investors like," said Brad Armstrong, a partner at Lovell Minnick Partners in Philadelphia. Lovell Minnick Partners is one of the more active private equity investors in the wealth management industry.The firm sold its stake in Mercer Advisors in September and last week announced its latest investment in Pathstone, an RIA focused on ultra-high-net-worth clients, managing $ ...
Here’s the best financial advice the country’s top advisors ever got

Here’s the best financial advice the country’s top advisors ever got

Finance
Thomas Barwick | Getty ImagesFinancial advisors and wealth managers counsel others on money matters. Doling out financial advice is their bread and butter. And like doctors who turn to other physicians when they've got their own aches and ailments, financial advisors often rely on others' opinions when planning their own finances. And, in some cases, it's a sanguine or salient money tip early on that leads advisors into a career in the industry in the first place.We asked advisors from financial advisory firms that made the FA 100 list for 2019 for the best money and investing advice they ever got. Their replies follow.California Financial Advisors, San Ramon, California• Michelle Perry Higgins, principal: "Push yourself to save in your 401(k) until it's uncomfortable. This advice was not
Financial advisors need a succession plan to benefit clients and their own firm

Financial advisors need a succession plan to benefit clients and their own firm

Finance
kupicoo | E+ | Getty ImagesThe aging army of independent registered investment advisors who have spearheaded the growth of the financial planning profession need to follow their own advice when it comes to their businesses — for their clients' sake, as well as their own.With the average age of financial advisors somewhere in their mid-50s and a big bulge of advisors now in their 60s and 70s, the fate of thousands of practices and millions of clients in the next decade remains in doubt. Studies show that most small advisors — particularly solo practitioners — have no successor to fill their shoes, nor very good prospects for selling their business to someone else.The reality is, they probably never will."The No. 1 way that independent advisors exit the industry is through attrition," said