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Focuses on the reduction in the use of paper in the financial services industry. Costs of sending out 500 commission statements; Electronic solution to address paper costs; Information on the customers of Amicus Networks Incorporated. INSET: Obstacles to paper reduction.

Tax-loss harvesting, a strategy that uses net losses to reduce capital gains taxes, is becoming more prevalent through applications like direct indexing. However, there is a lack of research on this strategy, according to a working academic paper by Harry Mamaysky. While tax-loss harvesting can be beneficial for wealthy investors, it is not suitable for everyone and requires careful consideration of offsetting capital gains. Investors are advised to consult with financial advisors and tax professionals to understand how this strategy applies to their specific cases. The paper also discusses the importance of factors such as intermediate capital gains, reinvestment of tax savings, and differential tax rates in maximizing the benefits of tax-loss harvesting. [Extracted from the article]

UBS, a Swiss wirehouse, is targeting high-end art collectors in the US by offering guidance on investing in fine art. The bank published a 90-page paper titled "Your Collection, Your Legacy: Building a Lasting Art Collection" as a guide for wealthy clients to engage with the art world. UBS aims to position itself as an independent advisor in the art market, distinguishing itself from other wealth management firms. The paper also provides advice on creating foundations, loans, and estate plans for artworks. [Extracted from the article]

The article discusses the author's views on the attitudes of investment advisors on offshore investing due to risk of foreign tax shelters.

Explores the low-risk benefit of the money market funds to clients' cash during periods of stock market volatility. Advantage of money market funds over bond funds; Maturities of money market funds; Expense ratio of the average money fund; Reasons behind the high-yields of some money funds; List of the taxable money funds.

Industry News Advisors at RIAs with private equity stakeholders are more likely to engage in misconduct with clients, according to a new study. The Oregon paper cited internal research by DeVoe & Co., a consulting and valuation firm for wealth managers, as showing that, while private equity funds participated in only 5% of all RIA deals over 2013 to 2019, they accounted for 26% of all deals as measured by client assets. [Extracted from the article]

For many investors, Franklin Templeton says, three giant ETFs that track the S&P 500 - SPDR S&P 500 ETF Trust, iShares Core S&P 500 and Vanguard S&P 500 ETF - "represent a core holding in their overall portfolio." By contrast, when an investor wants to sell an ETF, she simply sells it to another investor like a stock. Tax and Retirement Exchange-traded funds are a popular, low-cost gateway to the market - a way to gain broad exposure and diversify your bets to cushion the drag of losers. [Extracted from the article]

The article discusses the concerns arising from the authority granted to the Certified Financial Planner (CFP) Board of Standards to access private financial information of U.S. citizens in 2011. In March, the CFP requested the Securities and Exchange Commission (SEC) to permit registered investment advisors (RIAs) and broker-dealers to share customer information without resulting to the violation of Regulation S-P. Financial advisors question the motives of CFP and they are concerned about the privacy rights of their clients.

In a 2022 "Planning Insights" paper, the Wall Street bank said that when it comes to buying a home, "the deduction for investment interest may do more than the mortgage interest deduction to minimize taxes." That investment interest expense deduction can be more generous than the one for mortgage interest. Our investor has now functionally swapped an interest deduction capped at $750,000 of a much larger mortgage to a deduction on the full interest on a $4 million loan. [Extracted from the article]

The article focuses on the use of a document management system (DMS) by financial planners. According to the results of the "Financial Planning" December 2007 software survey, about 62% of the respondents are making some effort to go paperless. Firms can demonstrate the authenticity of their digital documents by using the DMS feature known as digital tamper-proofing. It is noted that digital documents enable greater security and affords greater control and flexibility than paper files.

The article comments on the white paper "Retirement Portfolio and Variable Annuity (VA) With Guaranteed Minimum Withdrawal Benefit" (VA+GMWB) by Ibbotson Associates published in October 2007. It is stated that there are several things that are not clear in the paper including the account not being annuitized. In the study, a 0.4% mortality and expense fee and a 0.6% GMWB rider fee are assumed. The author shares his findings when comparing the VA with a mutual fund portfolio.

Provides information on the exemption letter issued by the United States Securities and Exchange Commission (SEC) on wrap-free program for financial statements of broker-dealers. Benefits of the program to brokers.

Offers tips on how financial advisers can help their clients to organize their important documents. Information on classifying the clients' documents; Contents that should be included in an emergency file; Factors to consider when disposing personal and financial documents.

Presents information on a report on a theory on financial behavior. Purpose of the report; Importance of efficient markets to behavioral finance; Types of behavioral biases displayed by investors.

Presents the results of a nationwide survey on the travel habits, fears and related insurance needs of affluent individuals in the U.S. Findings that affluent individuals travel more frequently and are more prone to worry about health problems that could occur on those trips than less wealthy travelers; Tendency of affluent individuals to engage in risky activities during vacations and to cancel a trip due to a state department travel warning; Details of the survey.

Industry News Clients who want to put their money into so-called ESG investments might have plenty of things on their mind other than making a profit - fighting climate change, say, or promoting fair labor practices abroad. But among actual ESG investors, the study found that respondents who cited ethical considerations as their primary concern were more likely than others to make an ESG investment even if they thought the payoff would be lower than average. [Extracted from the article]

Practice Management Financial advisors seeking to preserve the newfound wealth of athlete or entertainer clients face the tough question of how they should support the friends and family who helped their clients make it big. For example, take an illustrative case study from the UBS white paper about an NFL player who earns $10 million over a four-year contract while living in California and playing in a city or state that charges a "jock tax." Giving back to communities and sustaining friends and family are "all very admirable goals, but you still want to carve out assets", said advisor Lee Rawiszer of Westport, Connecticut-based Paradigm Financial Partners, which works with a lot of athlete and entertainer clients. [Extracted from the article]

Provides information on a preliminary report made by Merrill Lynch that assesses the long-term outlook for bonds in the market environment as of June 2005. Factors that could affect yields for long-duration bonds; Speculations of Merrill Lynch on the factors that may raise bond prices.

The article focuses on Mark Hurley's white paper "Creating, Measuring and Unlocking Enterprise Value in a Wealth Manager." Focused mainly on the creation and sale of enterprise value, the white paper's assertion was that fewer advisory firms in the U.S. have or possess the potential to build material enterprise value. According to Hurley, firms that follow a fee-based model have no enterprise value to sell since they are probably transferring substantial profits and enterprise value to their broker-dealers.

The article discusses the evolution of technology in meeting the demands of the financial planning industry. Developments include intelligent solutions for asset management, outsourcing of portfolio accounting, and client relationship management (CRM) software created especially for financial advisors. The conversion from paper to digital format is also discussed as essential in the management of information.

Reports on the disagreement of the Financial Planning Association (FPA) with the white paper issued by the U.S. House Committee on Education and the Workforce about pension reform proposals. Details of the U.S. Senate proposal; Issues raised by the FPA; Statement issued by the committee.

Discusses the possible outcomes of the white paper entitled 'Regulation of Financial Planners,' released by the Financial Planning Association in 2002. Information on the consumer protection-litigation model; Concerns of financial planners regarding the paper; Details on the licensing scheme of the paper.

A letter to the editor is presented in response to the article "Cheerleaders in Lab Coats," by Bob Veres in the May 2008 issue.

As John Furey, the founder and managing partner of Advisor Growth Strategies, a wealth management consulting firm in Phoenix, told a Dec. 16 webinar hosted by the firm, "There's still no national brand." The independent firms are overseen by the SEC, which reported nearly 13,900 firms in 2020 with nearly 61 million clients and $110 trillion in assets, according to the Investment Advisor Association. "The bigger a PE firm's portfolio company gets, the harder it is to achieve an outsized IRR", Seivert said. Shannon Eusey first sketched out her idea for a financial planning firm when she was studying for an MBA and working at a small wealth management firm in Los Angeles. [Extracted from the article]

The article examines the advantages of purchasing whole life insurance over term policy purchase. Topics include the reference to a study by American College retirement income professor Wade Pfau published in the "Forbes " magazine on the superiority of buying whole life insurance, efficient legacy outcomes on retirement income merger as discussed in Pfau's paper "Optimizing Retirement Income by Combining Actuarial Science and Investments" as well as the Single Premium Immediate Annuity (SPIA).

"As American workers are very mobile and are moving around from employer to employer, they're leaving behind balances in 401(k) plans", said Dave Stinnett, the head of strategic retirement consulting at the financial services firm Vanguard. Second, he gives the client a preview of the questions the provider will probably ask - including basic ones like the client's personal information, but also more obscure details, like whether they've seen the plan's tax disclosure notice. After the rollover is requested, the previous plan provider typically mails a check to the client, who then needs to forward it to their new provider within 60 days. [Extracted from the article]

According to his breach of contract claim, Yost loaned Carroll and wife, Anne, $2.5 million in 2015 and $4.5 million in 2016. Carroll alleged that starting in 2009, he and Anne used the money from Yost to buy real estate, including a $2.7 million apartment in Manhattan's Gramercy Park neighborhood. The judge's decision dismissed Carroll's counterclaim against Yost, in part by saying that Carroll had contradicted himself in asserting that the loans wouldn't have to be repaid had he and Anne stayed married. [Extracted from the article]

The article deals with the white paper entitled "Financial Regulatory Reform: A New Foundation" of the administration of U.S. President Barack Obama which calls for heightened regulator supervision for huge interconnected companies called Tier 1 Financial Holding Companies. It emphasizes that the white paper like Securities and Exchange Commission (SEC) Chairperson Mary Schapiro, wants the SEC to harmonize the regulation of broker-dealers and investment advisors. The said white paper suggests the creation of a new Consumer Financial Protection Agency.

Health savings accounts (HSAs) are a tax-advantaged savings and investing account that can help working Americans plan for their medical and financial futures. HSAs offer triple tax savings, allowing individuals to contribute pre-tax income, grow funds tax-free, and make tax-free withdrawals for medical expenses. However, many Americans fail to maximize the potential benefits of HSAs due to low contribution limits and a lack of understanding. Financial advisors recommend incorporating HSAs into employee benefits, considering different HSA options, investing HSA funds, and using reimbursement strategies to maximize savings. It is important to be aware of the differences between HSAs and flexible savings accounts (FSAs) and to plan for estate considerations and Medicare eligibility. [Extracted from the article]

This article explores the current state of funding for wealthtech startups. It notes a decline in funding and dealmaking for fintech companies globally, attributed to factors such as high interest rates, low market volatility, and increased investor scrutiny. The wealthtech space is described as an "arms race," with companies vying to become the go-to platform for financial advisors. Despite the challenges, there are still deals being made, but the focus has shifted towards responsible growth and established leaders in the industry. Startups in the wealthtech industry face difficulties in securing capital due to high interest rates, leading to a trend of follow-on investments rather than new stakes. However, some founders remain optimistic and see opportunities for growth, emphasizing resilience, learning from rejections, and focusing on strong fundamentals. Startups are also advised to adapt and refine their offerings to meet the evolving needs of customers and investors. [Extracted from the article]

Presents information on The Value Line Investment Survey, a newsletter which is published in the U.S. Goal of the newsletter; Information on the discrepancy between the published newsletter returns and the mutual fund's returns; Criticisms of financial executives on the newsletter.

Talks about the credibility of a business economist's forecast. Overview of the case of technology analyst Henry Blodget; Criticisms on the forecast of business economists; Caution in following a business economist's advice.

Larry Fink's annual letter to corporate executives is widely viewed by companies, big investors and policymakers as an agenda-setting document. Morningstar's Sustainalytics calculates a company's ESG risk through its exposure to an "incident", meaning "company activity that generates undesirable social or environmental effects." It's either ironic or surreal that asset management firms focused on ESG funds now disclose the ESG backlash as a material, ESG-related risk to their profits. [Extracted from the article]

Presents tips on how financial advisers can improve their credibility marketing strategy. Purpose of identifying goals for marketing strategy and tactics; Importance of a well-designed and regularly updated Web site; Benefits of publishing research-based white papers, books and e-mail newsletters.

The article discusses the improvement by financial advisors of their service strategy through segmentation, according to a white paper that will be released by Charles Schwab Advisor Services concerning client service segmentation strategies for registered investment advisors (RIAs). It states that the commitment of advisors to customer service may be improved by segmentation. Segmentation has several benefits for advisory firms including improvement of resource allocation, systematic processes, and pricing and fee structures.

An excerpt from the white paper entitled "The Future of the Financial Advisory Business: Opportunities, Challenges and Trends in the Second Decade of the 21st Century," by Bob Veres, is presented.

The other detail people forget, O'Connor said, is that in the mid-to-late '90s, inflation was low, so any adjustments would not have broken the bank. "Assuming a minimum requirement of 30 years of portfolio longevity, a first-year withdrawal of 4%, followed by inflation-adjusted withdrawals in subsequent years, should be safe", Bengen wrote. Any retiree relying on the 4% rule is faced with two simultaneous threats: Their portfolio is rapidly losing value, and the yearly inflation adjustment could be untenably huge. [Extracted from the article]

How to avoid the dividend stock "yield trap" In that case, Zappia said that "most, if not all of, what you make on the stock could be the dividend" - AT&T and Verizon's high yields, but lousy stock performance in recent years are an example. Tax and Retirement Dividend stocks are a shiny new ornament for many financial advisors, especially those with older clients worried about maintaining income and spending power in uncertain economic times. [Extracted from the article]

Ken Lotocki, chief product officer of Canadian financial planning technology startup Conquest Planning, believes it is beneficial to provide direct access to generative AI and ChatGPT-powered tools to firms, advisors and clients. Kim said when making the case for this kind of client-facing AI, especially amid the current wave of AI enthusiasm, a certain level of caution must always come with every ChatGPT implementation. Created by AI and research company OpenAI and released to the public in November 2022, ChatGPT is an AI-powered chatbot based on the GPT (generative pretrained transformer) language model. [Extracted from the article]

Be selective with your clients When an advisor is under the pressure of meeting growth goals at their firm, being selective with clients is easier said than done. Find a firm to align with Being selective with clients is only the first step, but for some employee advisors company performance goals make such selective business nearly impossible. For Anna N'Jie-Konte, the co-founder of New York-based Re-Envision Wealth - which launched in June with the goal of becoming the first Black-owned RIA with $1 billion in client assets - this disillusionment with helping high net worth clients simply accumulate more wealth is a familiar feeling. [Extracted from the article]

Tax and Retirement The Social Security Administration pays out $1 trillion in annual benefits to tens of millions of people. Too few employees and too much work Presenters to the Ways and Means Committee hearing on Social Security's customer service issues pointed to a system that has too much work and too few resources. [Extracted from the article]

Robert Jamieson's path to the top of the music industry started with counting vinyl discs on a churning production line in a Queens, New York, warehouse. For a small fee For at least 10 years, the SEC has been cracking down on advisors who fail to tell clients they're being steered into fee-bearing mutual funds when no-cost, nearly identical alternatives are available. As part of Reg BI, the SEC banned pure brokers from holding themselves out to the public as "advisors" or "advisers", a spelling that stems from the original 1940 law regulating the industry. In 2019, 79 advisory firms paid $125 million to settle SEC allegations that they hadn't disclosed to clients the fees they'd be paying. [Extracted from the article]

Harper said the reason ChatGPT won't replace advisors is because what it excels at - providing answers - isn't really what people hire financial advisors for in the first place. Created by AI and research company OpenAI and unleashed upon the masses in November 2022, ChatGPT is an AI-powered chatbot based on the GPT (generative pretrained transformer) language model. Financial advisor Nick Rygiel, owner of the Bryn Mawr, Pennsylvania-based Ironclad Financial, said he is very familiar with ChatGPT and a fan overall for what it is: a tool. Meanwhile, Philipp Hecker, CEO at Westport, Connecticut-based fintech firm Bento Engine, sees many powerful use cases in wealth management going forward, including ChatGPT enhancing or entirely replacing Google searches by end investors, or improving firm-level knowledge management systems for financial advisors. [Extracted from the article]

The article discusses advantages associated with bond ladders, which works well with rising rates as it gives wealthy investors sequential opportunities to exchange maturing low-rate debt instruments for higher-yielding paper. Topics discussed include challenges related to laddering among clients with 500,000 U.S. dollars in assets, benefits associated with creating ladders out of target-maturity exchange-traded funds and alternatives to bond ladders like diversification in fixed-incomes.

Not to be confused with exchange-traded funds, the typically private funds are usually open only to qualified investors with at least $5 million in investments; some have a lower threshold and accept accredited investors with a net worth of at least $1 million and income of at least $200,000. Wealth managers say exchange funds can work well for investors whose nest egg is tied up in an employer's stock, entrepreneurs whose net worth is in a startup and family members who inherit a business. Tax and Retirement Many wealthy investors whose retirement nest eggs swelled during the pandemic now own dense blocks of valuable stock in a single company - along with a twin problem. [Extracted from the article]

Here are some tips and practices that industry representatives and experts have adopted to make remote work work for them: Reach out, touch someone Nicole DellaPasqua, a certified financial planner at Crestwood Advisors in Boston, said there's little doubt that remote work has made it easier to schedule meetings. Scoop, a company that helps business clients with remote work arrangements, reported in May that only 20% of financial services firms require their employees to be in the office every work day. [Extracted from the article]

Editorial. Focuses on a white paper released by the Financial Planning Association (FPA) in 2002 which deals with regulating financial p;anners. Feedback from the planners; Difference of the proposed regulations from other financial planning rules; Information on the proposed merger of FPA and the CFP Board of Standards.

The article discusses the use of e-signatures in financial products. The National Association of Variable Annuities, now the Insured Retirement Institute (IRI), developed a straight-through processing (STP) standard initiative which involves standards for fully electronic processes for fulfilling sales transactions. The use of e-signature technology provides accuracy of paperwork, speed of delivery, and security. Several disadvantages of e-signature implementation is also discussed.

The article focuses on the importance of newsletters to the marketing program of financial advisers. According to a survey, a newsletter is an important part of the advisers' business for various reasons such as client communication and retention, visibility strategy and credibility building. Some advisers claim that a newsletter provided various uses to them such as a source of new business, a form of public relations and a tool to facilitate client meetings. It provides tips on creating a newsletter. INSET: Time and Money.

The article informs that Securities and Exchange Commission (SEC)'s new Form customer relationship summary (CRS), the ultra concise disclosure document that requires advisors to lay out their obligations to clients. Topics discussed include the documents and offer comparison tools for retail investors with respect to the delivery obligations; and craft a two-page document that includes affiliation and registration details, conflicts of interest, disciplinary history and suggested questions.