We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • DOL fiduciary rule: My fears of change (of the lack thereof)

    May 16, 2016 by Mike McGlothlin, CFP, CLU, ChFC, LUTCF

    With the U.S.Department of Labor’s rule still fresh in our minds, it’s hard to think much beyond the changes our industry will face in the next 12 to 18 months. But, if we step back and look at the bigger picture, we have more important challenges ahead. We might be afraid of change, but I’m more worried about what will happen if we if don’t.

    Lack of advisors

    In the United States today, we have only one financial professional for every 1,000 citizens. And, we have the largest generations of Americans leaving the workforce for retirement, relying on the assets they’ve have saved for the rest of their lives. No way can a single professional provide the necessary advice to 1,000 people, especially with a low-interest environment, unstable global economy and the most complex tax code in history. We must develop a better system to recruit, invest in and train new professionals in our industry.

    Commoditization of technology

    Technology can do great things for our industry, but it can also do some damage if we aren’t careful. In his book “End of Jobs,” Taylor Pearson discusses how just a little over a decade ago, Loudcloud, an early cloud hosting service, hosted applications for $150,000 a month. Today, those same hosting services cost $1,500 a month. With today’s appeal of therobo-advisor, I expect the same revenue compression over the next decade in our industry.

    Our current climate is to look for the least expensive way to provide a service instead of providing a service with the most value. Asset allocation can be found everywhere; however, managing the sequence of returns makes all the difference in whether a client runs out of money. We must redefine ourselves from asset managers to client-focused advisors — and customize it with scale.

    Changes in income

    Pearson also points out that the American population faces a major shift in income generation — and he’s not referencing the loss of earned income by voluntary retirement. Instead, more Americans will turn to entrepreneurial opportunities in the future. Because between 1948 and 2000, jobs grew 1.7 times faster than our population — since the turn of the century, however, our population has grown 2.4 times faster than jobs. Without the retirement plans of “normal” employment, we must help our clients find vehicles to meet long-term savings demands and educate them on the impact of self-employment versus paid wages. Our clients started the mind shift, so our industry must adapt to keep up.

     
     
    Moving sooner than later

    It’s been said many times, but it’s worth repeating: We have to do a better job working on our business instead of in our business. It is time for us to make a fundamental shift, which requires thought and decisions on how we will capture market share in a largely homogenous product set. I challenge everyone to critically think about their business first thing, every day.

    In his book, “Triggers,” Marshall Goldsmith discusses a 2011 study that followed 1,100 decisions of an Israeli parole board. Seventy percent of the prisoners were granted parole when they appeared before the board in the morning, while only 10 percent received parole when they appeared in the afternoon. By human nature, we get fatigued and worn down by making decisions throughout the day, and we default to status quo. My suspicion is that financial professionals end up with the status quo simply because we don’t pay attention to our business until after we are too tired to think about our future.

    We face a multitude of challenges in the next 12 – 18 months. All the while, the American population moves toward the need for more advice, more education, and a renewed industry full of fresh ideas and deeper client relationships — all energized by new technologies. We need to take time to think about how we exceed customer expectations — not by rates of return, but by experience.

    Winning strategy

    Cost-conscious prospects looking for more advice create opportunities for the right business model. Have you spent enough time on your business so you can focus on its biggest assets — your clients?

     
    Mike McGlothlin

    Mike McGlothlin CFP®, CLU, ChFC, LUTCF

    Originally Posted at ProducersWeb on May 16, 2016 by Mike McGlothlin, CFP, CLU, ChFC, LUTCF.

    Categories: Industry Articles
    currency