Author Archives: adaniels

There are tax changes expected in Washington, D.C. in the near future, and many investors are concerned about it, says a new survey. Yet most of them are not planning to talk to their financial advisors about it, which could be a missed opportunity.

Financial Advisor Magazine writes on a report by Nationwide Financial. According to the survey, 63 percent of high-net-worth investors are concerned about what is going on in Washington over taxes, yet most of them are not thinking about talking to their financial advisors about it. Nor do the investors think that they can do anything about the shenanigans in Washington.

In addition, according to this survey, which talked to 751 investors who had $250,000 or more a year of annual income, 56 percent think that their tax rates will be raised.

Eric Henderson of Nationwide said that “there is a huge opportunity for advisors to proactively engage clients in a discussion about how tax code changes may impact their portfolio.” He suggested that advisors who are proactive on this issue can build trust with their clients and foster long-term relationships. 

Written by Lisa Swan


A new survey reveals that millionaire men and women have very different opinions when it comes to getting financial advice. Financial Advisor Magazine writes about Fidelity Investments 2012 Millionaire Outlook Study, which shows how each gender deals with financial advisors.

According to the study, women take less risks, and are more focused on “holistic planning,” the article says. On the other hand, men are more focused on the return on investment. Men are almost twice as likely as women to be concerned about investment returns.

In addition, women are more likely to rely on financial advisors than men, according to the survey. They are also tied to specific advisors more than men. The study, which spoke with 1,520 people, including millionaire investors, showed that 45 percent of women would move firm to follow their financial advisor if the person went elsewhere, while only 23 per cent of men would do so.

Alexandra Taussig of National Financial, a Fidelity company said that “based on these findings, it is important for financial advisors to recognize that women may be looking for different investment strategies or have a different set of financial concerns that deserve consideration.”

Written by Lisa Swan


Republicans and Democrats have been squabbling over what to do about the fiscal cliff, and how to deal with the nation’s finances. Whether there should be higher taxes, or reduced spending, or both, is an issue. So what does this mean for investors and financial advisors? takes a look at the issue.

There is the likelihood that capital gains taxes may be increased, as well as an increase in dividend taxes. Without a deal, capital gains taxes will go up to 20%, and dividend taxes will be treated like regular income. With a deal, the taxes still could go up. In addition, a 3.8% Medicare surcharge will also be included.

According to a survey by the Financial Services Institute, financial advisors are confident that a deal would be made to resolve the fiscal cliff issue. Seventy-nine percent say that they think a fiscal cliff deal will be made by the end of the year.

In addition, 70% of the advisors say that they opposed raising taxes on the rich, and 68% say that higher taxes would cause fewer people to invest or to save.

Written by Lisa Swan


A new survey seems to suggest that younger investors are more comfortable with risk.  reports that the risk level of younger investors in mutual funds is now higher than the level seen before the financial crisis in 2008.

The Investment Company Institute surveyed four thousand households in May and discovered that 39% investors under 35 were able to tolerate “above-average or substantial financial risk” in order to get the returns they want. This is up from 31% in the previous two years and is even a little higher than the 37% level in May of 2008, just before the recession.

On the other hand, the risk tolerance of those 65 and older is much lower – 13% as of May 2012, which is similar to the 14% number in May 2008.

“Willingness to take financial risk is strongly affected by age, but has also varied over time within age groups,” said Sarah Holden, who is the organization’s Senior Director of Retirement and Investor Research. She said that “between 2011 and 2012, the willingness to take investment risk among all but the youngest shareholder group fell or remained about the same, while the youngest age group’s risk tolerance increased.”

According to the survey, 53.8 million American households own mutual funds. That adds up to 44.4% of all U.S. households.

Written by Lisa Swan


According to a new survey, millionaires are very comfortable with using financial advisors, and appreciate what they do.  The Millionaire’s Corner says that millionaires understand the role financial advisors play.

The most important benefit of hiring a financial advisor, according to 3/4 of the millionaires surveyed, is that the advisor “improves my knowledge of investing.”

 The second most-important benefit of a financial advisor, according to over 2/3 of the millionaires, is that the financial advisor “provides me with a wider range of investment opportunities.” And 2/3 of the millionaires surveyed said that the connection with the financial advisor “improves my investment returns,” with 57% saying that dealing with a financial advisor “gives me peace of mind.”

The millionaires surveyed found very little drawbacks to working with a financial advisor, with “higher fees” being the thing 54% cited. Yet a majority of millionaires said they were comfortable with what they paid their financial advisor, and the bigger the net worth of the millionaire, the more comfortable they were.

Written by Lisa Swan


As a financial advisor’s team grows, he or she may make mistakes that

could impede that growth. Financial Planning has some tips to avoid

these mistakes:

1.      Putting individual people ahead of the process: It is important to

have a process in place where the team can thrive, not just one or two

people. And the best leaders make managing people and planning for the

system a priority.

2.      Putting getting along over getting things done:  The article says

that “effective leaders understand that harmony doesn’t create

success, success creates harmony.” Focus on good methods to grow the

business, and the rest will take care of itself.

3.      Not enough time focused on working on your business:  It also isn’t

enough to simply get things done. You should focus on building the

business, which means time spent on managing people.

4.      Failure to not clearly explain people’s roles: Your staff should

know what they are responsible for, and what other people should


5.      No metrics to track performance: How can you know how your staff is doing if you do not track their numbers, or give them goals to  achieve?


By following these standards, financial advisory teams could achieve

greater success.

Written by Lisa Swan


Your clients are probably very concerned about the implications of the fiscal cliff issue, and what it means for them. Here are six tips on how to deal with it, courtesy of


  1. Let them know that we could be facing financial volatility:  Nobody knows what it all means, which could mean some real financial uncertainty ahead.
  2. Reduce the risk in their portfolios: Now is a time to play it a little safe.
  3. Put in “staged buying”: Look for good opportunities to get into the market that your clients will like.
  4. Focus on cash flow: Put money in stocks that may see a big increase in dividends.
  5. Think about dollar-cost averaging: This could mean that more shares will be purchased during times when prices are very low, which could lower these numbers.
  6. Make sure clients have liquid assets: Your customers need to have enough money to get through the next 18 months without having to sell anything.

Written by Lisa Swan


Around 85 or so high-flyers at Goldman Sachs could be getting a phone call that could change their lives, Here Is the City reports. On Wednesday Goldman chair Lloyd Blankfein will call them with this short but sweet message: “Congratulations, you’ve become a partner.”

It’s not like these staffers get to apply for the position, the article notes. There is no job interview process, nor is there a job listing for these coveted roles. Instead, the higher-ups have been secretly meeting for months to determine who gets to be partner. There is a process called “cross-ruffing” involved, in which Goldman Sachs executives talk to other employees about the people being considered for partner, but never the would-be partners themselves.

Here Is the City says that becoming a Goldman Sachs partner brings “prestige that is, arguably, unrivalled in the financial world,” It also means “vast wealth” thanks to the huge bonuses that go along with the job, which could net them millions per year. It can be a real golden ticket for those picked.

Those who become partners at Goldman Sachs also can move onward and upward. Ex-U.S. Treasury secretary Hank Paulson was once a Goldman partner, as was Gavyn Davies, former chairman of the BBC.

Written by Lisa Swan


It’s going to be a lame-duck Congressional session to remember, thanks to the fiscal cliff. says that when members of Congress return to town this week, they have a lot on their plate, such as the fiscal cliff issue looming, and the Bush tax cuts expiring.

Andrew Friedman, who works for Washington Update, a company that does policy analysis, says he expects to see some big volatility in the stock market over the next few months. “I think we’re going to see a lot of money in motion in the next couple months,” he recently told reporters.

Friedman also said that the U.S. elections last week put us “right back where started,” with the Democrats keeping the presidency and the Senate, and Republicans keeping the House. He said that there will need to be “consensus” between the two parties to get anything done.

And there is a lot to be done this year.  Friedman called the next two months “the mother of all lame-duck sessions,” with the fiscal cliff issue taking up most of Congress’ schedule for the session.

Written by Lisa Swan


In an effort to help business victims of Hurricane Sandy, the Financial Industry Regulatory Authority altered some of their rules. reports that FINRA has relaxed some mandatory requirements for financial advisors.

The publication says that “rules were altered on Thursday regarding office relocations, deadlines for regulatory filings, such as U4 forms, deadlines for continuing education, and new member applications.” FINRA is also giving time extensions for those who were afflicted by the superstorm.

The agency said that it “recognizes that members need relief from many regulatory requirements as a result of the dislocation caused by Hurricane Sandy.”  In addition, it has encouraged financial advisors to let displaced advisors work with them temporarily. FINRA also said that financial firms should put a notice on their websites for customers to let them know who they should contact regarding their accounts.

FINRA itself faced issues due to Hurricane Sandy. It has been unable to access its New York office membership office. It advised new members to contact them regarding the status of their paperwork.

Written by Lisa Swan