Headlines you need to know this week

September 21, 2020

Engage investors with personal posts

Financial professionals seeking to engage more with clients are increasing their use of social media. Automating content delivery can help. But a recent article noted that the majority of content shared in the wealth management industry focuses on corporate marketing or products. Several studies indicate that personal interest posts are the most popular and shared more often. Topics that include philanthropy and culture tend to be shared more, the article stated.

Investors more optimistic about the market

In a recent survey, more investors reported an optimistic view of the stock market. The AAII Investor Sentiment Survey found that bullish sentiment — that stock prices would likely rise in the next six months — increased by 8.3 percentage points. The survey also found that bearish sentiment, reflecting a view that stock prices will likely fall, declined by 8.1 percentage points.

Senior League anticipates Social Security COLA for 2021

The Senior Citizens League is projecting a 1.3% cost-of-living increase for Social Security benefits in 2021. The Social Security Administration is expected to make an official announcement in a few weeks. The League made its calculation based on consumer price data through August 2020. The organization noted that a 1.3% increase would be the second lowest in the program’s history and would raise the average benefit ($1,517) by $19.70.
September 15, 2020

RMD rollback provision expires

A CARES Act provision for the rollback of required minimum distributions this year expired August 31. Investors must now revert to old rules for managing distributions from individual retirement accounts (IRAs). Earlier this year the CARES Act waived RMDs for 2020. A temporary provision allowed individuals who had already taken an RMD to roll it back into their IRA.

How ultra-wealthy investors find advisors

Recent research shows that many high-net-worth and ultra-wealthy investors consult family and friends for recommendations when seeking a financial advisor. Most wealthy investors under the age of 45, however, use online search. The study found that 81% of high-net-worth investors use a financial advisor. That number rises to 88% for ultra-high-net-worth individuals.

Senior investors have confidence: Survey

A recent study found that many senior investors may be more confident about investing and, as a result, take on more risk. While overconfident investors were more likely to take on risk, they were not more susceptible to financial scams or fraud, the report found. The study included more than 1,000 participants ranging in age from 58 to 101.
September 8, 2020

Massachusetts implements state fiduciary rule

Massachusetts last week became the first state to implement its own fiduciary rule for financial professionals. While the regulations initially took effect in March, the state did not begin enforcing the rule until September 1. Other states, such as New Jersey, are considering passing similar state regulations.

Trends emerging from pandemic

The pandemic has impacted how financial professionals conduct their businesses. A recent commentary reviewed several key trends that may be priority topics for advisors as they navigate through the changing environment. These areas include cybersecurity, the streamlining of portfolio management, evolving rules around fiduciary standards, and increased use of technology for virtual meetings.

Succession-planning challenges for women entrepreneurs

Succession planning may present unique challenge for women entrepreneurs as research indicates that women may be more likely to step away from their business than male business owners. As a result, women may need to focus earlier on succession planning and determine the value of their business. A Harvard Business Review study found that women business owners were 15% more likely to exit their business for personal reasons such as family caregiving.
September 1, 2020

Pandemic impacts women-owned businesses

Small businesses owned by women have been disproportionately impacted by the pandemic and the economic shutdown, according to a report from the U.S. Chamber of Commerce. As a result, these businesses are less likely to project growth in revenue, investment, or staffing. Since the pandemic, women entrepreneurs have been more likely to report a decline in the health of their businesses. In January, the number of business owners hiring new staff was about even between men and women business owners. However, in July, 15% of women-owned businesses added staff in the previous 12 months, compared with 25% of businesses owned by men.

More women are taking charge of finances

An increasing number of women are taking charge of household finances and report having high expectations from financial professionals, according to a recent survey. In general, most respondents said they were satisfied with their advisor. The survey found that 40% of women would likely follow their financial advisor to another firm.

Are Millennials talking about homeownership?

Millennials are significant drivers of the housing market rebound, according to a report. Millennials account for more than half of new home loan applications in 2020, as they did in 2019. The National Association of Realtors found that Millennials accounted for 38% of all homebuyers in the year ended July 2019, an increase from 32% in 2015.
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