A roundup of the latest news and reports of interest to financial advisers.
Social Security COLA likely to top 6% in 2022: Continued inflationary pressure means retirees could receive the biggest cost-of-living increase in Social Security benefits in nearly four decades starting next January, according to Mary Beth Franklin.
What Vanguard’s move into direct indexing will mean for advisers and clients: Vanguard, the firm that launched the index fund industry, is now about to launch direct indexing, avoiding ETFs and mutual funds for at least part of the portfolio. As the company announced on July 13, it reached a deal to acquire Oakland, Calif.,-based Just Invest, a $1 billion direct indexing provider of SMAs.
While the details of the offering haven’t been released and the deal won’t close until the fourth quarter, here are Allan Roth’s thoughts based on the press release and an interview with a Vanguard spokesperson.
Fintech Tifin adds Cathie Wood to board amid brokerage expansion: Star ETF manager Cathie Wood is expanding her reach into the world of investing startups by joining the board of a fintech company, according to FinancialPlanning.
Trendspotter: Why Adviser Fee Structures Are Morphing: Adviser compensation structures are becoming more flexible, according to ThinkAdvisor. The Investment Adviser Association’s 2021 industry snapshot found that over the past couple of decades, advisers have become more likely to offer fixed fees and hourly fees in addition to asset-based fees.
What the Puzzling Drop in 10-Year Treasury Yields Means for Stocks: The decline in the 10-year Treasury yield is puzzling given the economic rebound and latest inflation reports, according to ThinkAdvisor.
How Much Money Do You Need To Be Wealthy? The bar has been lowered for what's considered “wealthy,” according to a Schwab survey.
Bitcoin In Your IRA? What Could Possibly Go Wrong? There are obvious risks in using volatile cryptocurrencies as retirement savings. And more that aren't obvious, writes Alexis Leondis.
FAs Save Time with Model Portfolios, But Many Pushing Back on Fees: Outsourcing to model portfolios frees the advisers to spend more time on client acquisition and retention, says Cerulli Associates’ director of product development.
Should FAs Be Required to Get the Covid-19 Vaccine? Wirehouses, broker-dealers and registered investment adviser firms are in various stages of reopening and strategizing exactly how returning to their offices will play out, according to Financial Advisor IQ.
Examining the Indices in Index-Linked Annuities: A mountain biker needs 18 or 21 gears to smooth a path over rocks and through arroyos. Index-linked annuities now collectively offer some 140 index choices, writes Kerry Pechter.
The Great ESG Paradox: New research has uncovered a paradox, writes Larry Swedroe. Energy firms have been, by far, the most prolific producers of “green” innovations and patents. But those are the stocks that are routinely shunned by ESG investors. Are ESG investors’ goals aligned with their dollars?