Archive | October, 2008

IARD System Fee Waiver Extended

Posted on October 31, 2008 by in General

ADVHere’s a quick note that will make RIAs happy in light of volatile markets.

The SEC and NASAA have announced that Investment Adviser Registration Depository (IARD) set-up and annual fees will be waived for 2009.

Here’s a clip from their announcement:

Washington, D.C. — The Securities and Exchange Commission and the North American Securities Administrators Association (NASAA) today announced they will waive the initial set-up and annual system fees paid by investment adviser firms to maintain the Investment Adviser Registration Depository (IARD) system. Separately, NASAA announced that for next year it will also waive those system fees paid by investment adviser representatives (IARs).

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NAPFA Technology Conference Report: Day Three

Posted on October 28, 2008 by in Technology

Day three of the NAPFA Technology Conference leads to the close of this invigorating trip.  I had the opportunity to share many stories and ideas with practitioners and back-office staff alike, and have come away with several new ideas I hope to implement over the next several months.  Here is the recap of day three:

Human Capital

Richard Lee of Lee Financial Corporation opened the final day with a session titled Human Capital and Systems.  Richard commented that financial advisers have come a long way since the days of VisiCalc, but advisers are still defining the business and profession.  He played a video featuring a staff member who discussed how spreadsheets and computer programs simplified financial product illustrations in the early 80s.

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Another ByAllAccounts “Under the Hood” Session

Posted on October 27, 2008 by in Efficiency, Technology

ByAllAccounts, the account aggregation service provider, is holding another “under the hood” session in November.  I blogged about their first session in September, but I missed it due to a scheduling conflict.

I signed up for the next session to be held on:

November 5, 2008
2:00 – 3:00 Eastern Time

Visit my previous post to read more or simply go to the ByAllAccounts website to register.

NAPFA Technology Conference Report: Day Two

Posted on October 23, 2008 by in Technology

Day two of the NAPFA Technology Conference has been exhausting.  Admittedly, I was up late last night, but digesting the volume of information and resources highlighted today is something I’d compare to drinking water from a fire hose.  So here it is, a recap of day two:

If you haven’t seen a Tamarac demo, DO IT NOW!  If your firm trades on a consistent basis (e.g. over 2,000 trades a year or so), Tamarac will save time, reduce mistakes, and facilitate compliance.

Tamarac is poised to give 3rd party money managers a run for their money.

I recommend requesting a demonstration of the program.  Connor Wilson presented for this conference, and he has deep knowledge of the program yet is able to explain its complex features with ease (note: I receive no compensation whatsoever for saying this, as noted in my About page).

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NAPFA Technology Conference Report: Day One

Posted on October 22, 2008 by in Technology

Here’s a quick post on the highlights from today’s NAPFA Practice Management and Technology conference held in Las Vegas.

Chris Parker, Franklin Covey: Success Is In The Systems

  • If you closed your financial planning practice today, what would your clients miss?  The answer makes up a significant part that differentiates your firm from other firms around you.
  • On leadership: You can choose who to follow, but you can’t choose who follows you.
  • Finally, clarify your business purpose: You must define the specific job to be done at a high level.  Next you must identify the strategic link between your firm’s mission and strategy.  Lastly, you must ensure you have a money making model and operate profitably

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The Credit Crisis: All You Ever Wanted To Know

Posted on October 21, 2008 by in Professional Development

My good friend Michael Kitces, CFP®, etc. recently published an in-depth review of the events that brought about the current credit crisis.

As a resource for its members, the Financial Planning Association has made Michael’s October newsletter available for a short period of time.

Click here to visit the FPA Financial Crisis Resource Center.  The link to Michael’s credit crisis article is near the bottom, as shown below. As of October 29, the link to Michael’s article has been removed.  Bummer.  There are still other useful resources on the FPA’s Resource Center.

Kitces link

Replace Performance Reviews with “Previews”

Posted on October 20, 2008 by in Practice Management

clockIf you haven’t done so already, read the Business Insight section of today’s Wall Street Journal.  Look for the article titled Get Rid of the Performance Review! by Samuel A. Culbert.

Click here to read the article on the WSJ.com website -OR- click here to view it on the MITSloan Management Review.

Dr. Culbert, a professor of management at the UCLA Anderson School of Management, writes about putting an end to formal performance reviews because they “destroy morale, kill teamwork, and [hurt] the bottom line.”

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Schwab Institutional Website Goes Down

Posted on October 17, 2008 by in Technology

crashEarlier today, Schwab Institutional’s website was unavailable for investment advisers, including my firm.  My access was out for about one hour during the afternoon trading session.

We, like many other wealth managers, use Schwab’s custodial services fairly extensively, including the placing of trade orders online, opening new accounts, and reviewing balance and position history.

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Blog Action Day: Advisers Must Act to Fight Poverty

Posted on October 15, 2008 by in Professional Development, Taxes

Blog Action DayToday’s post is a part of Blog Action Day, a world-wide initiative of all bloggers to discuss global issues and encourage positive dialogue.  For 2008, the Blog Action Day theme is Poverty.

Let’s face the truth.  Financial advisers are some of the best-equipped individuals to help with the financial aspects of poverty.  But as a profession and as a whole, advisers are not unified in their efforts to help those affected by poverty.

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Recharacterize Underwater Roth IRA Conversions

Posted on October 13, 2008 by in Taxes

down chartDid you have clients perform an IRA conversion to a Roth IRA last year?  If so, I’m willing to bet that the value of the account when the conversion took place is a bit higher than it is now.  There may still be time to undo the conversion and potentially save clients money.

A quick review on conversions: Taxpayers (other than married filing separately) with a Modified AGI of $100,000 or less may convert assets in an IRA (including a SEP or SIMPLE after 2 years of participation) to a Roth IRA. Taxpayers owe ordinary income taxes on the amount converted, but not the 10% premature distribution penalty.

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