Wealth Management
Top stories summarized by our editors
12/14/2017

The good news is that today's retirees will live longer than they typically expect; the bad news is that this will put a strain on their retirement savings. Financial journalist Chris Taylor discusses three strategies to help people prepare for a retirement that could last 30 to 40 years.

Full Story:
Fortune
More Summaries:
Chris Taylor
12/14/2017

As the House and Senate sought to reconcile their tax plans, the Financial Services Institute spoke out in favor of a proposal to give pass-through businesses a tax break, with FSI executive vice president and general counsel David Bellaire stating, "We support reduction in taxes for small businesses, especially our financial advisor members." The deal struck by Republican lawmakers would allow pass-through entities to deduct 20% of income before being taxed at the individual rate.

12/14/2017

A recent survey by Harris Poll shows that 43% of millennial men would rather own $1,000 in bitcoins than the same amount in government bonds, which indicates a generational divide on attitudes toward cryptocurrrencies, writes columnist James Thorne. He notes that advisors should at least listen to younger clients' arguments for why they favor it.

More Summaries:
Harris
12/13/2017

President Donald Trump, who as a candidate proposed $1 trillion in infrastructure spending, reportedly is planning to introduce his infrastructure plan in January. What will be in the final proposal is unclear, especially given uncertainty of the administration's stance on issues such as public-private partnerships.

Full Story:
HuffPost
More Summaries:
President Donald Trump, Trump
12/13/2017

Insurer Nationwide is looking into offering a hybrid annuity contract that would include funding for long-term care, said Eric Henderson, senior vice president of the annuity and life businesses at Nationwide Mutual Insurance. Annuity-based long-term care may be more attractive to consumers now that multiyear payment options are available, he said.

12/13/2017

Managing a lump-sum distribution after retirement is becoming a growing problem as people live longer and are more likely to experience cognitive decline, according to experts including Geoff Sanzenbacher, associate director of research at the Center for Retirement Research at Boston College, who spoke at a recent conference. One solution to the problem is for retirees to buy annuities that pay lifetime income, Sanzenbacher says.

12/13/2017

Americans who began retiring in the early 1990s have been able to retain roughly 80% of their savings, a BlackRock Retirement Institute analysis finds, but those nearing retirement today cannot expect the same. Vanishing pensions, lower projected returns and uncertainty regarding Social Security were cited as contributing factors.

Full Story:
BenefitsPro
12/13/2017

Lawyers from firm McGuireWoods offer their analysis of the Financial Industry Regulatory Authority's approach to tracking and examining advisors deemed high risk. FINRA now has a dedicated examination unit that is increasingly using data analytics to spot patterns and predict misconduct, and it also plans to be vigilant of employers' policies for hiring and monitoring high-risk individuals.

Full Story:
Lexology
12/13/2017

Mike Boyle writes it is likely clients will want to know whether the "Trump effect" on the markets is waning and offers advice on how to handle the question. He notes that most forecasters expect the bull market to continue into 2018 and that advisors should be more aware of changes brought by new Federal Reserve policy and developments in emerging markets.

More Summaries:
Mike Boyle, Federal Reserve
12/13/2017

Research has shown retirees frequently spend money faster in their first two years of retirement than they did while working, which can have an adverse effect on their longer-term financial security. Columnist Ryan Derousseau looks at how advisors and their clients can prepare by testing how spending may affect their retirement budget.

Full Story:
Fortune
More Summaries:
Ryan Derousseau