INSTITUTE MEETS WITH SEC COMMISSIONERS REGARDING CIMA®, CPWA® CERTIFICATIONS
In recent weeks, IWI representatives have met with three of the four SEC commissioners and staff attorneys to discuss the recently amended definition of an accredited investor and the potential inclusion of individuals holding qualified certifications under the definition.
Do you want to accelerate your career? Start 2021 off right by committing to your advanced education through an Institute certification. Join Director of Programs, Mike Kurz, CIMA®, CPWA® as he delves into what the Certified Investment Management Analyst® (CIMA®) certification is all about.
Can't wait until April? Watch a recorded version now.
ACE Academy 2021 Speaker Mihir Desai, PhD
Finance has often been perceived as a business of swindling and deceit and as a boring matter of spreadsheets and numbers. What makes both these impressions problematic is that finance is actually the lifeblood of our economy, as well as a moral and creative pursuit. Yet it lacks nearly any defenders on these grounds. Until now, that is.
In this presentation based on his latest book, The Wisdom of Finance: Discovering Humanity in the World of Risk and Return (Houghton Mifflin Harcourt, May 2017), Professor Mihir Desai examines, through the prism of literature and moral philosophy, how finance betters individuals and the world. Since the financial crisis of 2008, finance as an industry and profession has been tarnished as morally suspect and corrupt. Firms and individuals in finance have failed to regain (or gain at all) the public’s trust in their methods and motives.
In his writing and speaking, Desai reveals that if the financial industry is to survive popular disdain – and the political and regulatory attacks that come with it – those who work in and benefit from finance must mount a vigorous defense of its core principles of creation, growth and moral worth. In the process, men and women who work in finance will gain a better insight into their own careers and lives and, perhaps, a better understanding of what they do and how they can do it better.
ACE ACADEMY 2021
April 25 - 27
Livestream + On-demand
Princeton, Harvard, Yale, Stanford, MIT, Wharton, Booth - these elite institutions represent the world-class speakers who will be presenting at ACE.
Join us as we REDEFINE the future of the investment and wealth management industry, starting with the ways we connect and engage with each other. Join us at ACE Academy 2021, taking place April 25-27, for an opportunity to translate the latest research, insights, and ideas into actionable strategies for your clients and prospects.
Results of a quantitative study conducted by the Options Industry Council (OIC), a service of OCC, showed that advisors have low confidence levels about using options. Using practical examples and demonstrations, this course is designed to provide advisors with fundamental knowledge about options, as well as essential skills to implement practical strategies.
This course begins with a high-level overview of alternative investments, including general characteristics of alternative investments, the categories of alternative investments, and the benefits of including alternatives in a portfolio.
The Essentials of Investment Consulting program is designed for financial service professionals and their teams seeking to enhance their fundamental knowledge of core topics related to the investment consulting process. Comprised of two courses, the Investment Consulting Process and Math for Investment Consultants, this educational primer on investment consulting uses new study techniques and tools for an enhanced learning experience.Learn More
NEW AMMO FOR THE AFFLUENT: NEXT GENERATION PRIVATE SECURITIES
A productization wave, based on major legal and market structure developments, has made private equity much more suitable and accessible for individual clients. Advisors who are fluent in the subject matter can add significant value to their clients' portfolios and their own practices.
Portfolio management is evolving quickly with advisors facing a growing range of options in how to manage assets for clients. The challenge is striking the right balance between passive vs. active management, incorporating clients’ behavioral preferences, and providing institutional-quality access to alternative investments.
INSTITUTIONAL-QUALITY, PRIVATE PORTFOLIOS FOR ACCREDITED INVESTORS—NEW PRACTICAL SOLUTIONS
Advisors to accredited investors have been challenged to build institutional-caliber portfolios of private investments for many legal and practice management reasons. Now, a new wave of products aims to change that. In this three-part workshop presented by Delaware Funds by Macquarie, join Bob Rice as he moderates a discussion among institutional fiduciaries, advisor practice experts, and product design professionals to explain the opportunity across various private markets asset classes.
This is part of the ACE Unplugged on-demand package.
Brought to you by Swan Global Investments
The 60/40 is dead. Traditional portfolio construction is ill-suited to tackle the challenges presented by historically low yields coupled with equity markets near all-time highs. Advisors are seeking other solutions to produce necessary returns and mitigate risk in order to steward investors to and through retirement. Gain practical insights on the due diligence and portfolio implementation of options and option-based strategies as one possible solution.Learn More
Noel Pacarro Brown, CIMA®, CPWA®, First Vice President at Morgan Stanley, delves into strategies for overcoming difficult and uncertain financial climates. Her insights include client communication, alignment, and understanding.Listen Now
THRIVING THROUGH THE NEW LANDSCAPE
Kevin M. Sánchez, CIMA®, CPWA®, CFP®, former Institute Board Chairman, talks about thriving despite a global pandemic and economic uncertainty. He discusses using behavioral finance tools to make his clients feel comfortable and secure, and the importance of educating clients.
From Investments & Wealth Monitor
Modern portfolio theory (MPT) assumes that investors are risk averse, meaning that given two portfolios that offer the same expected return, investors will prefer the less risky portfolio. The implication is that a rational investor will not invest in a portfolio if a second portfolio exists with a more favorable profile of risk versus expected return. MPT has a number of inherent limita-tions. This article addresses some of the limitations of MPT and evaluates alternative techniques for allocating capital.
Since 1990, nearly 20 global events have caused short-term panic and uncertainty. The COVID-19 pandemic has created significant volatility in the stock market and record low interest rates that have resulted in an income crisis as investors search for yield. Private (non-exchange traded) real estate may offer a way to shield investors from short-term stock market volatility and also generate income.
Join Black Creek Group to discuss the resilience of private real estate amidst historical global crises and how it can provide a potentially meaningful source of income for investors in a time of low yield.
THE THREE D'S YOU SHOULD WATCH IN 2021
Article from Professional Pensions
Dambisa Moyo, PhD, looks at how three prominent trends will dominate throughout the next year. By the end of 2019, a "2020 Vision" had become a well-worn cliché among those looking to the coming year.
As we know, the dominant theme of the year turned out to be a global pandemic that few, if any, had predicted, and which had a seismic impact on markets and economies around the world.
Impact investing has become a vibrant option for high-net-worth investors seeking to align their portfolios and their values. The combination of this growing opportunity set and burgeoning investor interest in sustainability has set the stage for the rise of impact investing, a segment within the sustainable investing universe that seeks to generate a measurable social and environmental impact alongside a market-rate investment return.
February 22 @ 1:30 p.m. ET
Are you prepared to serve your high-net-worth (HNW) clients with the sophisticated strategies that they are seeking from their advisor? This live 30-minute webinar explores what HNW clients are looking for and how you can help them with the education you'll receive in the CPWA® certification program. Continuing Education credit (CE) is not available for this overview.
May 26 @ 11 a.m. ET
Private securities are a critically important asset that institutions and high-net-worth investors cannot afford to exclude from their portfolios. Academic and practitioner experts provide up-to-the-minute information about private equity and credit, including the impact of the pandemic on the sector. This event is designed for institutional consultants and wealth advisors to develop a competitive edge by providing access to this key market.
Registration coming soon!
Livestream + On-demand
Join us as we REDEFINE the future of the investment and wealth management industry, starting with the ways we connect and engage with each other. Join us at ACE Academy 2021, taking place April 26-27, for an opportunity to translate the latest research, insights, and ideas into actionable strategies for your clients and prospects.
Hear from Harvard Business School Professor, Mihir Desai, PhD. His workshop, The Wisdom of Finance: Discovering Humanity in the World of Risk and Return, will help advisors gain a better insight into their own career and lives and, perhaps, a better understanding of what they do and how they can do it better.
The Family Love Letter provides a convenient manner to communicate the important information needed in case of incapacitation or death to family members. The Family Love Letter is not a legal document or substitute for estate planning, but it can function as a supplement to any good planning and a source of great comfort to loved ones in a time of stress and confusion.
Private Wealth Essentials is an introduction to working with private wealth clients. This 14.5-hour course focuses on the specific needs of high-net-worth clients in five core areas:
Private wealth clients have unique needs, and advisors with advanced expertise and knowledge can add significant value for these clients by addressing those needs competently. While providing insight, effective strategies, and real-world tools, financial professionals will be able to distinguish themselves among those that serve high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients.
Raymond James’ vetted longevity solutions for longer living are distinctly unique and offer a way to drive client conversations, and their portfolios, towards a personalized outcome. How do you initiate these conversations? The most effective way to introduce these concepts is via the planning process. In this session, tune in and discover how to create a differentiated advantage by changing the conversation, provide clients with what they really want and, in the process, make your message impossible to ignore.More Details Coming
Garry Bridgeman, CIMA®, Co-chair of the Institute's new THRIVE Council of Ambassadors discusses the new THRIVE Center for Diversity & Inclusion and why diversity and inclusion initiatives are so important for making a change within in the industry.
Sponsored by John Hancock Investment Management
Matthew D. Miskin, CFA®, Co-Chief Investment Strategist at John Hancock Investment Management discusses the trend toward passive investing and various asset classes.
In this special episode, Noel Pacarro Brown, CIMA®, CPWA®, First Vice President at Morgan Stanley, shares her best practices for communicating with clients and aligning messaging to stay calm and positive.
Jeffrey Levine, CPA/PFS, CFP®, CWS®, MSA, the Director of Advisor Education for Kitces.com, discusses the QBI reduction of small business owners.
Michael Kitces, MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL, Partner and the Director of Wealth Management for Pinnacle Advisory Group, shares his strategies for dealing with Roth conversions.
By acknowledging that advisors are subject to many of the same behavioral biases as clients, the new report, Mitigating the Impact of Advisors’ Behavioral Biases, will show advisors how they can improve their portfolio construction and management processes.
Many experts agree that meaningful and valuable training increases morale and has a significant impact on the productivity of their advisors. In fact, the research group Gallup, found that one of the most important factors in creating a “high-performance workplace” is creating a culture that values the growth of individuals.
Mitigating the Impact of Advisors’ Behavioral Biases report shows advisors how they can improve their portfolio construction and management processes by acknowledging their own biases and develop safeguards to prevent costly mistakes.
Article from the Retirement Management Journal
Olivia S. Mitchell, PhD, Professor at Wharton, going into detail as to how longer lifespans and prolonged retirement periods are requiring adjustments to Social Security benefits, employee pension plans, and individual retirement savings.
Do you want to accelerate your career? Start 2021 off right by committing to your advanced education through an Institute certification. Join Chief Learning Officer Devin Ekberg, CIMA®, CPWA®, CFA®, as he delves into what the Retirement Management Advisor® (RMA®) certification is all about.
Moe Allain, RMA®, CPWA®, AAMS®, MBA, Financial Advisor for Baird Retirement Management uses the Retirement Management Advisor® Certification to bring success in providing retirement clients precisely what they need.
ACE ACADEMY 2021
April 25 - 27
Livestream + On-demand
Join us, as speakers like Patrick Collins, CFA®, CLU®, Founding Principle at Schultz Collins, weigh in on monitoring, evaluating, and managing a retirement income portfolio. "Our book focuses on evaluating retirement income portfolios in an asset/liability framework. "Metrics of interest are (1) initial and continued feasibility of the investor’s retirement income goals; (2) continued sustainability of the investor’s income target(s) throughout the applicable planning horizon; and, (3) the investor’s financial security against unanticipated expenses (monetary surplus). Client goals may include income, gifting, and bequest objectives."
Retirement Management Advisor Online Course offered online, on-demand, provides a comprehensive, unified text of RMA readings, recorded lectures, video insight from industry leaders, and much more. 25 CE Credits.
University of Toronto Professor Michelle Silver invites you to rethink your perceptions about aging and retirement. She discusses retirement from its early policy roots to the social phenomena it has become with a focus on implications for people whose personal identity has always been closely intertwined with their work. 1 CE Credit.
Joe Coughlin, Marc Milstein, Bob Mauterstock, and Peter Conti-Brown take on the most prevalent retirement planning issues in our world today. Learn from the experts when it comes to holistic, multidisciplinary planning for all members of a household. Whether you’re part of the Institute’s Retirement Management Advisor® program, or simply looking for a better way to support your retirement clients, these are the on-demand recordings for you. 4 CE Credits.
Life expectancy has increased dramatically over the past century and it is one of the most important variables in financial planning. For retirement planning purposes, it’s critical to predict one’s life expectancy during retirement. How long a client will live and at what age they will retire are two key factors in determining a client's financial plans. Tune in as retirement experts Robert Powell and Shelly Giordano delve into practical takeaways to discuss with clients how to best prepare for the future. 1 CE Credit.
Retirement planning must be a client-centric process and address the unique mindsets retirees face as they transition from accumulation to decumulation. Drawn from the RMA® curriculum, this event highlights practical frameworks for developing a Household Balancesheet™ as the center of a financial plan, mitigating retirement risk, and goals-based portfolio construction.
Ep. 40: Larry Jacobson, Retirement Planner and award-winning author, discusses his award-winning coaching program specifically designed to help your clients find, develop, and follow their passion as they move into retirement.
Retirees who saved a good portion of their earnings during their working years, accumulated a sizeable nest egg, and
allocated their assets in a way that matched their risk profile and supported their future spending needs should feel
confident about their ability to enjoy a long, happy retirement—or should they?
Even in a divided government, potential far-reaching changes to retirement savings are on the horizon. Here are five significant ways a Biden administration could make lasting changes to your retirement.
"The financial planning industry has been saying this for decades … we are unprepared. On so many levels, people everywhere, particularly in America, are not thinking enough, saving enough, or understanding enough, about retirement."
"A recent report from Fidelity shows that 23.2% of baby boomers in a defined contribution plan have too much exposure to high-risk investments. And that, in turn, could open the door to serious losses that these savers may never recover from."Read More
"On the website of the interest group that represents American retirees, there’s palpable concern about the future. The vast majority of Americans haven’t saved enough in their retirement accounts to cover their expenses after they finish working. Rising health-care costs and increasing life expectancies only aggravate the problem. And the state pension is a hot political issue. Exactly one month after the US Presidential election, Representative Sam Johnson introduced a bill that would address a looming shortfall in Social Security, the massive federal pension program, by cutting benefits..."Read More
Advisors and their clients can make retirement surprises more manageable by deliberately planning for the unexpected and documenting the strategies. It is up to you as the advisor to get to the root of those fears and help clients find a way to discuss and manage the related financial issues. Sometimes, particularly for clients who are good savers, it is in the form of reassurance that they can afford what they have been longing to do. In other circumstances, it can be breaking the tough news that work may need to continue, either full- or part-time, for longer than initially thought.
Sponsored by PIMCO, DPL Financial Partners and New York Life Insurance Company
Many retirees require a goals-based planning approach, particularly when generating a consistent and sustainable income stream in retirement. As clients transition from accumulation to decumulation, advisors are turning to flexible solutions to deliver a certain level of consistent income to meet clients' needs in the current low-yield environment. This program will introduce you to strategies and considerations for creating holistic, goals-based retirement income plans for your clients. 4 CE Credits.
Nick Halen, Corporate Vice President at New York Life Insurance Company, discusses retirement income strategies during an economic crisis. This podcast is sponsored by New York Life.
Dana Anspach, CFP®, RMA®, founder of Sensible Money, LLC, a fee-only registered investment advisory firm, discusses the value of the RMA certification and how it prepared her for the current economic crisis.
Center for RIA Excellence
ACE ACADEMY 2021
April 25 - 27
Livestream + On-demand
Join us as we REDEFINE the future of the practice, investment, and wealth management industry, starting with the ways we connect and engage with each other. Join us at ACE Academy 2021, taking place April 25-27, for an opportunity to translate the latest research, insights and ideas into actionable strategies for your clients and prospects.
WHAT ADVISORS NEED TO KNOW ABOUT TECHNOLOGY TRENDS
From Investments & Wealth Research
Cerulli Associates examines the implications of the growing use of technology in advisor practices. To do this, a proprietary scoring system was used to group practices based on their reported use of technology across various categories, adjusting for practices that continually upgrade their technology. This allows Cerulli Associates to determine the impact of technology on advisor productivity and processes, identify key practice attributes of high versus low adopters, and uncover barriers to increasing adoption.
THE INSTITUTE IS GIVING AWAY $50,000 IN RIA SCHOLARSHIPS
In a year unlike any other, many individuals had to face unexpected challenges on a variety of levels. The Investments & Wealth Institute is opening doors by awarding $50,000 in scholarships throughout the holiday season to advisors within the RIA community, by providing access to Ivy League-quality education for those who don’t have tuition reimbursement programs, so that they can become future leaders within the industry and reach their personal career goals.
APPLIED BEHAVIORAL FINANCE
No matter what’s happening with interest rates or whether the market is up or down, behavioral finance affects us all—client and advisor alike. Understanding that we’re subject to the forces of behavioral finance and how to work with those forces to clients’ advantage can greatly enhance the advisor-client relationship.
Why did your competition land that endowments and foundations client and not you? Learn the unique dynamics of advising nonprofit clients, the key principles of successful consulting and investment management, and best practices for maintaining rewarding relationships.
Whether your expertise is in wealth management, retirement, or portfolio construction, it’s important to turn the theoretical into the practical to become a successful behavioral advisor. Learn real-world advisors' best practices for incorporating behavioral science into their practices from a panel of practitioners.
Are HNW women investors less risk-tolerant? Are their goals and needs really that different from their executive male counterparts? Join Laura Gregg, Director of Practice Management and Advisor Research at FlexShares Exchange Traded Funds, managed by Northern Trust, to learn both new findings of gender differences in HNW executives and how you can apply the research to adjust your approach and achieve better client outcomes.
Cynthia Pagliaro, Senior Research Analyst at Vanguard, speaks about assessing the value of advice, including, but not limited to developing metrics to measure the monetary value of advice, including emotional value.Listen Now
Duane Thompson talks about Regulation Best Interest, a new ruling made by the SEC. He reviews the ruling, which was designed to enhance investor understanding of what advisors do, at a high level.Listen Now
Articles, White Papers and Blogs
Sponsored by Allianz
Allianz has committed dedicated resources and are invested in helping RIAs integrate risk management solutions as a part of a comprehensive wealth management practice.Learn More
From the Investments & Wealth Monitor
Despite the pervasiveness of the "past performance is no guarantee of future results" disclaimer and decades of research that supports it, many investors often behave as though past performance does predict the future. As a result, they allow recent performance to shape their expectations of future asset class returns and make a similar error when evaluating active investment managers.Read More
DEMAND FOR RIA TALENT GROWS AND WITH IT SO DOES COMPENSATION
The latest edition of the Schwab RIA Compensation Report shows that the expansion of the wealth management industry is driving compensation higher as competition grows.Read More
The research explores how advisors can stand out in a crowded market, where high levels of client satisfaction and loyalty are not enough to set them apart. The study also examines how articulating the value of advanced credentials can provide meaningful differentiation among discerning high-net-worth investors.Read More
Many experts agree that meaningful and valuable training increases morale and has a significant impact on the productivity of their advisors. In fact, the research group Gallup, found that one of the most important factors in creating a “high-performance workplace” is creating a culture that values the growth of individuals.Read More
LICENSURE VS. CERTIFICATION
There are distinct differences between governmental licensure and certification, both of which set standards for an industry. Licensure is mandatorily required to practice in the area requiring it, whereas certifications are voluntary. Each plays an essential role in establishing a more competent and ethical profession, and each plays a role in benefiting the consumer.Read More
Continuing education is necessary for our industry and for financial advice professionals to stay current with the latest developments, skills, and new technologies. This blog, from the Institute's Chairman and CEO Sean Walters, explores this concept.Read More
There’s no shortage of free information out there. It’s everywhere you turn these days—social platforms, data, products, education, news, content. But if the content is free, you become the product. Learn more from the Institute's Chief Learning Officer Devin Ekberg, CFA®, CIMA®, CPWA®.Read More
With recent volatility associated with the coronavirus, it’s worth revisiting how we can help clients in navigating these turbulent times. The temptation for many investors is to go to the sidelines when things get difficult. But fear is not a strategy—it’s an irrational reaction to uncertainty.
Article from Investments & Wealth Monitor
This article investigates the financial attitudes and behaviors of Generation Z, defined here as persons born between 1995 and 2010. Older members of Generation Z are either currently entering or recently have entered the workforce, yet very little is known about the financial landscape of the newest generation of professionals. This knowledge gap begets challenges for advisors and other financial professionals in helping young adults and children of current clients as they begin their financial journeys.
Your Investments & Wealth Institute certification differentiates you from other advisors, but are your prospective and current clients aware? Discover the characteristics of an exceptional advisor by uncovering and understanding the traits that clients consider important. Use the tools provided in the course to write plans for better communicating your value.
THE EXCEPTIONAL ADVISOR TOOLKIT
The Exceptional Advisor® program is born out of research conducted by the Institute and AbsoluteEngagement.com. The research shows that clients value an advisor who demonstrates advanced capabilities, exceptional service, a personalized approach, and meaningful guidance. All this is built on the pillars of adherence to high ethical standards and expertise in the field. This model depicts the core competencies of an Exceptional Advisor.
ACE ACADEMY 2021 OPENING KEYNOTE— ATOMIC HABITS: HOW TO GET 1% BETTER EVERY DAY
James Clear, Personal Development Keynote Speaker, #1 New York Times Bestselling Author
Livestream + On-demand
How can you see dramatic improvement in your personal and professional life? The natural impulse is to attempt big steps to improve. However, taking big steps often results in failure or only temporary gains. You rarely see the permanent results you want. The key to successful change is in small habits. In this entertaining talk, James Clear focuses on the science of small habits, how they work, and how their effects compound and multiply over time. Through research and personal stories, audiences will not only be entertained but also come away with practical strategies they can immediately apply in their personal and professional lives.
Join us at ACE Academy 2021, taking place April 25-27, for an opportunity to translate the latest research, insights, and ideas into actionable strategies for your clients and prospects. Topics include the latest in BeFi research, wealth management, investment management, and retirement management.
As part of the ACE Unplugged package, which includes 10 recorded sessions from the Institute's annual event, enjoy this session about employing better communication tactics in times of uncertainty. Choose the Main Stage option to get this session.Read More
Financial planning may be valuable for clients, but it's time-consuming to deliver as a financial advisor, which impacts everything from the price that advisors charge for a financial plan, to the breadth of clients that can be served, and the staffing and technology infrastructure to deliver financial planning advice. In this session, we explore the latest Kitces Research study on "How Financial Advisors Really Do Financial Planning", to understand how long it really takes to create and deliver a financial plan, where time-savings opportunities are (or are not), the role of staff support in scaling financial advice, how technology impacts planning efficiencies, and the interaction between planning expertise, experience, and niche specializations, in making the delivery of financial planning more efficient.
The value of professional financial advice has evolved from portfolios to people. In today’s health and financial crisis, the ability to add value is needed more than ever. These recorded sessions feature concepts aimed to help you foster trust, cultivate long-term relationships, and build a sustainable, successful practice.Learn More
Listen to Omar Aguilar, Senior Vice President and Chief Investment Officer, Equities and Multi-asset Strategies behavioral finance, Charles Schwab Investment Management, as he talks about the latest BeFi research.Listen Now
Noel Pacarro Brown, CIMA®, CPWA®, First Vice President at Morgan Stanley, talks about leading and learning through uncertain times. Her best practices including client communication, alignment, and more.Listen Now
Larry Siegel, author of Fewer, Richer, Greener: Prospects for Humanity in an Age of Abundance, discusses the future outlook of the world. In his view, based on UN future-casting, he predicts a world with a smaller population starting in 2070, and resulting in more wealth and environmental advancements.Listen Now
Don Trone, L5, Co-Founder & CEO of 3ethos; Director of Behavioral Governance Society, dives into these different roles. He discusses the interrelationship between five qualities: resilience, sense of purpose, core values, passion, and process.Listen Now
ABSOLUTE SUCCESS IS LUCK. RELATIVE SUCCESS IS HARD WORK
From ACE Academy 2021 opening keynote speaker, James Clear, learn why absolute success is luck and how relative success is hard work.Read More
Today’s advisor needs to be well-versed in ways biases can impact their clients and create portfolios that fall in line with what is known about behavioral economics. This blog explores the top tips for portfolio construction.Read More
Even though groups are often derided as being the quickest route to stalemate and inaction, we keep forming them to solve problems in all facets of our lives. Herman Brodie's session on group bias is recapped in this blog.Read More
This blog captures the latest takeaways from Mitigating the Impact of Advisors’ Behavioral Biases report. This report shows advisors how they can improve their portfolio construction and management processes by acknowledging their own biases and develop safeguards to prevent costly mistakes.Read More
This blog summarizes the BeFi Barometer 2020 findings. This recently released report, from the Investments & Wealth Institute and in collaboration with Charles Schwab Investment Management, Inc. and Cerulli Associates, explores the implications of behavioral biases and the impact they can have on both clients and advisors alike.Read More
Much of traditional financial theory is based on the assumptions that individuals act rationally and consider all available information in the decision-making process and that markets are efficient. This blog explores how behavioral finance challenges these assumptions and explores how individuals and markets actually behave.Read More
Article from Investments & Wealth Monitor
Investors tackle the saving and spending task with the mental tools of framing, mental accounting and self-control. They frame their money into distinct mental accounts, mainly "capital" and "income," and set self-control rules of saving and spending. Advisors can initiate conversations with their clients about giving with a warm hand but noting the obvious...
Eben Burr, Managing Director & Behavioral Finance Educator at Toews Corporation, talks about strategies for growth including training, coaching, and practical ways for applying BeFi techniques into every day processes.
WHEN IT COMES TO EMPOWERING WOMEN, WE NEED TO ASK THE RIGHT QUESTIONS
By Ann Senne, Head, Advice Solutions Group at RBC Wealth Management
It’s amazing what happens when a group of dedicated, engaged employees get together and start asking “What if?”
That’s exactly what happened more than a year ago when a group of our firm’s high-potential women, who were tapped to participate in a brand-new women’s leadership program funded by my firm, started spending regular time together.
DIVERSITY IS GOOD BUSINESS FOR ADVISORY FIRMS
From FlexShares / Northern Trust
FlexShares’ study on financial advisors’ diversity perspectives and practices identified numerous benefits for firms that position themselves for shifting demographic tides. But it also found that many firms—particularly smaller ones—may be missing the boat.
From FlexShares / Northern Trust
U.S. demographics are changing and the country is expected to be a minority/majority population by 2045. Yet the majority of financial advisors are still overwhelmingly white, male, and shrinking in numbers. With many firms having difficulty in recruiting, hiring, and retaining young and diverse talent, FlexShares conducted a research study in late 2019 to see where firms are struggling and where they are having success in building diverse teams.
From Cerulli Associates
Despite heightened attention on diversity, equity, and inclusion (DEI), women and Black, Indigenous, and People of Color (BIPOC) remain vastly underrepresented among financial advisors, according to "The Cerulli Report—U.S. Advisor Metrics 2020." The research finds that women represent 18.1 percent of total financial advisor headcount, which equates to a 2.4-percentage-point increase from 15.7 percent in 2015. Additionally, only 2.9 percent of advisors identify as Black or African American, 5.1 percent as Hispanic or Latino, and 4.3 percent as Asian.
Brought to you by CFP Board
It is imperative that the financial planning profession work toward expanding and diversifying the ranks of its professionals who can meet the needs of increasingly diverse consumers, especially as consumer demand for financial advice grows amid the pandemic. As racial inequities are being exacerbated by the pandemic and the United States is in the midst of a racial reckoning, we must ask ourselves what we can do as individuals, as
firms, and as a profession to advance a more inclusive and diverse society. Therefore, this publication serves two purposes: to showcase the work being done across the financial planning profession and to deliver scalable insights for readers to replicate.
Women in financial services represent less than 17% of the industry population. Listen in on a candid conversation among four female top performers as they discuss how to re-brand the industry, making it more attractive for women, and how they are addressing today's challenges and beyond.Learn More
LONG-TERM IMPLICATIONS OF COVID-19: WOMEN IN WEALTH PERSPECTIVES
The long-term effects of COVID-19 on the advice industry are both wide-reaching and profound. Learn how industry leaders are developing new strategies to add significant value in the face of these challenges.
The objective of the Investments & Wealth Institute Certification Scholarship Fund is to promote diversity and grow the number of certified professionals who currently are underrepresented in the profession thereby enhancing the competency and professionalism of advice delivered to the public.
Learn about the impact the scholarships have made in the first six months of the program.
Desiree Maldonado, Financial Consultant at Popular Securities, LLC, talks about advising in turbulent times. Her experiences include adjusting to working from home, understanding and adopting new technologies, and more.
Frederick Hertz, JD, attorney and mediator at the law and mediation offices of Frederick Hertz, talks about how advisors can meet the unique needs of LGBTQ clients.Listen Now
Michael Falk, CFA®, CRC, partner at Focus Consulting Group, discusses creating and maintaining client connections virtually. The work hasn't changed, Falk explains, the connection point has.Listen Now
Kate Healy, Managing Director, Generation Next, TD Ameritrade Institutional, dives into how to be more visible in the financial industry —a Women in Wealth Perspective. Her insights include encouraging women in the industry to talk about what they do to their friends, community, local schools, and more.Listen Now
Articles, White Papers and Blogs
DRIVING DIVERSITY IN THE BOARDROOM
From RBC Wealth Management
As countries, companies and investors around the world look ahead to the New Year, they do so with a near-universal desire to close the door on 2020 and never look back.
It was a year marked by a global pandemic and a public reckoning with systemic racism that sparked protests and riots in cities across the world. It was a year in which women in the U.S. lost a decade of economic gains because of the pandemic's disproportionate impact on the industries in which they work or own businesses.
AS WOMEN AGE WITH LONGEVITY ON THEIR SIDE, THE FINANCIAL FUTURE IS FEMALE
From RBC Wealth Management
It won’t be Millennial CEOs or Gen Z entrepreneurs who wield the most financial power in the coming decades—it will be the wave of Baby Boomer women.
Nearly 100 million Americans will be 65 and older by 2060, and more of them will be women as they live five years longer than their partners on average, and continue to age into their 80s and 90s.
WOMEN'S FINANCIAL CONFIDENCE 100 YEARS AFTER THE RIGHT TO VOTE
From RBC Wealth Management
2020 marks the 100th anniversary of the 19th amendment, the landmark change to the U.S. Constitution that granted women the right to vote. The amendment was the result of tireless activism by women like Elizabeth Cady Stanton, Lucretia Mott and Susan B. Anthony – names now synonymous with the women’s rights movement.
But the passage of the amendment holds more than just political importance; it was a moment that has rippled outwards over the past 100 years, allowing successive generations of women to obtain more education, fight for higher wages, accumulate greater personal wealth and move closer to equality.Read More
An unprecedented amount of assets will shift into the hands of U.S. women over the next three to five years, representing a $30-trillion opportunity by the end of the decade,” according to McKinsey’s North American Wealth & Asset Management practice’s new report “Women as the Next Wave of Growth in US Wealth Management.” The research is based on a survey of 10,000 affluent investors (with investible assets of $100,000 to $5 million), including nearly 3,000 female decision-makers.Read More
The financial services industry, particularly in jobs that work directly with individuals, is mostly white, data from the Bureau of Labor Statistics show.
Numerous barriers keep candidates of different backgrounds outside of the industry, experts said. It starts young, when people are choosing their career paths in high school and college, but there are also challenges in hiring, retaining, and promoting people of color.Read More
Although 32% of the U.S. population is Black or Latino, only 3.5% of certified financial planners are. As the study report states, “the U.S. population is rapidly becoming more diverse, but the advisory industry remains very homogeneous.”Read More
DEFINING THE FUTURE OF WEALTH MANAGEMENT
The wealth management profession is transforming at a rapid pace because of many factors. Regulations, competition from new business models, and advances in technology are driving the way we do business and expeditiously changing the delivery of advice to meet client expectations.
A lack of financial inclusion for Black Americans exists at every level of the financial system. Understanding the sources of exclusion is the first step to fixing the system.
Actionable steps on how advisors can start bridging the culture and money gap. Because as Rianka R. Dorsainvil, CFP® writes for Morningstar.com, "cultural competency has major implications for business."
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