Headlines you need to know this week
DOL seeks 18-month delay of fiduciary ruleIn a proposal to the Office of Management and Budget, the Department of Labor is seeking an additional 18 months to implement parts of the fiduciary rule. If the proposal is approved, these provisions would be implemented in July 2019.
Financial advice industry getting youngerThe average age of financial advisors is beginning to edge lower. More firms are hiring recent college graduates and nearly one third are targeting graduates for client-facing roles, according to a recent report. The median age of lead advisors slipped to 47 in 2017 from 50 in 2015.
Summer is busier than ever for advisorsIs the summer season getting busier? Some advisors note that the typical slowdown in June, July, and August may be a thing of the past. Clients may take vacations but continue to stay in touch with advisors on mobile devices. InvestmentNews offers some ideas to avoid burnout at work.
Knowledge gap may influence confidence among millennialsA lack of knowledge about personal finance may add to a low level of confidence for millennials. A George Washington University study found about 34% of millennials were unsatisfied with their financial situation. More than half were worried about their ability to pay off student loans. Yet only 8% surveyed had a “high level“ of financial knowledge and only 25% had as much as a basic understanding of finance.
Advisor optimism fallsOptimism about the economy and stock market has declined among registered investment advisors (RIAs), a mid-year survey found. The portion of participants citing optimism about the U.S. economy fell to 60% in June from 68% in January. More than half (56%) of respondents do not believe the stock market momentum will continue through the end of the year.
RIA numbers reach all-time highThe number of registered investment advisors (RIAs) reached an all-time high of 12,172 in April, representing a 2.7% increase from a year ago, the Investment Adviser Association stated in its annual report. Breakaway teams continue to join RIAs in record numbers, the report noted.
Few part-timers have a workplace retirement plan, but many feel confidentOnly one-third of part-time workers have access to a retirement plan at work, compared with 69% of full-time employees, a new study found. About one-third of part-time workers said they “feel good” about saving for retirement, compared with 41% of full-time workers. Many part-timers (35%) have a financial plan, compared with 45% of full-time workers.
Fiduciary rule opponents call for longer delayOpponents of the Department of Labor’s fiduciary rule are pushing to delay the implementation of the rule until January 2019. At the same time, congressional Democrats want the DOL to keep the planned implementation date of January 1, 2018. The Investment Company Institute and U.S. Chamber of Commerce were among those seeking delays, according to comments submitted to the DOL.
Financial literacy an issue for retirees, especially womenA recent survey from the American College of Financial Services found that retirement-age women lagged men in their knowledge about securing income in retirement. Although neither group were high scorers, 18% of women passed the college’s retirement-income literacy quiz, compared with 35% of men. The study also noted that effective planning is linked to financial literacy.
More people participated in 401(k) plans than previously thoughtNew analysis from the Investment Company Institute (ICI) stated that 63% of all workers ages 26 to 64 participate in an employer-sponsored retirement plan either directly or through a spouse. The report uses 2013 IRS tax data. The ICI claims that Bureau of Labor Statistics research understated plan participation by about 5%.
Advisors organizing family meetings to talk wealth transferMany financial advisors are introducing new programs and ideas to talk to their clients, as well as their families, about wealth transfer, CNBC reports. With more than $30 trillion expected to move from boomers to the next generation in the coming decades, heirs will likely need guidance. Some are organizing meetings with multiple generations. Younger advisors are also playing a role in this business building effort.
Robo-users prefer human advisors when creating a planDespite the rise in use of robo-advisors, many investors prefer to work with a human when crafting a financial plan, according to Investor’s Business Daily. Among investors using a robo-advisor surveyed by the Spectrem Group, only 13% cited the robo as their primary advisor, while 18% said they use a full-service broker as a primary advisor. A full 66% said human advisors did a better job creating financial plans and 50% said people were more capable of making changes to those plans.
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