The Fiduciary Rules Channel

Weekly Unemployment Claims: Up 11K from Last Week

This morning's seasonally adjusted 234K new claims, up 11K from the previous week's revised figure, was worse the forecast of 220K. From the release: "The claims taking procedures in Puerto Rico and in the Virgin Islands have still not returned to normal."

How to Convert an Acquaintance to a Prospect without Being Awkward

How should you approach a casual acquaintance and open the dialogue about working together?

When Clients Spend Themselves into Oblivion

What do you do when one of your best clients is spending their way into oblivion?

How to Fire a Client

The decision to "fire" a client is painfully difficult. Many planners are reluctant to disengage with difficult clients due to a sense of responsibility. If you are contemplating firing some of your clients, the following steps will ease the break-up and ensure a minimum of follow-on damages.

Directed Versus Delegated Trusts: What Advisors Should Know

As you evaluate advisor-friendly trust providers, begin with a comprehensive understanding of the associated risks of the directed and delegated options.

Forecasting the Next Recession: Updating Our Outlook for Recession Timing

New developments in fiscal policy, the labor market, and the neutral interest rate suggest that the expansion could extend into the latter half of our recession range.

Five Takeaways from Hundreds of Advisors

I recently completed an extensive speaking tour across the U.S., Canada and Australia. I presented to hundreds of advisors and met personally with many of them. Here are five takeaways from those experiences.

The Ratio of Part-Time Employed: April 2018

Let's take a close look at Friday's employment report numbers on Full and Part-Time Employment. Buried near the bottom of Table A-9 of the government's Employment Situation Summary are the numbers for Full- and Part-Time Workers, with 35-or-more hours as the arbitrary divide between the two categories. The source is the monthly Current Population Survey (CPS) of households. The focus is on total hours worked regardless of whether the hours are from a single or multiple jobs.

Rewiring the Financial Planning Profession

To serve the needs of our evolving consumers, a more comprehensive fiduciary mindset needs to be adopted in order to survive.

SEC Broker Conduct Rules

Last week, the SEC issued proposed rules governing broker-dealer and investment advisor conduct. The rules serve as a counterpoint to the fiduciary rules issued by the Department of Labor.

High-Yield and Bank Loan Outlook

As the Federal Reserve (Fed) tightens monetary policy further, we expect to see default rates higher next year. Loan recovery rates averaged 70 percent between 1990 and 2017 as a result of their secured status and seniority in the capital structure. Senior secured bond recovery rates averaged 58 percent over the same period, while senior unsecured bond recovery rates averaged 43 percent. We are concerned about distressed exchanges as the risk of re-default is high. About 7 percent of high-yield corporate bond issuers have defaulted in the past.

Seeking a Return on Sustainable Development

The Western Pennsylvania of my youth was a magical place, with bucolic parklands and architectural gems like Frank Lloyd Wright’s Fallingwater. The decline of the steel industry over subsequent decades has left this beautiful countryside scarred with abandoned mills and rife with the toxins and refuse of a dying industry. This experience informs my perspective when I think about how to tackle the problem of funding the estimated $2.5 trillion gap in annual global infrastructure needs: How can future development avoid the mistakes of the past?

Six More Phrases Advisors Should Never Use

The previous article I wrote on this subject was so popular that I had to continue my tirade. Toss these six marketing buzzwords in the never-to-be-used jargon dumpster, in reverse order from the least to most offensive.

NewsLetter – April 2018

Read Harold Envensky's most recent Newsletter

The Future of the FPA, the CFP Board and the Organizations that Run the Planning Profession

Last month, I asked readers of Advisor Perspectives to help me think through some complicated issues regarding the future of the profession. Should the professional associations (like the FPA and NAPFA) consolidate in order to create more scale and unity, or should we maintain a healthy competition between them? Today we look at the responses I received.