Here are the latest developments in news, trends and practice management for financial advisers.
What’s in Store for FPA NexGen in 2021
Joey Stemmle, CFP, CRPC, a financial adviser with Riverstone Wealth Advisory Group in Midlothian, Va., is now president of the Financial Planning Association’s NexGen community.
That community, which is dedicated to advancing the careers of some 2,500 young CFP professionals, has identified four key focus areas for 2021: boosting the media exposure of NexGen, creating a one-day gathering conference experience, continuing support for local and national volunteer leaders and building a stronger international community. Full Story: Virginia Advisor To Lead FPA NexGen As 2021 President.
The traditional 60/40 portfolio, long the traditional asset allocation of money managers for what seems like eons now, just had one more nail put in its coffin.
Patrick Nolan, a senior portfolio strategist at BlackRock who studied about 20,000 advisor-plus portfolios, said in a recent 2021 Outlook webinar that a 60/40 portfolio will not only fail to deliver the moderate returns of the past but actually increase investment risk. Full story: More Reasons to Rethink the 60/40 Portfolio.
North Dakota Best Interest Rule Passes Key House Committee
North Dakota is moving closer to creating a best-interest standard for the sale of annuities in the state. Delaware, Alabama, Rhode Island, Michigan, Arkansas, Maine and Nebraska are also working on rules based on the National Association of Insurance Commissioners' model law. Full story: North Dakota Best Interest Rule Passes Key House Committee.
401(k) Sponsors in the Dark About Cognitive Decline
A Department of Labor advisory council compiled a wealth of testimony on the challenges that plan sponsors, advisers, record keepers and others face in identifying retirement savers’ cognitive decline and what options they have when they suspect it. Full Story: Cognitive decline remains a challenge for 401(k) plan sponsors to detect.
Yellen Leaves Door Open to Tax Increases
Treasury Secretary Janet Yellen said she would work with lawmakers to fast-track a series of tax increases on corporations and wealthy Americans as the Biden administration tries to pass spending on infrastructure and expanding the social safety net. Full Story: Janet Yellen leaves door open to tax increase on wealthy Americans
Key House Committee Chairman Wants To Raise RMD Age To 75
House Ways and Means Committee Chairman Richard Neal (D-Mass.) told reporters last week he plans to reintroduce legislation that would boost the required minimum distribution (RMD) age from 72 to 75 and increase catch-up retirement provisions for those over age 60. Full story: Key House Committee Chairman Wants To Raise RMD Age To 75.