LPL Financial launches advisor business communities

LPL Financial says it wants to be “the most inclusive place for all advisors to do business.”

The nation’s largest independent broker-dealer is looking to its black, Latino, Asian-American and LGTBQ representatives to help guide it towards that goal, by creating so-called advisor business communities to meet at least once a year with senior management. LPL also held a session last week with advisors, home-office staff and product sponsors to discuss resources for tapping into underserved markets.

In late January, a panel of executives from other IBDs outlined their multi-front efforts aimed at more clients and advisors of all backgrounds. LPL followed other firms who have launched — or, in some cases, restarted — diversity programs and committees by unveiling its new Advisor Inclusion Council in September.

Only 23% of CFPs are women and just 3.5% are black or Hispanic, according to the CFP Board, which has challenged to the industry to serve and recruit from a wider base. People of color “have consistently acquired wealth that has been overlooked by the financial services sector, which has resulted in lost business opportunities,” according to a study last fall by the board’s Center for Financial Planning.

LPL African-American Advisor Business Community

LPL Financial held its first African-American Advisor Business Community at its Fort Mill, South Carolina-based office, with senior executives like Head of Business Development Rich Steinmeier (at right in back row) gathering input from advisors.

Many advisors surveyed in the study said mentoring was most likely to make a difference — and LPL’s approach could help advisors advance that way, says Marilyn Mohrman-Gillis, the Center’s executive director. Firms need to be more transparent with their demographic data, though, she says.

Advisors like Marci Bair are helping inform LPL on how best to gather more data on the makeup of its advisor force — and crafting better messaging for approaching diverse communities that addresses their difficulties navigating the industry. They’re also building the business case behind it.

“If you are a growing practice, then you want and need more clients,” says Bair of San Diego-based Bair Financial Planning. “It’s imperative that you as an advisor serve the clients, the communities that are around you — and those demographics are changing. Your practice should reflect those in your community.”

New day at LPL? 20 advisors describe changes under Dan Arnold

Tobias Salinger | Lists

She and other LGBTQ advisors and allies attended an event with LPL executives called “LGBT Investors Day” last week in Vancouver, Washington. The group discussed how to ensure prospective clients know the firm aims to communicate with them openly, says Bair, who is a lesbian.

A week earlier, eight black advisors met with home-office staff and executives for the first meeting of LPL’s African-American Advisor Business Community. The firm plans to launch Asian-American and Hispanic committees later this year, alongside several existing employee resource groups for advisors.

Stanley Funches, LPL Financial

LPL advisor Stanley Funches leads Birmingham, Alabama-based Intelus Wealth Management.

Advisor Stanley Funches of Intelus Wealth Management doesn’t know how many black LPL advisors there are, but advisors and the firm know there aren’t enough, he says. LPL has an opportunity to dispel myths about “people who have historically been disenfranchised financially,” he says.

For Funches, who is black, the misconceptions start with the view that the African-American community has no capital to invest and that focus should only be on a prospective client’s investible assets rather than all components of net worth. He also hopes LPL can help more black advisors sustain their practices through the difficult first three to five years of launching their businesses.

“If firms aren’t showing a path for a new advisor or someone new to the industry to come into the profession, showing them a path where it’s economically feasible for them to do it, I think it’s going to be difficult to increase those numbers,” says Funches, who is based in Birmingham, Alabama and attended the committee’s meeting at LPL’s corporate office in Fort Mill, South Carolina.

“Until that happens,” he adds, “we can have all the stats we want, we can give all the scholarships we want, and I don’t know if that will change.”

LPL’s CEO Dan Arnold and Rich Steinmeier, head of business development, also joined the group at the first meeting. The advisors connected with each other and spoke with senior executives in what LPL called a “strategic conversation” about their community and underserved markets.

Laura LaTourette is the founder of North Georgia Wealth Management Group in Dahlonega, Georgia.

“LPL is enhancing its efforts to be the most inclusive place for all advisors to do business,” Lauren Taylor, as assistant vice president for advisor diversity inclusion, said in an emailed statement. “By creating opportunities to directly engage with advisors, we are able to pair advisors’ business challenges and needs with solutions, as well as create new solutions where there are gaps.”

Advisors at LPL can now self-identify their ethnicity and military status. The firm expects to have more complete information on diversity later this year, according to Taylor. The CFP Board’s center would like to learn more about LPL’s plans as it tracks the industry’s efforts, Mohrman-Gillis says.

Case studies and best practices will form part of a focus towards what Mohrman-Gillis calls “accountability” at the center’s second annual summit on diversity next fall. She praises LPL for embracing mentorship but says firms should follow the CFP Board’s example in releasing data about their demographics.

“Even though it is sobering, and in my view unacceptable, what it does is allows us to then define metrics, create goals and then work to achieve those goals in an open and transparent way. I think that’s really important if we’re going to make progress,” Mohrman-Gillis says. “The idea of being transparent and challenging yourself in a public way is a measure of accountability.”

LGBTQ advisors have been discussing how best to gather data on sexual orientation and gender identification, according to advisor Laura LaTourette, who is a lesbian and a member of the firm’s advisor inclusion council. The phrasing and execution of such questions make the process complex.

Marci Bair, LPL Financial

Marci Bair of San Diego-based Bair Financial Planning met with LPL executives last week for a session about reaching more LGBTQ investors.

Customizable marketing brochures aimed at the LGBTQ community, along with educational resources for advisors on the proper use of gender pronouns and generational differences in prospective LGBTQ clients will also enable them to bring in more clients, she says.

LaTourette says her view of LPL changed after she was approached by board Chairman Jim Putnam, who pledged 100% support following a panel she sat on at LPL’s Focus conference last year. The founder of North Georgia Wealth Management Group says LPL had begun to feel “top heavy” over her 15-year tenure.

“I all of a sudden drank the Kool-Aid and I’m not a Kool-Aid drinker. I drink bourbon on the rocks,” LaTourette said. “If you give us a couple years, I think we will really look different. I truly believe that.”

Bair hopes connections between advisors and home-office resources will help offer more aid to those who may feel isolated or want to increase their business in underserved communities, she says. For example, LGBT clients are strongly attracted to socially responsible investing tools, she says.

“Any marketing needs to be authentic,” Bair says. “We’re very savvy and aware of companies that are just coming in to grab a dollar and not really support the community. It takes forethought, it takes a concentrated effort.”


Tobias Salinger

Ortec Finance Launches Goal-based Financial Planning Solution on Salesforce AppExchange

Rotterdam, Netherlands, Feb. 19, 2019 /PRNewswire/ — Today Ortec Finance, a market-leading provider of quantitative modeling software for the global wealth management sector, has launched its goal-based financial planning software – OPAL — on Salesforce AppExchange, the world’s leading enterprise cloud marketplace. With this solution, Ortec Finance will deliver institutional-grade wealth management capabilities and assisted robo-advice in wealth planning with involvement of a relationship manager. OPAL integrates with Salesforce Sales Cloud and Financial Services Cloud (FSC), providing relationship managers not just a single view of their customers but also the ability to understand their personal life goals.

Natively integrated with the Salesforce Platform and FSC, OPAL is currently available on AppExchange.

OPAL – Goal-based Financial Planning solution

Established in 1981, Ortec Finance has become a specialist in goal-based wealth planning and financial planning solutions that can be tailored for individual markets. The firm’s OPAL is a leading software solution for financial institutions globally, providing goal-based financial planning models that enable people to manage the complexity of investment decision making.

Sander Daniels, Regional VP for FS EMEA, commented, “Every client has different goals. One person might be saving for a dream home, another is planning to send their child to university while a third wants to open a small business. Unless an advisor has a pulse on their needs, they won’t be successful. The problem is that many advisors lack the ability to track these client goals and provide the proactive and personalized advice needed to grow the relationship.”

Globally, OPAL is a leading solution  in jurisdictions where regulation such as the Retail Distribution Review and MiFID II has had a significant impact on the wealth management sector. By leveraging the company’s institutional investment risk management expertise of using top-notch calculations as the core of the solution, OPAL enables financial institutions to translate personal goals of their clients into an optimal financial plan and monitor these goals over time.

Iwan Schafthuizen, MD Business Development OPAL, said: “With this new solution, financial institutions using Salesforce can easily utilize the integrated economic wealth projections that until now have only been available in the institutional markets. We are also looking forward to further enhancing the OPAL wealth and financial planning capabilities within Salesforce AppExchange.”

The OPAL wealth projections give insight into the risk and return of investments, enabling enhanced investment decision-making and transforming the advice process into a client-centric endeavor to achieve personal financial goals with suitable investment strategies. Ortec Finance’s portfolio of clients includes ING Bank, Skandia, ABN AMRO Bank, Jyske Bank, Munnypot and Union VisualVest that use OPAL to advise their clients and monitor their financial goals.

Comments on the collaboration news

“Our vision is to unify an ecosystem of leading financial services technology partners,” says Rohit Mahna, SVP GM of Financial Services at Salesforce. “By collaborating with leading FinTech trailblazers like Ortec Finance, we’re able to extend the capabilities of our platform and put customers at the center of these new experiences.”

“We are delighted to be part of the ecosystem of the world’s leading CRM provider,” says Ton van Welie, Ortec Finance CEO. “This collaboration not only enables global reach and availability of the OPAL solution, but also gives the future opportunity to enhance OPAL with future developments like financial and retirement planning.”

About Salesforce AppExchange

Salesforce AppExchange, the world’s leading enterprise cloud marketplace, empowers companies to sell, service, market and engage in entirely new ways. With more than 5,000 solutions, 6 million customer installs and 80,000 peer reviews, it is the most comprehensive source of cloud, mobile, social, IoT, analytics and artificial intelligence technologies for businesses.   

Salesforce, AppExchange, Financial Services Cloud, Sales Cloud and others are among the trademarks of  salesforce.com, inc.

About Ortec Finance

Ortec Finance was created in 2007 through a management buyout of the company ORTEC B.V., which was founded in 1981 by four innovative students of econometrics at the Erasmus University of Rotterdam who believed that mathematical models could be used to optimize the performance of companies. More than 35 years later, this is still the core of its expertise. With a team of 260 experts in Rotterdam, Amsterdam, Hong Kong, the United Kingdom, Canada, and Switzerland, Ortec Finance serves its customers completely independently.

Ortec Finance is a leading provider of technology and solutions for risk and return management.

  • 20+ countries represented
  • 500+ customers
  • 96% retention rate
  • 3 trillion euro total assets managed by our clients

More information is available at http://www.ortecfinance.com

Media Contact
Anja Deelen
Head of Global Marketing Communications, Ortec Finance B.V.
Anja.Deelen@ortec-finance.com
+31-615120524

SOURCE Ortec Finance B.V.

Edmond Walters talks eMoney, Envestnet, Apprise

Edmond Walters’ surprise return to financial planning software puts him toe-to-toe with eMoney, the firm he founded some 15 years ago.

The partnership between Walters, Envestnet and MoneyGuidePro will bring to market a tool that helps advisors create interactive estate plans for clients — one that Walters says can meet the needs of even the most mass-affluent clients.

“It doesn’t have to be for the high-net-worth,” Walters says. “It’s about starting the conversations that bring value.”

“We’re talking to clients — and some of them are really smart people — and they have no clue what these performance reports are showing them,” says eMoney founder Edmond Walters.

Walters’ new firm is called Apprise Labs and his tool bears different names depending on the platform. It’ll be labeled MoneyLogixPro on Envestnet, which will charge advisors using the software on a subscription model basis, although the firm would not comment on the exact pricing.

The tool was created to help ask questions about life insurance policies, executors and guardianships after the death of the client. The financial planning tool breaks down client assets in one portfolio dashboard, according to a spokeswoman, and lets advisors compartmentalize cash flow through focus areas, such as retirement savings, inheritance gifts or endowment contributions. The interactive graphics help clients actually understand their performance reports, he says.

“We’re talking to clients — and some of them are really smart people — and they have no clue what these performance reports are showing them,” Walters says. “They’re not able to participate.”

In a conversation with Financial Planning, Walters discussed the growth of financial planning software, the growing independent advisory channel, and the possibility that tech giants like Amazon or Google may enter wealth management.

What are the problems with financial planning tools today?
Every tool out there is going to have to show the primary person, the secondary spouse and interactive changes in real time. It’s going to be yesterday’s news in the next couple years. You’re seeing the very large tech companies recognizing that reports need to be interactive, so that clients can be a part of the planning process. The days of the static page are long gone.

What’s holding back tech innovation?
We have to get compliance officers out of C-suite offices and back in the basement. They’re hurting our industry. There is technology out there that is being used in other industries that is being held out of wealth management because of concerns over legal and compliance issues and FINRA and the SEC. The regulation is inconveniencing the American public and the advisors to a fault. Let’s say the market went down and as a client, I can’t get to my advisor. Why can’t I live interactive video session? It’s at the expense of the consumer.

Why is the breakaway movement so popular?
That’s the future of our industry. Independent advisors fully committed to the needs of their clients, and feel they can best serve them without all the shackles. Tech is moving fast. Every 18 months, technology is completely changing. It would take a wirehouse 18 months just to upgrade its laptops. I can get a motorboat to turn around a lot faster than the Queen Mary.

Do you see further consolidation in the RIA space?
You have to get to a certain size. Ron Carson is right about that. You can’t do it as an eight-man band. You’re going to see RIAs get bigger and bigger because breakaways can’t survive without the economies of scale. They have to share infrastructure. And, you’ll see more firms offer RIA divisions that support and specialize in independent advisors. It has to be a number where it makes sense to go independent.

Where’s all the artificial intelligence?
They’re all talking about it, but they’re not going to get it until they get more data. Until you have the right amount of data, you can talk about AI and machine learning all you want. It’s a partial story. Just because you have the investment data — that’s not who the client is. If you really want to know what makes your client tick do a comprehensive plan and learn about where your client travels, how they spend money, where they have real estate. We’re several years out until you get that kind of data. You can’t get that data until you earn the clients trust by serving their needs.

What stands in the way of Amazon entering wealth management?
Amazon is the real deal. Everyone loves Amazon. We all use it for everything from packages, movie and entertainment. It would be very easy to get sucked into a platform like that to help manage your finances as well. I always thought there would be a channel on your TV where I can go to see my finances, navigate around with my remote and get updates, and at the same time, be able to video chat with financial advisors. Amazon is in the pole position. They could buy a broker-dealer in a second and be in business. They already have the brand recognition.

What’s top of mind when designing new software?
The end user is much more aware. They’re not as trusting as previous generations. It used to be you’d go to the doctor’s and undress, jump on the chair and the doctor says take two of these twice a day — and you did it. Now, people are much more savvy and understand their options. Should they get a second opinion? Technology has made it easier for consumer to participate in the decisions that affect their lives.

The financial crisis had a lot to do with that lack of trust. Clients really need to participate in their financial lives. If things go bad as a client, I don’t want to look anywhere else instead of in the mirror. A lot of clients lost trust in their advisors when things went bad. They should have lost trust in the executives.

ABB Ltd (ABB) Stake Raised by Keystone Financial Planning Inc.

Keystone Financial Planning Inc. raised its position in shares of ABB Ltd (NYSE:ABB) by 2.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 111,956 shares of the industrial products company’s stock after buying an additional 2,231 shares during the quarter. Keystone Financial Planning Inc.’s holdings in ABB were worth $2,128,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. CIBC Private Wealth Group LLC grew its stake in ABB by 1.2% during the 4th quarter. CIBC Private Wealth Group LLC now owns 78,268 shares of the industrial products company’s stock valued at $1,488,000 after purchasing an additional 916 shares during the last quarter. Regal Investment Advisors LLC acquired a new position in shares of ABB in the 4th quarter valued at about $195,000. Ballentine Partners LLC lifted its holdings in shares of ABB by 47.0% in the 4th quarter. Ballentine Partners LLC now owns 12,781 shares of the industrial products company’s stock valued at $243,000 after buying an additional 4,085 shares during the period. Beach Investment Counsel Inc. PA lifted its holdings in shares of ABB by 1,016.7% in the 4th quarter. Beach Investment Counsel Inc. PA now owns 154,100 shares of the industrial products company’s stock valued at $2,951,000 after buying an additional 140,300 shares during the period. Finally, Tdam USA Inc. raised its holdings in ABB by 5.2% in the 4th quarter. Tdam USA Inc. now owns 18,435 shares of the industrial products company’s stock worth $350,000 after purchasing an additional 910 shares during the period. 4.88% of the stock is owned by hedge funds and other institutional investors.

ABB has been the subject of a number of research analyst reports. Berenberg Bank cut ABB from a “hold” rating to a “sell” rating in a report on Monday, January 28th. Royal Bank of Canada started coverage on ABB in a research report on Tuesday, January 15th. They issued a “sector perform” rating for the company. Vertical Research lowered ABB from a “hold” rating to a “sell” rating and set a $17.00 price objective for the company. in a research report on Thursday, January 10th. Zacks Investment Research lowered ABB from a “hold” rating to a “strong sell” rating in a research report on Thursday, January 10th. Finally, Bank of America upgraded ABB from a “neutral” rating to a “buy” rating in a research report on Tuesday, January 8th. Five investment analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the stock. ABB presently has a consensus rating of “Hold” and a consensus price target of $21.84.

NYSE ABB opened at $19.82 on Monday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.86 and a current ratio of 1.18. ABB Ltd has a 52-week low of $18.05 and a 52-week high of $25.60. The stock has a market cap of $42.17 billion, a P/E ratio of 15.86, a P/E/G ratio of 2.08 and a beta of 1.06.

ILLEGAL ACTIVITY NOTICE: This piece of content was reported by Fairfield Current and is the sole property of of Fairfield Current. If you are viewing this piece of content on another site, it was copied illegally and reposted in violation of United States and international copyright law. The correct version of this piece of content can be read at https://www.fairfieldcurrent.com/news/2019/02/18/keystone-financial-planning-inc-buys-2231-shares-of-abb-ltd-abb.html.

ABB Company Profile

ABB Ltd manufactures and sells electrification, robotics and motion, industrial automation, and power grid products worldwide. Its Electrification Products segment provides modular substation packages, distribution automation products, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions.

Recommended Story: What are earnings reports?

Receive News Ratings for ABB Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for ABB and related companies with MarketBeat.com’s FREE daily email newsletter.

Why is life insurance key when planning your financial future? (FCL February 18th) – FirstCoastNews.com WTLV

We work hard to provide for ourselves and for our families and for many people life insurance can be part of a great financial security plan. 

Lockheed Martin Co. (LMT) Position Raised by Keystone Financial Planning Inc.

Keystone Financial Planning Inc. boosted its position in Lockheed Martin Co. (NYSE:LMT) by 25.7% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 4,089 shares of the aerospace company’s stock after purchasing an additional 836 shares during the period. Keystone Financial Planning Inc.’s holdings in Lockheed Martin were worth $1,071,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in Lockheed Martin by 0.9% in the third quarter. Vanguard Group Inc. now owns 21,266,343 shares of the aerospace company’s stock worth $7,357,305,000 after purchasing an additional 199,456 shares during the last quarter. Vanguard Group Inc boosted its position in Lockheed Martin by 0.9% in the third quarter. Vanguard Group Inc now owns 21,266,343 shares of the aerospace company’s stock worth $7,357,305,000 after purchasing an additional 199,456 shares during the last quarter. BlackRock Inc. boosted its position in Lockheed Martin by 0.8% in the third quarter. BlackRock Inc. now owns 17,385,055 shares of the aerospace company’s stock worth $6,014,535,000 after purchasing an additional 136,348 shares during the last quarter. Morgan Stanley boosted its position in Lockheed Martin by 3.0% in the third quarter. Morgan Stanley now owns 3,587,085 shares of the aerospace company’s stock worth $1,240,989,000 after purchasing an additional 105,749 shares during the last quarter. Finally, Capital International Investors lifted its position in shares of Lockheed Martin by 47.7% during the 3rd quarter. Capital International Investors now owns 3,465,642 shares of the aerospace company’s stock valued at $1,198,974,000 after buying an additional 1,119,631 shares in the last quarter. 85.33% of the stock is currently owned by institutional investors and hedge funds.

Shares of LMT opened at $307.23 on Monday. The company has a market cap of $86.81 billion, a P/E ratio of 17.21, a price-to-earnings-growth ratio of 2.26 and a beta of 1.02. Lockheed Martin Co. has a 12-month low of $241.18 and a 12-month high of $363.00. The company has a debt-to-equity ratio of 8.70, a quick ratio of 0.91 and a current ratio of 1.12.

Lockheed Martin (NYSE:LMT) last issued its earnings results on Tuesday, January 29th. The aerospace company reported $4.39 earnings per share (EPS) for the quarter, meeting the consensus estimate of $4.39. The company had revenue of $14.41 billion for the quarter, compared to the consensus estimate of $13.75 billion. Lockheed Martin had a return on equity of 726.78% and a net margin of 9.39%. The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter last year, the company earned ($2.25) EPS. On average, equities analysts expect that Lockheed Martin Co. will post 19.41 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Investors of record on Friday, March 1st will be paid a dividend of $2.20 per share. This represents a $8.80 annualized dividend and a yield of 2.86%. The ex-dividend date is Thursday, February 28th. Lockheed Martin’s dividend payout ratio (DPR) is presently 49.30%.

In other Lockheed Martin news, insider Michele A. Evans sold 7,690 shares of Lockheed Martin stock in a transaction that occurred on Thursday, February 7th. The stock was sold at an average price of $298.78, for a total value of $2,297,618.20. Following the sale, the insider now owns 7,690 shares of the company’s stock, valued at approximately $2,297,618.20. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Richard F. Ambrose sold 6,647 shares of Lockheed Martin stock in a transaction that occurred on Wednesday, February 6th. The stock was sold at an average price of $301.34, for a total value of $2,003,006.98. Following the completion of the sale, the executive vice president now directly owns 4,218 shares in the company, valued at approximately $1,271,052.12. The disclosure for this sale can be found here. 0.35% of the stock is currently owned by company insiders.

A number of research analysts have recently weighed in on the company. Susquehanna Bancshares assumed coverage on Lockheed Martin in a research report on Thursday, January 10th. They set a “positive” rating and a $321.00 price objective on the stock. Jefferies Financial Group reaffirmed a “hold” rating and set a $274.00 price objective on shares of Lockheed Martin in a research report on Wednesday, January 9th. Morgan Stanley cut Lockheed Martin from an “overweight” rating to an “equal weight” rating and set a $300.00 price objective on the stock. in a research report on Wednesday, January 9th. Goldman Sachs Group raised Lockheed Martin from a “neutral” rating to a “conviction-buy” rating and lifted their price objective for the company from $391.00 to $394.00 in a research report on Wednesday, October 24th. Finally, Robert W. Baird reaffirmed a “buy” rating and set a $326.00 price objective on shares of Lockheed Martin in a research report on Friday, December 21st. Eight investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. Lockheed Martin currently has a consensus rating of “Buy” and a consensus target price of $350.00.

ILLEGAL ACTIVITY WARNING: This piece of content was posted by Fairfield Current and is owned by of Fairfield Current. If you are reading this piece of content on another site, it was illegally stolen and republished in violation of United States international copyright and trademark laws. The legal version of this piece of content can be read at https://www.fairfieldcurrent.com/news/2019/02/18/lockheed-martin-co-lmt-position-raised-by-keystone-financial-planning-inc.html.

Lockheed Martin Company Profile

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.

Read More: How is the SP 500 index different from the DJIA?

Receive News Ratings for Lockheed Martin Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Lockheed Martin and related companies with MarketBeat.com’s FREE daily email newsletter.

You need expert opinion even if you do your financial planning yourself: View

“Even if you do your financial planning and management yourself, you still need to get your plan or decisions independently validated by an outside expert,” says Amit Kukreja, RIA CFP, Amit Kukreja Advisory. Take help from a financial expert to validate your financial goals, let him look at the objective actively so that he can help you achieve your goals successfully, explains Kukreja. You can manage your portfolio yourself but it is advisable to take expert opinion on the larger financial plan.

Kukreja was speaking at the ET Wealth Investment Workshop held in Delhi on the February 15. He spoke about advantages and disadvantages of DIY financial planning. Other speakers at the event included Rajeev Thakkar, CIO, PPFAS MF, Sonu Iyer, EY India and Vinay Mathews, Founder COO, P2P lending firm Faircent.com

Kukreja went on to add that despite being a financial planner himself, “when it comes to identifying his financial goals with a right focus on money and plans, he takes advice from an external expert to achieve them with success.

You should not manage your money on your own especially if fulfilment of goals is more important than managing your money. And what with there being so many investment products to choose from, selecting the right one to match your goals and your risk profile becomes tough. Given this financial landscape, Kukreja says “we end up choosing wrong products because we do not analyse the funds based on our risk tolerance capacity or on the basis of financial goals we need to fulfil. We end up creating a portfolio based on what our friends suggest or where our relatives and colleagues have invested their money.”

Kukreja lists out six important reasons why you should not DIY financial planning

When you get scared of managing your money

People may earn a lot of money but when it comes to investing, they do not understand the alpha, beta and gamma of their overall finances. They are not able to grow their money fearing that they may lose it despite making gains. So, without getting scared about managing your finances, you should make your money grow and work for you by taking the help of a financial advisor.

When you are too busy with your job

The daily humdrum of life keeps one busy – be it managing the household to work pressure — as many don’t find the time to manage their money properly and some do not get the time to do it at all. In such circumstances, it is adviced to let an expert manage your money rather than doing it yourself. If you don’t have time, it is worth paying money (fees or commission) to financial adviser so that he can manage your money properly.

When you don’t understand your money personality

Behavioural finance comes into picture when we try to understand money personality. It has been seen often that that people tend to buy a financial product when markets are doing well and exit when the going gets tough. In such a scenario, if you don’t have the nerve to hold on your investments in these difficult situations, you should not make investments by yourself.

When life is going through a transition phase

Like financial markets, life may also become volatile at times when it moves from one phase to another. There may be situations when too many things are happening in your life — you are quitting your job to start a new venture, you are buying property to earn some passive income by renting it out, your wife is leaving a job to start a new business — when too many things are happening and you don’t get the time to manage your money. In such times, too, you should take advice from a financial expert.

When you cannot keep pace with the changing landscape

In the world of finances, rules, laws and policies changes frequently. “For instance, new rules related to taxation of Long Term Capital Gains (LTCG) from equities were introduced last year and then there were many changes which took place in the real estate sector. With so many changes happening, you may not be able to keep track of all of them and make relevant changes to your investments accordingly. In such cases you should not DIY,” says Kukreja.

When you are not able to understand the big picture of your financial life

If you do not understand the big picture of your money life, do not plan your finances on your own. However, there will be a lot of reasons when you will be tempted to do it yourself but, on the other hand, there will be more logical reasons when you will think that you should not be doing it yourself. This happens because at the end of the day you know it’s your hard-earned money and you would not like to make any silly mistake losing that money you have, instead you would want to accumulate and make gains out of it at the end.

Kukreja’s financial planning advice and key take aways

  • There are lots of B to C websites which gives you generic information and help you manage your money well but, always make sure you have some human intervention present to give you specialist advice. This will help in external validation and help you in making your money grow in the real sense.

  • When you are taking help from an advisor make sure that the fee model is transparent. Whether s/he is making money by charging commission or by charging you a flat fee or an hourly consultation fee or is linked to you AUM (Asset Under Management) and not related to the commission. Do understand the fee model before making an investment.

  • There should always be a good balance between the money you are investing and the cost of managing your investments.

  • Take money decisions carefully because it is an emotional topic. The money decision you take is strongly influenced by the mistakes you may have made earlier in life. The mistakes you saw people committing around in your life or mistakes that your parents made in their life. Therefore, before making any investments, understand how your emotions or thoughts at a sublime level are impacting you.

  • There are so many external factors that you cannot possibly manage or account for all of them. What you can manage is your own behaviour. Financial advisory is more about helping investors manage their behaviour as it is about managing their investments.

  • Every individual is unique and have different financial lives and have their own set of challenges, financial goals, risk tolerance and set of problems to deal with, hence, it makes no sense in equating your life with someone else’s.

  • Lastly, investors should know that the process of management takes years to show results. It is not achieved by demonstrating something on two or three portals. Power of compounding, cost minimisation over the investment cycle, tax efficiency all play a role. Therefore, you have to be patient in growing your money when it comes to making investments towards fulfilling your long term goals.

Waller Financial Planning Group Inc. Purchases Shares of 32,344 iShares Core S&P 500 ETF (IVV)

Waller Financial Planning Group Inc. purchased a new position in shares of iShares Core SP 500 ETF (NYSEARCA:IVV) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 32,344 shares of the company’s stock, valued at approximately $8,138,000. iShares Core SP 500 ETF makes up 5.6% of Waller Financial Planning Group Inc.’s portfolio, making the stock its 5th largest position.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Gamble Jones Investment Counsel acquired a new position in shares of iShares Core SP 500 ETF in the 3rd quarter valued at $520,000. Cortland Advisers LLC acquired a new position in shares of iShares Core SP 500 ETF in the 3rd quarter valued at $15,805,000. MUFG Americas Holdings Corp boosted its holdings in shares of iShares Core SP 500 ETF by 4.8% in the 3rd quarter. MUFG Americas Holdings Corp now owns 285,731 shares of the company’s stock valued at $83,642,000 after buying an additional 13,172 shares in the last quarter. Fulton Bank N.A. boosted its holdings in shares of iShares Core SP 500 ETF by 87.6% in the 4th quarter. Fulton Bank N.A. now owns 9,119 shares of the company’s stock valued at $2,294,000 after buying an additional 4,258 shares in the last quarter. Finally, PFG Advisors boosted its holdings in shares of iShares Core SP 500 ETF by 18.1% in the 3rd quarter. PFG Advisors now owns 32,750 shares of the company’s stock valued at $9,025,000 after buying an additional 5,013 shares in the last quarter.

Shares of iShares Core SP 500 ETF stock opened at $279.16 on Friday. iShares Core SP 500 ETF has a 12-month low of $235.46 and a 12-month high of $296.69.

COPYRIGHT VIOLATION WARNING: “Waller Financial Planning Group Inc. Purchases Shares of 32,344 iShares Core SP 500 ETF (IVV)” was originally published by Fairfield Current and is owned by of Fairfield Current. If you are accessing this story on another domain, it was stolen and republished in violation of United States international copyright trademark laws. The correct version of this story can be accessed at https://www.fairfieldcurrent.com/news/2019/02/17/waller-financial-planning-group-inc-purchases-shares-of-32344-ishares-core-sp-500-etf-ivv.html.

iShares Core SP 500 ETF Profile

iShares Core SP 500 ETF (the Fund) is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield performance of the Standard Poor’s 500 Index (the Index). The Index measures the performance of the large-capitalization sector of the United States equity market.

Further Reading: What is a Leveraged Buyout (LBO)?

Want to see what other hedge funds are holding IVV? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for iShares Core SP 500 ETF (NYSEARCA:IVV).

Receive News Ratings for iShares Core SP 500 ETF Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for iShares Core SP 500 ETF and related companies with MarketBeat.com’s FREE daily email newsletter.

Accounting profession faces another moment of truth on financial planning conflicts

Updated

February 18, 2019 09:10:26

A red pen rests next to a business graph
Photo:

As long ago as 2012, accountant financial planners considered mandating a move to fee-for-service. (PhotoXpress)

You can generally tell how important we think something is by how much time we spend on it.

At its quarterly meeting today, the Accounting Professional and Ethical Standards Board has allowed just 15 minutes for what it calls, “update on the royal commission and impact on financial services.”

Just a quarter of an hour for a royal commission report that will have far-reaching consequences for the financial services sector, including many accountants.

But the Accounting Professional and Ethical Standards Board has form in sidelining issues around the conflicted pay that some accountant financial planners accept.

On its website the APESB calls itself “independent”. It’s not.

The APESB is paid for by the lobby groups Chartered Accountants Australia New Zealand, CPA Australia and the Institute of Public Accountants, and they call the shots.

Long history of ignoring conflicted remuneration

In 2012 the board tried to assert its independence when it issued a remuneration standard for those accountants who are also financial planners.

It was called APES 230.

The board had recognised that conflicted payments (such as commissions, percentages of funds under management, soft dollar benefits, and so on) were at the heart of all the financial planning scandals that have devastated the finances, and lives, of so many Australians.

Financial planning mess

The financial planning industry is a mess of conflicts that put many advisers’ self-interest ahead of their clients’ wellbeing, writes Andrew Robertson.

Its conclusion: Accountant financial planners had to operate to the highest possible standard.

Advice was not about selling stuff for the adviser’s benefit.

The conflicted payments had to go.

Or, in the APESB’s words, “no safeguards exist that can reduce the threats (to clients) to an acceptable level.”

In his royal commission report, Kenneth Hayne said this about conflicted remuneration: “Experience, (too often hard and bitter experience) shows that conflicts cannot be ‘managed’ by saying, Be Good. Do the right thing.”

“People rapidly persuade themselves that what suits them is what is right.”

In other words, seven years after the Accounting Professional and Ethical Standards Board recognised that all conflicted payments should be scrapped, Mr Hayne is saying exactly the same thing.

So how did the accounting profession react to its standards board wanting the highest standards, wanting to put customers first, and wanting the conflicts gone?

All three of the accounting industry lobby groups, which pay the APESB’s bills, rejected the proposed new standard.

A new, watered-down version, which kept the conflicted payments, was adopted, and there was a cleanout of the board.

Accountant financial planners passed on professionalism

The accounting profession had passed up an opportunity to show that it truly is professional, that it understood its fiduciary duty, that accountant financial planners really could be trusted to act in their customers’ best interests.

On that last point, adopting APES 230 in its original form would have differentiated accountant financial planners from many in the financial planning industry and could have been a huge selling point.

“You can trust me, I’m an accountant financial planner,” this sector could have advertised.

CPA advice tackles conflicts

CPA launches a conflict-free, fee-for-service financial planning arm, but it could have supported this standard universally.

It would have been very hard for the rest of the financial planning industry to continue to justify its conflicted payments if accountant financial planners were leading from the front.

As the APESB said in 2012 about its consultation period leading up to the development of APES 230, “the consultation phase identified no significant barriers to implementing a fee-for-service approach”.

Accountant financial planners, though, continue to show they’re wedded to their conflicted payments, and the inherent risk that brings for customers.

As late as last year, when the watered-down APES 230 was reviewed, all three accounting groups lobbied for the conflicts to be kept.

Because of those conflicts, which pervade the industry, Mr Hayne said, “I do not believe the practice of giving financial advice is yet a profession.”

The question for accountants is are they a profession or not?

If they are, they know what they must do.

Adopt APES 230 in its original form and get rid of the conflicts that have blighted financial planning for too long and cost so many Australians so much.

For that, 15 minutes simply won’t cut it.

Topics:

accounting,

superannuation,

consumer-protection,

consumer-finance,

royal-commissions,

australia

First posted

February 18, 2019 09:01:04

After Valentine’s Day: Achieving Financial Intimacy In Your Relationship

Getty

Valentine’s Day was a time to express love for your significant other with flowers, chocolates, nice dinners, romantic getaways, or other gifts. However, there may also be less romantic areas of your relationship that need tending to. This is particularly true when it comes to navigating finances since an imbalance between partners in goals, effort, knowledge, and financial independence can create a lack of “financial intimacy” in a relationship. Here are some ways to correct that:

1) Involve them in your financial planning.

Too often, one member of a couple tends to handle all the financial planning. While this can be efficient for the more technical aspects, both people in a relationship should at least be involved in setting goals and priorities. You may want to work longer, but she may want to retire earlier and move to another part of the country. You may want to be conservative with your household accounts, but he may want to be more aggressive. While there’s no one right or wrong answer to these conflicts, set up a money date for you to have an open and honest conversation and plan for your future together.

2) Include them in the day-to-day money management too.

Likewise, it can be just as important for your partner to be involved in the daily money management. After all, it’s tough to budget when you only control half of the family finances. If you’re scrimping and sacrificing, while you feel like your partner is splurging, it can also lead to resentment and tensions in the relationship.

At the very least, you should both have access to any money management apps you use like Mint or You Need a Budget and ideally, you’d review them together. If you prefer to be more independent, you can simply give yourselves monthly or weekly allowances to spend however you like. However, the allowances would be limited to agreed upon amounts and when the money is gone, it’s gone until the next allowance period. (On the flip side, you can reward your frugality by letting yourself carry over excess amounts to be spent later on big purchases and luxuries.) You can further discourage spending by giving the allowances in physical cash since people tend to spend less (and enjoy the purchases more) with paper than with plastic.

3) Make sure your loved one is taken care of in case something happens to you.

You should have adequate life and disability insurance if your partner depends on you at all for financial support. If you’re in your 50s to early 60’s, you might also want to consider purchasing long-term care insurance. If you’re in the 50% of people who purchase a policy by 60 and eventually use it, it can take some of the caretaking burden off your loved one’s back and can protect your joint assets from having to be spent down in order to qualify for Medicaid.

Don’t forget to make sure your estate planning documents and beneficiary designations are up to date. There’s nothing like having your spouse discover that your ex-spouse is still listed as the beneficiary on the individual retirement accounts and life insurance policies that you set up during your previous marriage. Jointly owned assets generally pass on to the joint owner without going through probate, but for assets without a joint owner or designated beneficiary, you may have to change the way the assets are held in order to avoid probate.  Depending on your state, you may be able to set up payable-on-death designations on your bank accounts and transfer-on-death designations on your brokerage accounts, vehicle(s), and real estate as a way to make sure assets transfer outside of probate.  You can also bypass the time and cost of probate by setting up a trust.

4) Help your significant other learn more about personal finance.

Beyond involving them in the long-term planning and short-term budgeting, you may want to help them understand and learn more about personal finances. After all, you may not be around forever to manage your part, and they may find they even enjoy it. Some popular books that simplify personal finances for newbies include The Total Money Makeover by Dave Ramsey, Personal Finance for Dummies by Eric Tyson, The Money Book for the Young, Fabulous Broke by Suze Orman, and What Your Financial Advisor Isn’t Telling You by our CEO Liz Davidson. Just keep in mind that a particular style that appeals to you may not appeal to them, and vice versa, so don’t be surprised when your favorite personal finance guru doesn’t resonate with your partner or they follow the guidance of someone you can’t stand (assuming that someone is promoting legitimate financial principles and not a charlatan).

5) Keep your finances organized for your partner.

You can involve your partner in all the financial decisions, do all the proper insurance and estate planning, and have them learn all about personal finance, but does your partner know where those estate planning documents are? How about the insurance policies? Do they know how to log into your bank and brokerage accounts? How about the names and contact information of your financial planner, tax accountant, and other advisers?

You can use a tool like Mint.com so your significant other can see all the family finances in one place if something were to happen to you. (Just make sure they know the password.) If you prefer a more traditional method, you can just keep everything written down on a financial organizer worksheet.

Sometimes the most important step is to just start talking about money. If you haven’t had these types of financial conversations, it can feel as awkward and uncomfortable as a first date. But with time and communication, you can eventually build a rewarding sense of financial intimacy.