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1. A Crisis Is Coming: Who Is Swimming Naked?
We recently wrote The Lag Effect Unveiled to appreciate why it takes time for higher interest rates to inflict economic damage. We follow that up with a discussion of something equally worrying that also lags Fed rate hikes. A financial crisis will likely follow the Fed’s “higher for longer” interest rate campaign. We are not clairvoyant in predicting a crisis; however, we do appreciate financial history. — Michael Lebowitz
2. Advisor Compensation: Transparency, Conflicts, Relationships, and Future of the Industry
There are far-reaching implications on the growing discussions over financial firm compensation structures. The tug and pull from commission-based to various fee-only and hybrid combination models are working to address client perceptions of the industry, strengthening advisor value propositions, and driving more differentiated and competitive business models. They are also increasingly driving existential advisor introspection on what they truly represent for their clients and key decisions being made about the future of this industry. — Bill Hortz
3. Compound Market Returns Are a Myth?
“Compound market returns.” During bullish markets, there is inevitably a regurgitation of this myth that was contrived to extract capital from retail investors and place it in the hands of Wall Street. However, the compound market returns myth was contrived from the myth that “markets always go up,” therefore, it is ALWAYS a good time to invest. How often have you seen the following chart presented by an advisor suggesting if you had invested 120 years ago, you would have obtained a 10% annualized return? — Lance Roberts
4. Maybe the Client Is the Problem
What you think is the problem is not always actually the problem. Sometimes the person is the problem. Sometimes, maybe, the client is the problem rather than you. Before talking about clients though allow me to use a non-client example. Picture the scene: a partner in a practice is telling me about the problems with a particular staff member…a fair bit of chat about how they are not doing what the partner feels should be done, and taking far too long to do the things they do actually get done, and more often than not doing “god knows what” with their day. “What should I do about (him/her)?”, he asked. — Tony Vidler
5. Reflect on Your Future Self So You Can Plan For It
Recently, I took part in an exercise that was the antithesis of vanity (or maybe the antithesis of Instagram, take your choice.) I took my most recent headshot, uploaded it into a free app called Aging Booth and let it have its way with me – layering on wrinkles, graying the hair I work hard to keep a very natural brown, doing unthinkable things to my neck – to transform how I may appear 30 years in the future. — Jean Chatzky
6. “If I Could Only Buy One Stock for the Next 5 Years…”
Today marks the official five-year anniversary of one of my earliest RiskHedge Reports. In my September 13, 2018 essay, titled, “If I Could Only Buy One Stock for the Next 5 Years…,” I laid out why Nvidia (NVDA) was my #1 pick. Of course, I couldn’t envision the extent at which AI has taken off since then... ChatGPT’s launch... or NVDA’s epic rally this year alone (readers who acted on my original guidance in 2018 are up 562%, split-adjusted)... — Stephen McBride
7. RIAs Are Reinventing the Industry. It’s Your Turn.
While certain channels are expected to lose market share over the next decade, we’re prepared to see a rise in the number of RIA firms. — Schwab Advisor Services
8. Top 10 Questions High Net Worth Individuals Ask About Social Security
Social Security, the program you may have spent a lifetime paying into, is designed to offer stability, supplemental income, and other valuable benefits that can play a role in your overall financial strategy after you retire. We've pulled together answers to 10 questions our clients ask most frequently regarding Social Security. If you are nearing retirement, this Q&A is designed to help you better understand what to expect from Social Security. — Brett Ramsay
9. 6 Events That Require a Valuation of Your Financial Practice
Most experienced business owners understand valuations as an essential tool to assist in making critical decisions for their advisory practice. Unfortunately, many advisors will invest time and effort in getting their practice appraised, only to find out that the underlying analysis is irrelevant to the specific purpose of the valuation. — David Grau, Jr.
10. Why It Makes Sense to Shift From Cash to Bonds
Many strategists and experts have been wrong about rates, both fed funds and U.S. Treasury yields. This is why it’s important to be well diversified in fixed income — with so many different potential outcomes, a portfolio positioned seeking one specific outcome could be costly if that bet is wrong. For example, selling credit in 2022 to buy long duration has cost some investors hundreds of basis points. — Adam Schrier
11. How Are Client Expectations Evolving? Here’s the Latest Research.
The foundation of a great client experience is delivering on the core expectations and preferences of each prospect and client. And while that gets you to satisfaction rather than engagement, it’s clearly a good place to start. But it’s easy to forget that those core expectations evolve over time. We assume that because clients are satisfied, we’re doing the right things. And while that may be true at a point in time, we need to test those assumptions on a regular basis. — Julie Littlechild