Enjoy the current installment of “weekend reading for financial planners” – this week’s edition kicks off with the big news that Nationwide Insurance is purchasing Jefferson National, the maker of the leading low-cost fee-based variable annuity for RIAs, as Nationwide looks to gear up its no-commission fee-based insurance and annuity products for the DoL fiduciary rule (and gain access to Jefferson National’s RIA relationships to offer new Nationwide fee-based products in the future). Also in the news this week is a new advisor survey from Fidelity, finding that financial advisors are warming up to the DoL fiduciary rule and increasingly see it as an opportunity, though a non-trivial number of advisors (about 1-in-5) report that they may leave the industry altogether if forced to act in their clients’ best interests. (Good Riddance!?)
From there, we have several “counter-intuitive” articles on financial advisor marketing strategies, from why you should stop asking for referrals (and what you should do instead to become more referrable), why you should stop going to networking events (and organize your own instead), why you should create a “prospect repellant” list (characteristics of people you don’t want to work with), and why maintaining an emotional aloofness as an advisor professional may be inferior to sharing your personal story and allowing yourself to be more emotionally vulnerable with clients.
We also have a few more technical articles this week, including: the benefits of using a HECM for Purchase reverse mortgage to buy a retirement home (instead of a traditional mortgage); how factor investing extends beyond the traditional Modern Portfolio Theory (MPT) approach; and ideas for new ETFs that would actually be useful for consumers (unlike the proliferation of so many today that appear to be pursuing extreme differentiation at the cost of introducing new risks).
We wrap up with three interesting articles: the first is a look at how, if you really want to motivate employees, don’t just give them financial bonuses (which can briefly encourage behavior but quickly fade), and instead give them compliments and pizza (which have more lasting motivational effects than you might have realized!); the second is a discussion of how we tend to distance ourselves from those who criticize us, even though the reality is that constructive criticism feedback is crucial to self-improvement; and the last dives into the research of how to actually take a truly restful “micro break” during the day to keep your energy flowing (as even a brief 5-minute restful break can go a long ways to renewing our energy to get through the rest of the work of the day)!
And be certain to check out Bill Winterberg’s “Bits & Bytes” video at the end, which this week includes highlights of the recent #FinTech hackathons from Orion Fuse and eMoney Advisor, the announcement that Motif Investing is launching a new Motif BLUE subscription service, the launch of Betterment’s new “Tax-Coordinated Portfolio” (automated asset location), a new Quovo advisor dashboard, and more!
Enjoy the “light” reading!