With interest rates on 30-year fixed mortgages more than doubling from a year ago and the Fed signaling further rate hikes, The era of low mortgage rates is over for the near future. So how do advisors respond? It cautioned against trying to time the property market, suggesting that jumbo loans may offer better value than conforming loans, and recommending larger down payments if possible. I asked some top advisors that question.
Dodge tax bullets. When the Secure Act was enacted into law in late 2019, one of the key changes was the elimination of so-called “stretched IRAs.”From now on, many beneficiaries of inherited IRAs will have to withdraw them in ten years, not for life. But the IRS did not propose Relevant provisions on minimum required distributions until earlier this year. When it did, it caused confusion as to whether beneficiaries who did not get the RMD from the inherited IRA in 2021 and 2022 would get a major tax hit. We can breathe a sigh of relief as we say the new rules will come into force by 2023.
The breakaway Merrill team is detained by Goldman. The Merrill Lynch team managing a billion dollar business in Beverly Hills, Calif. Team with Goldman Sachs Advisor Solutions, the bank’s custody unit, born out of Goldman’s acquisition of Folio Financial in September 2020. The founders of Beverly Hills Private Wealth, a newly formed registered investment advisory firm, touted the move to independence as a means of providing fiduciary-level advice while being restricted. Conflict of interest.
Edward Jones carries out the bank’s plan. Edward Jones abandoned it plans to open a bank He said it would have been providing non-intermediation services to its clients and was unlikely to get the Federal Deposit Insurance Corporation approval required for the project. It touted the opportunity to provide a “centralized source for saving, spending and borrowing,” but cited “recent conversations” with the FDIC as a factor in the decision to scrap the plan.
There will be an SEC crackdown on communications with advisors. Investment advisers should be prepared to: Enhanced scrutiny Our columnist writes from the Securities and Exchange Commission on Electronic Communications, citing the recent announcement of $1.8 billion fines against 16 companies as a sign that regulators are on their toes. As the SEC’s chief of law enforcement advocates tougher penalties for misconduct on the record, companies are taking the opportunity to revise their books and records policies to account for their increasingly digital communications with clients. and how you updated the instructions.
How to approach real estate planning. Estate planning is a key component of a comprehensive financial plan, yet clients are often reluctant to be involved in the process. postpone it oftenA new study quantifies the challenge, finding that Americans who work with advisors are more likely to have real estate plans, but advisers need to double down on their efforts to create and update those plans with their clients. There is
Nearly 20% of the US population identifies as Hispanic or Latino, yet advisors for this demographic group are in short supply.Barron’s Advisor this week Spoke with Kenneth Correa, the son of Colombian parents, works in Advisory Recruitment and National Sales for Merrill Lynch Wealth Management. Correa explains Merrill’s plans to move Hispanic/Latino advisors from his 9% to 20% of the Thunderous group. And he explains how far the industry has come in a quarter century.
Enjoy your weekend.