In late 2011, I was amazed by the valuations financial services stocks were being awarded. Having blown up (for all practical purposes) the financial system beginning in the summer of 2007, it was only natural that financial stocks should be sold off, because, well, some were insolvent.
Here at REP. magazine and WealthManagement.com, we receive loads of books each year on finance, investing strategies, business, leadership and other how-to-invest-in-various-financial-instruments books.
Greg Friedman, owner of Friedman & Associates, and Richard Stone, founder of Salient Wealth Management, met some years ago at a Schwab IMPACT conference. Turns out their financial advisory offices were within 10 miles of each other.
A few years later, Stone says he came to a crossroads. His firm, Salient had hit a wall. The practice had met growth targets, but Stone says, to remain on the growth path he had to master technology and create a deeper bench of employees. “If I would have lost one or two people, we would have been in trouble,” Stone says.
Remember Oct. 19, 1987? That was the day the Dow Jones Industrial Average lost 22.6 percent in one trading day. That was a Monday and by that Saturday, J. Hagood Ellison Jr. and E. Robertson Kibler, both Merrill Lynch financial advisors, were huddling to change their business models. Back then, the classic brokerage model reigned: stock picking for commissions.
I love to read GMO’s quarterly reports. For obvious reasons: Everybody loves to read about horror. GMO, for the few who don’t know, is a famous asset manager (about $100 billion in assets under management) founded by Jeremy Grantham and his partners.
The New York Post published an interesting article recently explaining to the lay reader just what, as the NYP’s headline writers put it, the Libor scandal really means. The paper’s headline read, “Li(e)bor Confirms It’s Rigged.” Wait. Bankers rigging inter-bank lending to suit their needs? No way! That’s a shock.
Variable annuities can offer a number of potential benefits: They can help plan retirement income, generate tax-deferred growth and, with some contracts, protect principal. Yet even advisors, who recognize the benefits of variable annuities acknowledge their drawbacks—particularly their fees and the tax treatment of gains....More
As the industry continues to shift toward fee based business, many advisors are taking a deeper look into their current practice in an effort to align with this trend. The good news is that shifting away from a commission-based model can transform your practice in powerful ways—including increasing the stability of your revenue streams, enhancing client loyalty and potentially boosting the value of your businesses....More