• Separate P&Ls Reinforce Wealth Management Silos

    Executives Ponder Dismantling Barriers to IntegrationParticipants in the 2nd annual meeting of the Kehrer Bielan Wealth Management Study Group discussed the fragmented landscape of the delivery of wealth management in financial institutions, and agreed on an important barrier to integration—the practice of each component business line in the wealth management umbrella maintaining its own profit-and-loss statement.Managers responsible for each P&L are rewarded for improving its performa...  Read More...

  • Study Provides First Benchmarks for Personal Wealth Management in Financial Institutions

    Banks and credit unions have been disappointed in the performance of their fragmented approach to wealth management, capturing only a small share of their clients’ investable assets and losing market share to other providers of financial advice. Given the fragmented reporting structure, it is difficult to even measure how the entire institution is serving the financial needs of its customer or member households. Trust organizations tend to serve both individual and institutional clients, a...  Read More...

  • Study Confirms Shift of Investment Services from Retail Bank to Wealth Management Structure

    A new Cetera-sponsored study confirms the decades long shift back and forth in where the investment services business reports in the financial institution’s organizational structure.According to the Annual Consumer Investments Study conducted for the Consumer Bankers Association by Kenneth Kehrer Associates, in 1995 only 29% of investment services units in financial institutions were housed in the retail or consumer bank. That share grew year after year, reaching a peak of 49% in 2007, acc...  Read More...

  • A Greater Guarantee

    Advisors Receive a Raise in 2020An important component of 2020 advisor incentive plans is the new FLSA Rule which raises the minimum salary thresholds for exemption from overtime pay starting January 1, 2020. To qualify for the exemption, employees generally must be paid not less than $684 per week ($35,568 annually) on a salary basis. Being paid on a “salary basis” means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less freque...  Read More...

  • Their Wealth Management Businesses Continue to Disappoint Financial Institutions

    Asset and Revenue Growth Fall ShortParticipants at the Kehrer Bielan Wealth Management Study Group in Chapel Hill last week confronted an uncomfortable reality – the collective wealth management businesses in financial institutions continue to disappoint the C-suite in their host institutions. Looking at the collective asset and revenue growth of all of an institution’s separate wealth management businesses – retail brokerage/investment services, Personal Trust, and asset manag...  Read More...

  • Addressing the Decline in Financial Planning

    Fewer New Plans from Bank-Based AdvisorsFinancial planning is one of the best ways that financial advisors can differentiate themselves in an increasingly commoditized market for financial advice. While firms urge advisors to incorporate planning into their practice, bank-based advisors have been slow to embrace planning. New data suggests that, despite progress in recent years, planning in banks and credit unions has actually regressed. In 2017, the average number of new plans created per ...  Read More...

  • For Most Advisors, the Payoff from Planning Seems Slim

    Getting Over A Startup Hurdle to Reap the RewardsMost advisors in banks and credit unions resist financial planning, or go through the motions to check the boxes that management builds into the incentive program. The average number of goal plans created or updated is just one plan per month. Why don’t they embrace planning as a way to create deeper relationships with their clients, document the basis for their financial advice, and build a better business model?New research from Kehrer Bie...  Read More...

  • Analysts Disrespect Annuities, So Why Do People Buy Them?

    “I hate annuities!” trumpets one mass marketing money manager. Other critics look down on tepid yields and what seems like high fees. Yet US consumers invested $133 billion in fixed and fixed index annuities last year.   Read More...

  • Annuity Owners More Confident

    But Annuities Get No RespectIn the world of investing, fixed-rate and index annuities are dismissed as not worthy of a savvy investor’s attention. Indeed, for some, annuities are the object of scorn. Ken Fisher, the ubiquitous money manager, uses the tagline, “I hate annuities.”For the traditional stock-picking stockbroker, fixed-rate and index annuities are dull fare, and limit the client’s upside.   Read More...

  • Assets Flow to Providers of Financial Plans

    According to the MacroMonitor, 11 percent of US households have a written financial plan, but only 10% of them – 1% of all US households – have obtained that plan where they bank. As banks and credit unions consider the extent to which their financial advisors have embraced financial planning, they should be mindful of the effect of plan penetration on where households keep their financial assets.The MacroMonitor data indicate that the average US household keeps 59% of its savings an...  Read More...

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