The Practice Management Channel

Quarterly Letter

Despite another interest rate hike in June by the Federal Reserve that raised the target federal funds range to 1.75-2.00%, along with plenty of increased tariff talk and (some) implementation by the Trump administration, the investment world was relatively calm in the second quarter of 2018.

The Latest Look at the Total Return Roller Coaster

Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $19,357 for an annualized real return of 13.28%.

The Long-Term Track Record for Factor Investing

A landmark study looked back at more than 100 years of data and 23 countries to determine if there are reasons to believe the cross-sectional patterns in factor returns will persist, or whether they were just anomalies that tended to disappear after publication.

A Proven Way to Boost Referrals

It is frustrating to have great relationships with clients and centers-of-influence (COIs) but virtually no one refers, especially considering how many people we know. Too few of our happy clients refer to us. Is this normal?

The Surprising Traits that Inspire Trust

A new book focused on how institutional asset managers build sufficient trust to attract and maintain assets is helpful to advisors, albeit on a smaller scale. What I didn’t expect were the key traits that inspired trust.

How to Get Out Of Your Own Way

Just as investors have beliefs that limit their ability to grow their portfolio, advisors have beliefs that limit their ability to grow their practices. Those who overcome resistance get the most business. Here’s how the cycle of resistance works and what you can do about it.

Can You Retire Your Retirement Risk?

Many (if not most) people think about retirement in terms of saving for the day they leave the workforce and won’t be collecting a paycheck any longer. The prospect of outliving one’s savings is therefore a top source of stress, along with being able to pay escalating health care costs.

The Long Runway for Infrastructure Spending

Infrastructure is not a glamorous topic — it isn’t satirized on late-night TV, nor is it trending on social media. But the need for increased infrastructure investment is real across the globe. Given expected demographic trends, disruption by new technology and insufficient spending in the past, we at Invesco Real Estate believe infrastructure-related companies could be poised for decades of growth.

The Unique Retirement Issues Facing Women

Women face at least 12 unique financial and life challenges related to long-term retirement planning. Addressing them can be overwhelming and uncomfortable. Only by understanding the issues can you develop strategies that will provide the greatest chance of achieving your clients’ goals.

Bitcoin Miners See a Bullish Breakout on the Horizon

The price of bitcoin surged above $8,000 on Tuesday for the first time since May after the Group of 20 (G20) meeting in Argentina concluded last weekend with little urgency to take regulatory action on cryptocurrencies. In a communiqué, finance ministers and central bank governors expressed confidence that the technology underlying alt-coins “can deliver significant benefits to the financial system and the broader economy.”

Robos Prevent Fee Compression (and don't cause it)

Roboadvisors don’t cause fee compression; when used correctly by advisors, they are the solution.

Climbing a Wall of Perfection

A look at why piling into companies with margins at historic peaks could set the stage for disappointment.

Should You Outsource to a TAMP?

With stints at firms such as Hightower and United Capital, Todd Eklund has worked with some of the largest RIA firms. Having seen and observed some of what works and what doesn’t in the advisor space, I thought his perspective would be valuable to RIA firms considering outsourcing to a TAMP.

Dealing with Employee Turnover

We have had a lot of turnover at our firm. While we are a large organization, it sends a bad message when we lose so many talented people at once. And, of course, many of them are going to our competitors.

What You Need for a Successful Onboarding Process

One of the biggest mistakes a financial advisor can make is to ignore the importance of creating a complete and cohesive client onboarding process.