Industry News
Wealth Management
Top stories summarized by our editors
8/3/2021

Congress should focus on making it easier to invest in IRAs rather than looking to increase restrictions because a few people have very large accounts, tax expert Ed Slott writes. Among Slott's suggestions are eliminating income limits on Roth IRA contributions and getting rid of lifetime required minimum distributions.

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Roth
8/3/2021

Discussions at the Financial Services Institute's recent OneVoice event "contained a truly elevated sense of purpose and urgency on a wide range of topics -- including technology," writes David Knoch of Docupace Technologies. Knoch's top takeaways include the need to create a fully integrated customer experience, and the risk that comes with not maximizing automation and digitization for compliance.

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Digital Wealth News
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Docupace Technologies
8/3/2021

Communications glitches between financial advisors and their clients take several forms, financial planner Michael Broad writes. He relates personal stories to highlight four types of miscommunication that can occur.

8/3/2021

Reverse mortgage professionals have expressed frustration with the reception of their product by financial planners, but attitudes among advisers when it comes to reverse mortgages could be changing. "Minds have opened up about using home equity in retirement," said James Milano, an attorney for the National Reverse Mortgage Lenders Association.

8/2/2021

The Protecting the Right to Organize Act includes the so-called "ABC test," which would reclassify many independent contractors as employees. Financial Services Institute board member and independent financial advisor Mary Beth Hofmeister says this would lead to "incredible dislocation," noting that she wishes to remain an entrepreneur.

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Entrepreneur
8/2/2021

More than 28,600 taxpayers had IRA balances of more than $5 million, according to data from the Joint Committee on Taxation. Senate Finance Committee Chair Ron Wyden, D-Ore., called the data "shocking, but not surprising," saying, "it's long past time to crack down on mega-IRAs."

8/2/2021

People with a history of mental illness should have a psychiatric advance directive as part of their estate planning documents, attorney Moira Laidlaw writes. She discusses how the directives work, why they are important and why some consider them to be controversial.

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WealthManagement
8/2/2021

There are 24.3 million forgotten 401(k) accounts in the US holding about $1.35 trillion in combined assets, according to fintech Capitalize. To maximize savings, account holders are advised to consolidate these plans, many of which are not truly forgotten but rather are not actively managed by the holder, says Capitalize CEO Gaurav Sharma.

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PlanSponsor
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Capitalize
8/2/2021

Hedge funds have seen a rise in the number of first-time allocators placing "unusual amounts" in the asset class to avoid the investment and inflation risk in fixed income, investment consultancy bfinance says. The development marks a departure from typical investor behavior in which "the die is quite cast when it comes to hedge fund allocation," says Toby Goodworth, the firm's head of risk and diversifying strategies.

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Hedgeweek (London)
8/2/2021

A number of hedge funds are investing in cryptocurrency platforms in a bet that tighter regulatory oversight of digital assets will help overcome investor inertia and tip the sector into mainstream finance. Some 70% of firms in a recent Fidelity Investments survey said they plan to hold or invest in digital assets, while Goldman Sachs says nearly half of the family offices it works with would like to hold them.