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Articles Written by Jon Henschen

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Forced Equality Has a History of Genocidal Results

15:44 24 October in Articles Written by Jon Henschen by rafferty

October 22, 2019 By Jon Henschen, Intellectual Takeout In recent history, the largest genocides have resulted from tyrannical centralized governments yearning for utopian equality for all. Between 1975 and 1979, Khmer Rouge leader Pol Pot carried out a genocide in which approximately 2 million Cambodians died, or nearly a quarter of the country’s population. About 60 percent of the deaths were the result of direct executions – often carried out by pickaxe – and the rest were caused by famine and disease. Russia experienced two famines in the 20th Century. From 1921 to 1922, roughly five million people died due to a combination of effects from the Russian Civil War and the economic disturbance caused by the Russian Revolution. A rail system that couldn’t distribute food efficiently further contributed to the widespread starvation. Seed-grain was eaten rather than sown, and...

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Anatomy of a Fiduciary-Friendly Broker/Dealer

16:51 30 September in Articles Written by Jon Henschen by rafferty

September 25, 2019 By Jon Henschen, WealthManagement.com More choices and lower pricing can protect your clients’ interests and safeguard your practice. Certified Financial Planners (CFPs) are required to adhere to a fiduciary standard when implementing financial plans, but to date, the same requirement has not been applied to investment advice. Effective October 1, 2019, CFPs will be required to adhere to a fiduciary standard on investment advice. Enforcement will begin on June 30, 2020. How great an impact this will have on CFPs is unknown, as the CFP Board has no data on the number of CFPs not adhering to a fiduciary standard on investment advice. In our recruiting discussions with CFPs, we have certainly had discussions with financial planners that do not adhere to a fiduciary standard on financial advice and some that follow...

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The Dark Side of Broker-Dealer Scale: Pain for Advisors

16:16 09 September in Articles Written by Jon Henschen by rafferty

September 5, 2019 By Jon Henschen, ThinkAdvisor Larger broker-dealers consistently tout their scale as a reason to join them, because greater asset levels bring greater profitability, which enables them to bring more to advisors. On the surface, this sounds logical. But when you do some digging, you discover some firms that can afford to give the most can be guilty at times of price gouging, cost cutting and conflict of interest with advisors wanting to adhere to a fiduciary standard. One of the greatest cost savings larger firms don’t talk about is labor. You’ve probably seen a steady stream of news releases and promotional materials highlighting a broker-dealer’s new “services.” However, you rarely hear about servicebecause that is often the weak link. Having high staffing levels is not a guarantee that the service level always will...