Headlines you need to know this week

July 16, 2019

FPA suggests CFP Board delay enforcement of fiduciary rules

The Financial Planning Association (FPA) has asked the Certified Financial Planning (CFP) Board to consider delaying implementation of its new fiduciary standards. The FPA indicated it would be helpful to have more time to prepare its compliance processes. The CFP Board’s standards are set to take effect on October 1, 2019.

Outliving retirement savings is a global issue

A recent report from the World Economic Forum found that a growing number of people in six developed countries are at risk of running out of money in retirement. In the United States, men may outlive their savings by 8 years and women by 11 years. Still, these estimates are better than projections for other developed economies, the report found. By 2050, the number of people over the age of 60 is projected to be 2.1 billion. Globally, pension and government systems have not kept up with trends in longevity.

MSCI adds ESG ratings to funds

Data provider MSCI Inc. has added environmental, social, and governance (ESG) ratings to more than 30,000 funds and ETFs. The MSCI ESG Fund Ratings offer investors 200 additional metrics for analyzing ESG characteristics in portfolios.
July 9, 2019

Summer may inspire creative client events

Hosting events can help advisors strengthen relationships, connect with the next generation, and prospect for new clients. A recent wealthmanagement.com article offers tips on creating a client event. When making the invitation list, some advisors may group individuals together by age or level of wealth. To identify participants, it may be more relevant to focus on client goals and interests. To differentiate their practices, advisors can find creative ways to link events to a financial theme. One idea is taking a group on a hike to educate them about sustainable investing.

More women start a business in retirement

The percentage of retired women starting a business rose to 3.0% in 2018, up from 2.3% in 2016, outpacing the average rate of entrepreneurship (2.1%) among all workers in 2017. While the trend represents a small population, Babson College researchers note it is significant because most women are retired by age 65. Only 15% of women in this age group are still in the workforce, according to the Bureau of Labor Statistics.

California launches state retirement savings plan

California officially launched its state-sponsored retirement plan. The program requires employers with five or more workers to offer a private workplace savings plan or join the state plan. It is estimated that 7.5 million workers will have access to the plan. California is the tenth state to establish a state-sponsored plan.
July 2, 2019

Repeal of SALT cap would cut taxes for millions

An estimated 13 million taxpayers would receive a tax cut if Congress repealed the cap on the state and local tax (SALT) deduction, introduced as part of the 2018 tax reform. The Joint Committee on Taxation’s report noted that 94% of those who would receive a tax cut have an income of at least $100,000. The report was released in advance of hearings held last week by the House Ways and Means committee to review the impact of the deduction cap.

Several states seek to establish fiduciary regulations

The state of New Jersey announced a July 17 public hearing to receive comments about its proposed rules for fiduciary standards. The notice also extended the comment period through July 18. In Massachusetts, the Secretary of State’s Securities Division is seeking preliminary comments on a proposed rule to set a fiduciary conduct standard for investment advisors, broker-dealers, and other financial professionals.

State and local governments consider ESG investing

A rising number of state and local governments are considering investing that focuses on environmental, social, and governance (ESG) criteria. In 2016, state and local governments held about $6.8 trillion in assets (Source: Census). A report by the US SIF Foundation found that state and local governments were assessing ESG issues across 38% of those assets.
June 25, 2019

Married women may not be saving enough

New research found that married women may be at a higher level of risk to have insufficient retirement income than single women. Boston College’s National Retirement Risk Index noted 46% of married women are at risk compared with 39% of single women. The study noted that married women tend to save less for retirement.

Technology is essential for advisors

Technology, used in combination with a human relationship, is essential for financial advisors, according to a recent report. A 2015 survey found that only 32% of investors working with a financial advisor placed a higher value on financial returns than a good personal relationship with their advisor.

Advisors anticipate business growth

A recent survey of more than 900 advisors found that 94% expect to grow new assets over the next five years, even if the market experiences a downturn this year. To position for growth, more than 90% of advisors said they plan to invest in technology as well as increase sales and marketing activities. About two-thirds of respondents said they were concerned about a market decline.
Wealth Management Center

Read our views on preserving and enhancing wealth for the future with financial-planning experts Bill Cass and Chris Hennessey

Putnam Perspectives

Explore our thinking about today’s financial markets

Advisor Tech Tips

Stay on top of trends in mobile technology, software, and social media