The evolving price of financial advice; Morgan Stanley takes arbitration hit; affording a home in retirement

The evolving price of financial advice; Morgan Stanley takes arbitration hit; affording a home in retirement

PRACTICE MANAGEMENT: As more financial advisors adopt different fees from the industry's traditional rate of 1% of assets, they're inventing new ways of confronting one of prospective clients' main concerns.

Almost all registered investment advisory firms collect a fee based on the number of assets under management, but just under half charge fixed or hourly rates.The price of advice represents one of the most important practice management questions for planners amid a debate that often divides the industry even as it may confuse the clients paying the fees.

Read: Financial advisors get flexible with fees — with or without AUM charges




REGULATION AND COMPLIANCE: ?A Morgan Stanley arbitration case is showing the fine line firms must walk when trying to accommodate their employees' political ambitions.

The large wirehouse was ordered by a three-member arbitration panel on Feb. 2 to pay $147,000 to Deborah Adeimy, a former employee who had sought a leave of absence in late 2021 so she could run as a Republican in Florida's 22nd congressional district. In a complaint to the Financial Industry Regulatory Authority — the broker-dealer industry's self-regulator — Adeimy accused her onetime employer of blocking her political aspirations.

Read: No running! Morgan Stanley paying $147K over thwarted political ambitions



RETIREMENT: Downsizing one's home is a common way to save money during retirement. Sixty-four percent of American seniors move at least once after they retire, according to a study by Merrill Lynch. Of those who do, about half move to a smaller house.

Yet buying a home — even a smaller one — is not easy in today's economy. But what if you had the chance not to buy a home, but to build one? The problem for one retiree — medical outlays, taxes and other costs could get in the way.

Read: Can my client afford to build her retirement dream home?

Related: Retirement confidence keeps rising as Fed ponders rate cuts



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Dana Stone

Public Relations Expert | Fintech Nerd | Shaping the Future of Fintech, One Story at a Time | Making Magic through Powerful Relationships | Emotional Intelligence Rockstar

1 年

Good for her to fighting back on paid leave. If more companies would pay for parental leave, we'd really be on to something here...

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