The March issue of Research magazine looks at some key issues facing a fast-changing advisory industry.
“Stocks: A Hard Sell,” the cover story by Ellen Uzelac, details how client enthusiasm for equities has taken a hit in recent years, and how advisors are responding to this trend. Recent indications of renewed client interest are discussed as well.
“A Steeper Tax Landscape,” by Jane Wollman Rusoff, assesses the impact of new tax laws on high-income clients, and what strategies are suited for this environment.
The Annuity Analytics column, by York University’s Prof. Moshe Milevsky, offers eye-opening advice on how to make the most of guaranteed living benefits in annuity contracts. Meanwhile, in the latest Finke on Finance feature, Prof. Michael Finke of Texas Tech University discusses what new research is revealing about differences between men and women regarding risk tolerance.
This month’s Political Monitor column, by Senior Editor Kenneth Silber, focuses on how skewed perceptions, described by metaphors involving bubbles, pose dangers in markets and politics alike. Silber assembles polling data on how financial advisors and institutions are perceived by the public as a way to help advisors look beyond a possible “Wall Street bubble.”
Click through the following slides to preview the March issue of Research.
In the March cover story, Contributing Editor Ellen Uzelac discusses how advisors are responding to changed client attitudes on stock ownership. Excerpt:
Back in January, advisor Jeffrey Smith received an email from a relatively new client who was worried about how the debt ceiling negotiations and potential government shutdown might affect her portfolio. Smith’s response was swift—and pre-emptive. He scheduled a face-to-face meeting for the next day and dispatched to all clients a letter he hoped would build a “sound and proper perspective” as events unfolded in Washington.
In closing, Smith, who heads North Shore Investment Consulting in Wilmette, Ill., cautioned: “Again, the media is going to have a field day with this. Try not to let it jar you. Should volatility emerge, throw a hard shoulder toward it. Portfolios need not, and should not, be de-risked as this event approaches.”
Prof. Moshe Milevsky offers some advice on the complex task of optimizing variable annuity options. Excerpt:
I am frequently asked by financial advisors whether clients should “hurry up”—in light of the declining richness of guaranteed living benefit (GLB) riders—and add money to variable annuities (VAs) they already own, before it is too late and they are closed to new contributions.
To be honest, I too, have been wondering about the same with my own VA policy, rich in riders, which I fortunately purchased a few years ago. Although my particular policy and its unique inflation-adjusted income riders aren’t available for sale anymore, I do have the option to add funds.