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financial advisors

Recruiting Speeds Up

21:25 02 August in In the News by rafferty

August 1, 2017 By Dan Jamieson, Financial Advisor Magazine Recruiting activity among independent broker-dealers is regaining momentum now that the DOL rule is back on track. Many advisors have been evaluating their broker-dealer relationships in light of the new requirements the DOL will impose. Big firms like LPL Financial and Raymond James are changing their payout formulas in response to the rule and others are likely to follow. But independent broker-dealer execs say that some recruits in the pipeline held back on making decisions early in the year after President Trump ordered a review of the rule. That gave opponents of the DOL plan—including many B-Ds and independent reps—some hope that the rule would be indefinitely postponed. But the U.S. Labor Department ended up delaying the initial implementation for just 60 days, to June 9,...

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DOL regulation translates into pay cut for some advisers

20:14 21 July in In the News by rafferty

July 20, 2017 By Bruce Kelly, Investment News The Department of Labor's fiduciary rule has morphed into a pay cut for some advisers, who are left wondering whether a reduction in their compensation is being used to bolster the bottom lines of the broker-dealers with which they work. Sure, it would be rather cynical to say that firms are taking advantage of the new fiduciary rule, meant to eliminate potential conflicts brokers face when recommending one product to clients rather than another. The rule is meant to do good for investors, so how could it be twisted to the detriment of advisers? The brokerage business can be a cynical business. Just think of the dotcom bomb of 2000 and the credit crisis of 2008. In both instances brokers sold securities they didn't understand to...

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What Boomers’ Retirement Means for the Advisor Industry

16:51 21 July in Articles Written by Jon Henschen by rafferty

July 18, 2017 By Jon Henschen, published on WealthManagement.com   Our industry will be unable to keep up with the demand for new advisors to fill the vacancies left by boomers retiring. The number of financial advisors (RIAs) peaked in 2008 at 325,000. By 2014, that number dropped to 285,000 (Cerulli Associates). The number of FINRA registered representatives is currently at 633,822 (April 2017), which is down from 643,433 in 2015. This reflects only the beginning of boomer retirement trends. Public accounting firm Moss Adams has forecast a shortfall of 200,000 advisors by 2022, with boomer retirement continuing through 2030. This will only compound the shortfall of advisors. The average age of advisers today is over 50, and 41 percent of advisors are 55 or older according to Cerulli. The industry has responded with...

Boomers to Cause Markets to Go Bust

19:58 19 July in Articles Written by Jon Henschen by rafferty

July 17, 2017 By Jon Henschen, published on WealthManagement.com   As boomers retire and exit the economic-contribution side of society, we’ll likely see a stock sell-off. Living in Los Angeles from 1979 to 1995, I grew accustomed to my TV viewing being interrupted by breaking news of car chases. A slightly different TV breakaway event occurred on July 2, 1982, when San Pedro resident Larry Walters, out of sheer boredom, purchased 42 8-foot weather balloons and several tanks of helium. Larry filled and tied the balloons to his lawn chair and took flight, reaching altitudes of 15,000 feet. “Lawn Chair Larry” drifted into the controlled airspace of LAX airport, prompting pilots to report the safety hazard to the control tower. This stunt captivated the Los Angeles audience for weeks, and the constant car-chase breakaways took a back seat...