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Articles Written by Jon Henschen

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Which Firms Are Really Driven by Financial Planning?

17:08 07 July in Articles Written by Jon Henschen by rafferty

June 21, 2022 By Jon Henschen, ThinkAdvisor  What You Need to Know While consultative selling and financial plan-driven investing have grown dramatically, they are not as widely practiced as you may think. All investment decisions should be backed by some form of financial plan, but often they are not. Product-driven investing is increasingly being forced out, largely by FINRA fines. In 1989, I obtained a securities license through the penny stock firm J.W. Gant, with penny stock firms a common avenue for getting your securities license at the time. These firms were heavily sales driven, with every representative having the book “The Closer” on their desk. (Think of the movie “Boiler Room.”) One week after getting licensed and observing the representatives at this firm, I left for a sounder financial services foundation to build...

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Small Broker-Dealers’ Secret Weapon

19:35 12 May in Articles Written by Jon Henschen by rafferty

May 9, 2022 By Jon Henschen, ThinkAdvisor  What You Need to Know Thriving smaller firms have an area of specialization, such as alternative investments. Smaller firms with high-quality advisors have fewer compliance issues because they know their advisors better than larger firms. Profitable smaller firms typically have low staff turnover, so competency is high, resulting in correct answers and quick response times. This article may run counterintuitive to many industry voices when it pertains to smaller broker-dealers, and by small, I’m referring to broker-dealers with under 200 representatives. One example of industry voices is LPL’s recent comments, on the back of a very successful year of recruiting, that they would be focused on acquisition of small BDs going forward. In spite of the doom and gloom portrayed about small broker-dealers, there are smaller firms that...

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Whose Fiduciary Standard Are You Using?

15:00 28 April in Articles Written by Jon Henschen by rafferty

April 27, 2022 By Jon Henschen, FA Financial Advisor The Securities and Exchange Commission’s Regulation Best Interest is not only confusing to clients. It’s confusing to financial advisors as well. One advisor told me that he now adheres to a fiduciary standard because of this regulation. My response: “Well, not really!” While the regulation requires advisors to put clients’ interests ahead of their own at the time of a securities transaction, a true fiduciary standard asks you to put clients ahead at all times. It’s not limited to the time and date of a particular trade. Take a group whose view on the matter is likely more orthodox: CFP mark holders. Those holding the designation have three core duties: The duty of care. They must act with the care, skill, prudence and diligence that a prudent...