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Written by Schwab Trading Services in 2016 with a couple of edits by Ian Schaff for 2018 Full Count: How Pitchers & Traders Are Alike Baseball season is April 1st to the beginning of October 1st. So what does the guy on the mound have in common with the person in front of the trading screen? A lot, actually. Baseball season when it is in full swing, with it continues the ever-changing debate of dominance. Which team is best? And what is it that makes a team so great—an amazing slugger lineup, or a bullpen filled with pitchers who throw serious heat? The slugger rounds out the offense, bringing in runs and driving up the scoreboard. But it’s the pitcher ...
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Please be aware ... (1) The U.S. Department of Labor's rules have only been  partially  delayed (now, until July 2019). (2) While changes to the rules are expected before they are fully put into effect, including new or modified "streamlined" exemptions, the "impartial conduct standards" contained in the DOL's various rules are broadly applicable  right   now . [NOTE, however, that level fee advisers and ongoing management of IRA accounts are treated differentl. Interestingly, level-fee advisers, as defined by the DOL B.I.C.E., are not bound by the impartial conduct standards for the ongoing management of IRA accounts. They are only governed by ...
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I have a client whose 2 sons (ages 2 and 4) are set to inherit around $4M each in two years.  The parents only concern is what is best for the kids long term.  They just met with and estate planning attorney who is encouraging them to put the money into a custodial account where a judge will oversee all transactions. The attorney says this is the only way the kids will not have full access to the money at the age of majority (a major concern to my clients). I agree that turning over this kind of money to a 21 year old is a scary proposition, but involving lawyers and the court to oversee these accounts for the next 2 decades sounds expensive and cumbersome. I ...
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Hello everyone, I thought I would send out a short memo on three slides that have had an enormous impact on my understanding of markets and key investment principles.  We know that our clients and individual investors are quickly becoming more cost sensitive, tech savvy, and have gained significantly higher levels of information pertaining to their portfolios.  Nevertheless, given all of these advancements, the average investor has still only achieved an annualized return of 2.3% from 1997-2016- slightly outperforming inflation by 20 bps. in the same period (source below 1 ).  One of our main goals as an investment department has always been focused on educating ...
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This post originally appeared on my blog, www.scholarfp.blogspot.com. I have updated it to reflect recent discussions and events. Two weeks have now passed since the DOL's fiduciary rules (i.e., its "Conflict of Interest Rule" and related prohibited transaction class exemptions) have been partially implemented. And the world of financial services continues to evolve. Over the past few weeks I've had a number of thoughts about the rule: 1. Who do you represent? It seems to me that most of the problems exist when a person tries to wear two hats. In the end, you either represent the manufacturer of a product well (in an arms-length relationship, ...
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We have spent years working with hundreds of advisory businesses and talking to thousands more. It is time to share the honest truth. The fee-only independent advisory industry is changing rapidly with consolidation and closure of firms due to a lack of sustainability. This is occurring because most advisor owners don’t have the passion, experience, or interest in being a CEO. Fact: Advisor owners have not evolved into CEOs and most don’t want to be the CEO of their business. To be fair, advisors were never trained to be CEOs. Most advisors never went to MBA classes or had a CEO mentor that shared the knowledge of what it takes to run and grow ...
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I finally found them!! Priority cards I used when I started as a financial planner at the age of 23. Priority Cards Why did I spend 3 weeks digging through everything in my office to find these cards? We watch advisory firm owners struggle to train younger staff and we take it for granted that it comes naturally to us. So while we are not staffing experts, we are operations experts and have worked, managed, hired more than a few millenials, Gen X, and boomers in our lifetime. And we know that if you invest in staff training, the rewards are priceless. The more your staff can do, with passion and purpose, the less you need to do or manage. The more your ...
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Accomplishing your business goals just got a lot easier. Why are some financial advisors able to achieve so much in one year while others work hard but never see the growth they want? Successful advisors will tell you that its the deliberate and consistent time they put into strategically planning their year before it happens. They all agree that the time they invest at the end of each year to planning their goals for the upcoming year is the single greatest return on investment they can make. If youre like me, then you have a continual desire to grow and expand your business. You know its important to set goals but youre pretty sure ...
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The Advantages of the FPA Association Group Long-Term Disability Insurance Plan by John Ryan, CFP (r) There are basically two types of disability income insurance, those plans that are issued on an individual basis and those issued on a group basis. Usually those plans issued on an individual basis require full medical underwriting and are the most expensive. The upside is that certain aspects of that coverage are superior to group plans. In contrast, plans issued on a group basis require little to no underwriting and cost less than individual policies. This is largely the result of lower costs of the insurer to acquire the risk (lower commission ...
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I am a newly credentialed CFP® After the arduous process of completing all the required study, experience and ethics requirements. I FINALLY did it. I earned the right to use the marks. And now an brave new world awaits me. Energized by the successful culmination of my efforts, I embarked on my search in earnest. I joined FPA, thought carefully about my goals and scoured the web for a firm to associate myself with next. A complicated and thrilling search. You see now I work for a large institution that does not have the capacity to engage in complex financial planning, so I see that while the corporation has been good to me it is time for a new home for ...
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Think you don’t need disability coverage? Think again. We all want to leave this world with our financial affairs in good order. So we draft a will and an estate plan and purchase life insurance. But few of us consider disability insurance – the coverage that can help us maintain our income and quality of life while we are alive. And even fewer planners or advisors offer the chance to help you mitigate the risk. Statistics show that people in their 30s are three times more likely to suffer a long-term disability than they are to die. The non-profit Council for Disability Awareness notes that the average individual disability claim duration is 31.6 months, ...
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Our firm understands that advisement of a client’s portfolio is an integral part of their financial life plan, however it is not the only element that contributes to meeting a client’s goals and aspirations. At Suncoast Advisory Group nothing inspires us more than helping clients turn someday dreams into reality today. In order to accomplish our mission, we need to understand our clients before the numbers through their values and ideal vision to assist in improving their sense of fulfillment and quality of life. Over the past decade there has been a tremendous shift in the way financial advisors have been compensated for their ...
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Today I met with nine veterans and their families from Homes for Our Troops to discuss how we will help them plan for their future and the future in the new homes. It is terrific to know that so many donors are helping build brand new, first class homes that are fully handi-capped equipped for the young (and some not so young) veterans. They are almost all missing a leg; sometimes two; need wheel-chair accessibility, have PTSD and Traumatic Brain Injury. But they all are positive, grateful, hopeful and looking forward. Our planners do a terrific job of getting them prepared. A few months ago I met a couple at a fund-raiser and discussed their FP experience. ...
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In 2016, the ACA expands the small group insurance market to include employers with 100 or fewer FTEs • Historically, market rules have generally defined small groups as 2 to 50 eligible employees • Newly “small” groups will face: • More restrictive rating rules, which may increase premiums for some (or reduce for others) • Additional benefit requirements that could reduce benefit flexibility and increase premiums • Adverse selection in the market if more employers self-insure • ACA’s Guaranteed Renewability rules may allow newly “small” ...
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There are plenty of stories about the challenges of moving on from a business when it’s time to leave, but there are also more positive stories about proven paths for successful business exits. One such example is that of Arbor Investments LLC in Michigan after the sale of 208 Arbor Drug Stores in 1998. The goal of the founder, Eugene Applebaum, was to generate enough wealth to expand philanthropy efforts. As part of this path, he opened up a family office and trained his two daughters to be the agents of change that would put his goals into action. He trained them to think and then execute in 15 year cycles, including actions like disengaging from ...
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Unfortunately, when it comes to fraud, there is a perfect storm targeting senior citizens. Many of the scammers who target this population are extremely crafty and have compelling stories and displays to make it look as if their operation is legitimate. Steering clear of these situations can be difficult; read on to learn more. As a result of longer living and the risk of cognitive decline, there are challenges facing the elderly population when it comes to fraud schemes. One major concern has to do with financial abuse, which is frequently underreported. There is a large gray area associated with inheritance versus abuse, meaning that very few cases ...
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To all, The CFP work experience accepts two years of being an apprentice under a certified financial planner as acceptable work experience. Can anyone offer any guidance or reccomdations on how I would be able to apply for or get involved in such a program? I don't have any experience in the financial industry. The will be the most challenging component for me in meeting all the prerequisites for the CFP designation. I am located in the Fresno, CA area.
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The Supreme Court’s recent decision has already had a big impact around the country, and it certainly influences the legal rights of same-sex couples with regard to taxes and spousal benefits. There are several different ways that this influences current planning. If you are planning to get married in light of the recent ruling, read on to learn about some of these critical impacts. The first factor has to do with healthcare. The spouse will now have priority in healthcare decision, a legal sticking point in the past. The spouse could also have a say in guardianship situations. Taxes are another way that couples may wish to evaluate their current decisions, ...
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For many years, company owners have used LLCs and limited partnerships to pass on businesses to their heirs. Passing on these business interests might also be accompanied with a transfer of marketable securities wherein the partnership keeps control but the gift overall reduces assets and therefore the tax burden. This practice is now under scrutiny from the IRS because securities can be appraised and receive a discount, which reduces the amount of the gift and the tax associated with the transaction. This gifting methodology, which allows for those who have exceeded the single or couple lifetime gift exemptions, has been used by wealthy individuals for ...
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Asset protection is a term that is thrown around quite a lot in planning circles, and depending on who you talk to, the definition in use could be different. In general, however, there are two stages to asset protection. In the first stage, you evaluate all of the possible scenarios under which risks may expose an individual or a business to financial jeopardy. These risks can come from multiple different directions, but all of them can be very damaging. A divorce or an argument within a partnership can both be frustrating and unfortunate, but they can generate vastly different outcomes. Although it’s not always easy to plan for these situations, it’s ...
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