Financial Planning - May 2020

Formed under pressure

How FAs and firms are adapting to a radically different business environment.

Fixed income may take a hit as yield and risk assume new dimensions, analysts forecast.

Advisors — some inspired, some resistant — envision client contact in a post-coronavirus landscape.

What do clients value most from their advisors during turmoil?

As a longtime proponent of flat fees, I see a lot of pain ahead for firms that rely solely on assets under management.

You might consider an assistant, paraplanner or even another full-fledged advisor. I won’t debate the importance of these roles, but I would like to offer an alternative for your consideration.

Turning loss into profit in down markets can seem like magic to some clients.

Can a home equity line of credit offer clients a bridge loan for troubled times? Says one, “I’m going to call those people and rehire them.”

The perennial contender won the top spot in J.D. Power’s annual survey as the coronavirus makes brand and advisor trust even more important to the industry.

Overuse of “may” instead of “will” and gauzy formulations in disclosures won’t cut it despite the halt to in-person exams, an SEC official says.

The passage extends the IRA contribution deadline and waives RMDs for 2020. Here’s what else financial advisors need to know.

Seeing the size and variation in average returns among a variety of asset classes offers perspective for those who are anxious.

“It’s like shopping on Amazon for real estate,” says one investor. But clients pay a premium for the access and convenience.

Most planners have navigated major market events before. Others, like me, have not yet seen anything like this in our adult or professional lives.