Drone Investing Could be the Next Big Thing

Advisors who deploy active portfolio management at their firms have several demands, including access to low-fee investments, and greater clarity/transparency on active management strategies.

WASHINGTON- The Federal Reserve will begin shrinking the enormous portfolio of bonds that it amassed after the 2008 financial crisis to try to sustain a frail economy. The Fed announced Wednesday that it will let a small portion of its $4.5 trillion balance sheet mature without being replaced, starting in October with reductions of $10 billion a month and…

Sept. 21– Federal Reserve Chairwoman Janet Yellen on Wednesday blasted Wells Fargo for its “egregious and unacceptable” sales scandal and said the regulator may take action against the bank. Instead, the Consumer Financial Protection Bureau settled for $100 million, according to the agency’s internal documents released by Congressional Republicans.

Beginning Oct. 1, registered investment advisors (RIAs) will have to disclose more details around private funds they manage, social media postings, and other areas.

Sixty-two percent of American millennials describe themselves as very“ happy” and 65 percent say their life is“ meaningful,” according to a new study published today by Wells Fargo& Company. Although millennials are happy, 69 percent say they want to get over their“ anxiety” about money, and only a third say they are“ satisfied” with their financial life.

Sept. 19– Former Hampton Roads financial adviser Roger Odell Hudspeth II pleaded guilty to two federal felony counts of investment adviser fraud and unlawful monetary transactions on Monday in the Eastern District Court in Norfolk. For John and Beatrice Wanzer, both in their early 70 s, hearing the man who took their $25,000 admit his guilt was of little comfort.

Symetra Life Insurance will join the parade of insurers offering fee-based indexed annuities with the launch of two fee-based fixed indexed annuities.

—WASHINGTON— When the Federal Reserve meets this week, it’s sure to take account of the economic consequences of two devastating hurricanes. It will also be awaiting an announcement, possibly within weeks, about its own leadership: whether President Donald Trump will ask Janet Yellen to remain Fed chair beyond February, when her term ends. The Fed’s balance sheet…

Sept. 18– Tax reform-hungry Republicans should keep their hands off the cash workers set aside for their retirement, says Putnam Investments CEO Robert Reynolds, who actively lobbying Congress as it prepares to address President Trump’s top legislative priority for the fall. Reynolds warned that retirement investments are viewed as “low-hanging fruit” in…

Earlier today, at the federal courthouse in Central Islip, New York, Senior United States District Judge Arthur D. Spatt sentenced Brian R. Callahan to 12 years’ imprisonment and three years’ supervised release, and ordered that he pay approximately $67.6 million in restitution following his April 29, 2014 guilty plea to securities fraud and wire fraud.

More and more Americans are living to and past 100 years. The extended lifespan is straining retirement nest eggs as those nonworking years stretch several decades. What can advisors do?

Times are changing in the financial services industry because of what is being called the greatest multigenerational wealth transfer in American history. The Center on Wealth and Philanthropy at Boston College estimates that $59 trillion- divided among heirs, charities, estate taxes and estate closing costs- will be transferred from 93.6 million American…

NEW YORK – As it becomes increasingly difficult for companies to manage pension liabilities in the current market and regulatory…

Investors should favor investing in Japan and the Asian consumer, analysts say, but they should also expect growing pains. Growth in both Japan and China is outpacing U.S. and European barometers.

Incomes for a typical U.S. household, adjusted for inflation, rose 3.2 percent from 2015 to 2016 to $59,039, the Census Bureau said. Trudi Renwick, the bureau’s assistant division chief, cautioned that the census in 2013 changed how it asks households about income, making historical comparisons less than precise. Elise Gould, a senior economist at the Economic…

WINDSOR, Conn.– U.S. single premium pension buy-out product sales were $4.1 billion in the second quarter of 2017, more than…

–Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Pension Funding Index, which analyzes the 100 largest U.S. corporate pension plans. In August, the funded status of these plans fell by $17 billion– the largest loss year-to-date– due to a decrease in the benchmark corporate bond interest rates used to value…

The latest American Equity fixed indexed annuity is the company’s first foray into the fee-based FIA market. The product comes with an eight-year surrender charge, the company says.

–More than half of Americans have less than $1,000 in savings, a new survey found. The results revealed that 57 percent of Americans have less than $1,000 in savings— a significant improvement from a similar survey in 2016, which found that 69 percent of respondents had less than $1,000 set aside. $0 Less than $1,000 $1,000-$4,999 $5,000-$9,999 $10,000 or more.

Investors tend to get nervous with so much volatility threatening the world markets, analysts say. Advisors can help wary investors stay the course by reminding them that the markets are solid and stable.

Employee 401(k) accounts seems to be the preferred choice of those behind the Department of Labor fiduciary rule. Does that mean 401(k)s are doing a good job? Our Kim O’Brien tries to answer that question.

—A Connecticut financial adviser has been charged with running a Ponzi scheme and defrauding clients out of more than $1 million. The U.S. Securities and Exchange Commission filed a complaint at federal court in New Haven on Thursday, alleging 40- year-old Leon Vaccarelli engaged in a Ponzi scheme for more than four years. The New Haven Register reports the…

Sept. 01– Federal securities regulators on Thursday charged a Waterbury- based financial advisor with defrauding clients out of more than $1 million. The U.S. Securities and Exchange Commission filed a 16- page complaint in U.S. District Court in New Haven claiming that 40- year-old Leon Vaccarelli of Waterbury and a limited liability investment company he…

—The scope of Wells Fargo’ s fake accounts scandal grew significantly on Thursday, with the bank now saying that 3.5 million accounts were potentially opened without customers’ permission between 2009 and 2016.. That’s up from 2.1 million accounts that the bank had cited in September 2016, when it acknowledged that employees under pressure to meet aggressive…

A new graphics-intensive tool from Assurance helps advisors make better presentations, while protecting them against fiduciary standard challenges, analysts say.

There’s been a flurry of legal activity recently around the Department of Labor fiduciary rule. What does it all mean? Our Kim O’Brien breaks it down and finds it’s not all the good news that’s being reported.

Tax deferral laws make annuities a great option for clients planning for retirement. But what should advisors be looking for in crafting an effective plan to take advantage of annuities?

A new study finds that employee bonuses and inheritance funds are way up. How can advisors help clients make the most of their newfound windfall? By paying down debt and investing responsibly, experts say.

The U.S. Attorney for the Eastern District of Virginia, Dana J. Boente, issued the following news release:. Daryl Gene Bank, 47, of Port St. Lucie, Florida, and Raeann Gibson, 45, of Palm City, Florida, were previously residents of Virginia Beach. According to the allegations in the indictment, Bank created, owned and operated dozens of Virginia limited liability…

The U.S. Attorney for the Eastern District of Virginia, Dana J. Boente, issued the following news release:. A federal jury convicted a former University of Virginia football player today of his role in a $10 million fraud scheme. “Behind every lie is a choice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia.

New Department of Labor fiduciary rules that went into effect June 9 require only “reasonable compensation” for sales of products into retirement accounts. What is “reasonable?” Our Kim O’Brien tries to answer that question.

More than three-quarters of workers are living paycheck-to-paycheck to make ends meet— up from 75 percent last year and a trait more common in women than men— 81 vs. 75 percent, according to new CareerBuilder research. The national survey, which was conducted online by Harris Poll on behalf of CareerBuilder from May 24 to June 16, 2017, included representative…

District Judge John A. Gibney Jr. on Monday called a defendant- who is accused of swindling about $9 million from more than 60 investors- a liar, saying he thought the man would run rather than face certain conviction. “He is not a truthful person and will do whatever he needs to get out of trouble,” Gibney said of former football player at L.C. Byrd High School, Fork Union…

Voya Financial, Inc. (NYSE: VOYA), announced today that for the first time it will offer a new advisory-based solution to…

-Wealthsimple has launched a Halal Investing portfolio to provide observant Muslims in the United States with an accessible, low-cost, diversified investment option through Wealthsimple’s incredibly simple digital platform. And like Wealthsimple’s Standard and Socially Responsible Investing portfolios, there is no account minimum- investors can get…

Pacific Life Insurance Company announced the close of a $35 million Pacific Secured Buy-In® transaction. As of the transaction date,…

Nineteen percent of Americans have nothing set aside to cover an unexpected emergency, according to recent data. How can advisors help their clients? By pushing them to establish an emergency fund.

As many as 114 multiemployer pension plans covering nearly 1.3 million workers are underfunded by $36.4 billion and expect to become insolvent within the next 20 years because they do not have money to pay participants the full benefits earned. These findings are from a new analysis by Cheiron Inc., the actuarial consulting firm, of the latest annual financial…

Over 15 years, he grew his financial planning business with Edward D. Jones& Co. to customer accounts worth $150 million. Today, the 52- year-old married father of grown children is locked in a bitter legal battle with Edward Jones and two former colleagues in a case that has shocked and divided residents in Willows, a community of 6,000 about 85 miles northwest of…

Saving for retirement said hindered by helping family. Just under half of U.S. investors have children and at least one living parent, placing them in what is commonly called a sandwich generation, according to the Wells Fargo/ Gallup Investor and Retirement Optimism Index. Thirty-two percent of surveyed investors reported providing financial help to a child…

A long-time Bellevue investment advisor was sentenced today in U.S. District Court in Seattle to nine years in prison, three years supervised release, and $3,660,216 in restitution for wire fraud and making false statements, announced U.S. Attorney Annette L. Hayes. CHRIS YOUNG YOO, 44, pleaded guilty in March 2017, admitting he raised millions of dollars in…

For those clients who are forced into an early retirement, financial advisors have to navigate both the emotional and financial fallout, and re-adjust that client’s retirement plan on the fly. Here are some tips to do that.

According to Sherman Carl Vaughn Jr., the firm he created with Merrill Robertson Jr., a former football player at the University of Virginia, operated on lies that often led to the emptied retirement accounts of investors- accounts that were targeted, says Vaughn, because that was where the money was. Alleged victims appearing Wednesday included Robertson’s…

MassMutual’s college savings calculator estimates that a family with a 5- year old child entering kindergarten today can expect to pay a hefty amount when their child enters college in 2030, with averages for these youngsters looking like:. Private 4- year college: $368,739 Public 4- year out-of-state college: $287,466 Public 4- year in-state college:…