By Insurance companies have long sought to increase interest in annuities among financial advisors. Despite rising yields making them more appealing, many advisors still shy away from offering these vehicles to their clients. However, this could be set to change with the introduction of a task force at the Insured Retirement Institute.
Aiming to Tackle Inefficiencies
The task force has the primary goal of addressing inefficiencies in the way advisors purchase and manage annuities for their clients. By identifying and rectifying these inefficiencies, they hope to make annuities a more attractive option for financial advisors.
WisdomTree Stock Overload
An investor recently won a $1.8 million arbitration case against Morgan Stanley. The investor claimed negligence and failure to properly supervise her advisors, who had heavily invested her portfolio in Wisdom Tree stock. After a decade, her account was nearly 100% concentrated in this single stock. Morgan Stanley, however, denies these allegations and expressed disappointment with the decision.
Tax Strategies for Advisors
To deliver comprehensive financial advice to clients, familiarizing oneself with essential tax-planning concepts is crucial. According to our columnist, financial planners don’t need to be IRS experts to make informed decisions. Strategies such as minimizing portfolio turnover, tax-loss harvesting, and evaluating the tax advantages of charitable giving can significantly benefit clients.
Creative Planning Acquires Goldman Sachs Unit
CEO Peter Mallouk of Creative Planning makes a significant move by acquiring United Capital from Goldman Sachs. This acquisition propels Creative Planning, already one of the nation’s largest registered investment advisory firms, further ahead in its goal to establish a national RIA brand. With approximately 200 advisors and $29 billion in assets, the Goldman Sachs unit adds substantial value to Creative Planning’s expanding portfolio, which has grown from under $100 million in 2004 to an impressive $245 billion today. UBS sues departing advisors
UBS, a prominent financial institution, has taken legal action against a high-producing advisor team based in Atlanta. The team recently made the decision to leave UBS and join RBC Wealth Management. UBS alleges that the leaders of the ESOP Group have been actively soliciting their former clients, which violates the nonsolicitation agreements they had in place. The ESOP team had been responsible for managing over $5 billion in assets at UBS and generating an impressive annual revenue of more than $21 million. The details of the lawsuit shed light on the contentious nature of this departure.
Advice for higher-education gifts
It is not uncommon for clients to express a desire to make significant monetary contributions to their alma maters. However, financial advisors are in a unique position to ensure that these generous gifts are structured in the most beneficial way. It is essential to recognize that a poorly structured donation can have adverse effects on both the donor and the institution they intend to support. In certain cases, financial advisors may find it valuable to assist clients in establishing formal agreements with their alma maters. These agreements would outline crucial details such as the timing of gifts, how the donated funds will be managed, and the specific purposes for which they can be utilized. By taking these precautions, both the client and the educational institution can maximize the impact of these contributions.
“Best of” Market Commentary
In lieu of our usual Friday Q&A format, we have compiled some insightful market commentary from recent interviews with industry experts. Here are some notable quotes:
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James Taylor, a financial advisor affiliated with Morgan Stanley, shared his perspective: “As long as we focus on investing in high-quality companies with solid financial standings and positive cash flow, I believe we will be well-positioned for success.”
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Krystal Julius, a wealth management advisor associated with Merrill Lynch, offered her insights: “While short-term volatility is expected, the current financial landscape differs significantly from the 2008 financial crisis. I am optimistic that we will see positive changes in the near future.”
We hope you enjoy the upcoming long weekend, filled with relaxation and rejuvenation.
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