Advisors offer their thoughts on what would encourage registered investment advisors to make greater use of fee-based annuities on behalf of their clients. While sales of fee-based annuities are increasing, they remain a small proportion of total annuity sales.
Jackson National, the biggest seller of variable annuities in the US, said variable annuity sales rose 1% in 2017 from 2016. Late last year, Jackson rolled out a new fee-based version of its Perspective II variable annuity.
The Senate on Wednesday passed the Senior Safe Act, which would protect advisors from legal consequences if they report suspicions of elder financial abuse and encourage firms to provide employee training to help identify and report possible instances. Financial Services Institute President and CEO Dale Brown described the bill as "a big step forward," adding, "We urge the House of Representatives to pass this critical legislation in a timely manner to help ensure our nation's seniors are protected from abuse."
Discuss risk with clients and explain the relationship between risk and return now while market conditions are bullish, writes Joe Elsasser of Covisum. He suggests an efficient way to calculate individual risk and provides answers to questions clients may ask.
Robo-advisers and social media should not be seen as threats to the advisory business -- rather, they should be embraced by advisers and clients to improve communication and collaboration on investment decisions, writes James Capps of Trust Company of America. "[It] now happens that investors and advisers can find creative ways to use technology to their advantage and quickly reach greater levels of mutual understanding and strategic planning," he adds.
The majority of registered investment advisers who have left wirehouses in the past few years to establish independent practices report an increase in revenue, finds a survey by Schwab Advisor Services. The enterprise value and cash flow is higher for independent advisers, says Shirl Penney, president and CEO of Dynasty Financial Partners, who adds that advisers are taking an approach of "I'm going to transition, build my business out, and then ultimately monetize it in a much more tax-efficient and profitable way on the independent side."
Commodity Futures Trading Commission Chairman J. Christopher Giancarlo said Wednesday he plans to "put before the Commission a rule proposal for notice and comment this year" on improvements to the Dodd-Frank Act's derivatives regulation. He said he wants to "better align to inherent market dynamics, fully allow US swap intermediaries to fairly compete in world markets and begin to reverse the tide of global market fragmentation."
A report from SavingForCollege.com calculates that the total cost of sending someone to a four-year college 18 years from now will be about $355,000 for a private school and about $157,000 for a public college. The report suggests it may be more realistic for families to plan on saving enough to pay between 25% and 33% of the cost, rather than the full amount.
The Securities and Exchange Commission has been asking hedge funds focused on cryptocurrency and initial coin offerings for information on how they set pricing for digital investments, according to people with knowledge of the review. The SEC also wants insight into the funds' compliance with protections meant to keep investors' money from being stolen, the sources said.
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