Those financialalert spoke to nominated a variety of issues for our annual "the good, the bad and the ugly" roundup - and for what advisers should be doing over the break to prepare for 2014.
It is that time of the year where practitioners think in detail about the year ahead - most are hoping for that big "break through" year. You just need to focus on the right TASKS.
The Santa myth can teach financial advisers a lot about the three levels of trust in the adviser-client relationship.
Across the ditch, Australia's Productivity Commission has recommended a jump in the entitlement age for superannuation to 70. We spoke to Kiwi academics and financial advisers about the likely future of NZ Super.
Most advisers routinely cross paths with attractive prospects in day-to-day life. The challenge is to raise the possibility of working together without becoming known as someone who is always pitching.
Today's long period of very easy money and very low yields has distorted the financial system. This will cause unintended consequences in the near future as QE ends.
Why bother to get your CFP designation when AFA is the regulator's standard? Simple - 68% of CFP professionals generate higher revenues than those without certification.
For some clients, even achieving their goals is unsatisfying. Research suggests that financial planners could go a long way in helping clients to really derive more happiness from their money.
The Academy Spring Seminar 2013 featured four sessions: Mock FOMC meeting; The state of economics/investing and of long-term expectations; A global perspective to bottom-up fundamental research, an Insurance sector case study; and, Investing in property.
Even our positive expectations of the much anticipated Third Plenary session of the Communist Party of China were exceeded.
So you've read FMA's DIMS guidance note and decided it is all too hard? Hopefully not - non-corporate AFAs shouldn't be overwhelmed - and retaining DIMS may be good for business.
This article contends that some arguments used to validate alternative indexing can be easily proven false.
The Code Committee is currently reviewing final submissions on proposed changes to the Code of Professional Conduct for Authorised Financial Advisers. Structured Continuing Professional Development is shaping up as the hot potato, with the way in which advisers are accredited CPD hours set to change significantly.
Recently, I spent time reflecting carefully on how regulatory reform has worked thus far in New Zealand, and where things might head next.
In this second of our two-part feature on ageing and how advisers need to adapt for this growing client base, we take a closer look at the personal and demographic effects.
There are many benefits to having a clearly articulated financial planning philosophy for your firm including helping ensure clients will be a good match.
The new wave of jargon around financial planning should be a concern to us all. There is a very real risk that we will begin to lose sight of the good we do.
Significant demographic change is happening. To prepare the retirement readiness, the financial services industry needs to provide better advice and products.
The US debt debate cannot be blindly dismissed as a short-term issue. It will be navigated, but with no real solution - the ingredients are being put in place for higher bond yields.
Conventional wisdom is that retirees should reduce their equity exposure in retirement as their time horizon shortens - in reality, the ideal may actually be the exact opposite.
I'd bet these three ideas hold more valuable and implementable portfolio construction information than any short-term economic, political and market machinations.
A simple answer you might think. But, when we posed this question to the expert panel at the recent Finology Conference, it quickly became evident that they would struggle with who to recommend.
A myriad of firms, institutions and individuals took part in the recent Money Week 2013. We talked with some of those involved to see where Kiwis are at in terms of financial literacy, money management and seeking financial advice.
Deleveraging will leave a lasting impact - and meeting the challenges it presents investors will be critical to everyone operating in the new financial landscape.
Financial planning's "third wave" may well be a four-factor service model that places much greater emphasis on helping clients maximise their human capital, not just their financial capital.
With the deadline passed for submissions on the proposed changes to the Code of Professional Conduct for AFAs, we asked the Code Committee Chair and some of those who made submissions, what their view is of the proposed changes.
Rather than being an alternative, social media is just another way to do networking and referral marketing. If you're struggling to dip your toe in social media, here's how to get started.
As a NZ delegate at the recent PortfolioConstruction Forum Conference in Sydney, here are the key pointsfor NZ advisers to take on board from this year's Lifecycle Investing theme - which should raise the priority of financial advice in clients' minds.
As people get older and live longer, mature and elderly clients are starting to make up a larger part of advisers' client bases - and they bring a lot more issues than just their finances.
Of all the challenges for financial advisers, one of the most daunting is persuading clients to discuss their finances with family members.
Back in February, we published an expose on links between Phoenix Forex, OakFX, World Investor New Zealand magazine and various others. Over seven months later, the Financial Markets Authority has warned the public.
In a report that will no doubt be read closely by the Financial Markets Authority - and therefore should get the attention of New Zealand advisers - the Australian Securities and Investments Commission (ASIC) has made 12 recommendations for financial advisers.
Contrarian investment ideas are hard to find. After a 20-year bear market and with the Nikkei still 60% below its 1989 high, Japanese equities are an attractive contrarian investment.
Looking beyond the immediate risk of Fonterra's product safety issues, over the medium-term, we continue to see sufficient global and domestic economic momentum to support higher bond yields.
In this bigger picture stuff, I think you'll find some valuable seeds to help you think about - and change or reconfirm - your practice's current approach to investment.
Australia faces big economic challenges - meaning superannuation will inevitably feel pressure for reform which will encompass four key changes.
Two years since inception, the FMA's CEO will leave after he finishes his minimum contract period in October. We asked industry bodies, advisers and the FMA for their views on how the regulator has done its job over the period.
The younger generation of clients who are now in their 30s and 40s has a very different financial outlook than their Baby Boomer parents. Advisers need to retool their client service and advice models to appeal.
Finding the right person to join your financial advisory business can be tough. financialalert spoke with various sized advisory firms about their approach to taking on new advisers.
The findings of this paper suggest that legislated minimum pension withdrawal rates may be too high and lead retirees to run out of money sooner than planned.
A Floor/Upside strategy should form the foundation of an investor's approach to retirement - and the good news is, many advisers already use a variation without realising it.
Growth indicators improved in June, despite equity markets being rattled. In the absence of an inflationary shock, we think equity markets will trend higher.
This week, the FMA announced that three advisers are being brought before the Financial Advisers Disciplinary Committee (FADC). We asked what happens with disputes and what PI cover is appropriate.
It is one of those ideas that come up again and again without ever being properly scrutinised – that a sovereign wealth fund (SWF) like Norway's is a fantastic idea that deserves to be copied elsewhere, even in New Zealand...
The challenge for most advisers is that they've built practices as generalists and aren't sure how to make the transition to become specialists. There are three basic steps.
The Academy Winter Seminar 2013 features four sessions: Get micro about the macro - looking at big risks through the microscope; The Equity Risk Premium; A focus on Australian equities strategies in an objectives-based investing world; and, Equities and Inflation.
The Academy Autumn Seminar 2013 featured five sessions: Market risk; Is Chinese growth a ponzi scheme?; Risk profiling; The approach to risk profiling for retirees; and Using risk factors to evaluate investments and build portfolios.
In 1994, Nelson Mandela was elected President of South Africa. His capacity for forgiveness and sense of humility is a shining example for all humanity.
We asked delegates from the recent PortfolioConstruction Forum Symposium 2013 in Auckland for their key takeouts from the jam-packed, two-day program.
New research suggests that advisers should stop telling Gen X and Gen Y clients to save more now and, instead, simply help them to save more tomorrow.
Investment is often compromised by the quest for easy answers to difficult and involved issues. Risk is one.
As the US economy continues to recover from the GFC, the US Fed faces an almost impossible balancing act. Closer to home, the RBNZ faces an almost impossible balancing act of its own.
This is one of those times when investors should not expect to complacently buy what has worked well recently and achieve good returns.
The Institute of Financial Advisers presented its highest honour, the Outstanding Contribution to the Profession Award, at its annual conference last week.
Investors became more risk-on early in 2013 and ASEAN equity markets were among the biggest beneficiaries.
However, some headwinds have appeared in the form of heightened political risk and pockets of overheating.
Australia is looking at enshrining the term "financial planner/adviser" into law. New Zealand is already a step ahead. We look at the titles advisers are using, what the law allows, and what advisers may call themselves in the future.
Make sure you think about how choices are delivered to your clients - choice architecture can help nudge them in the right direction.
Are low volatility equity funds something investors should be including in their portfolios? There are a range of issues to consider.
Should you have a minimum asset threshold for new clients? Should there be other factors that you look at beyond just assets? How do you communicate your criteria to prospective clients?
China is in the throes of a classic credit bubble, showing all three key signs of any classic bubble. This is a big theme for markets.
A sizeable number of the Disclosure Statements we've reviewed are unnecessarily complicated and are turning a straight forward process into a nightmare.
There are any number of ways to approach and discuss the issue of valuing financial advice. Perhaps, though, it is time to consider it from a slightly different perspective. Could it be that financial advice is worthless because of the client?
It's time we financial planners stopped viewing clients who don't implement as "bad clients" and instead develop the skills to motivate them to do it.
With cash no longer providing the same high returns and income required for investors approaching or already in retirement, Global Investments Forum 2013 brought together selected senior investment professionals spanning the major sectors, strategies and regions of the world.
What we really need from the coming review is policy that addresses retirement income for young New Zealanders.
Is the bull market over for gold? I doubt it. The next phase could be quite explosive, particularly for the gold mining stocks.
A few weeks ago, a small contingent of Kiwi advisers travelled to Sydney to join around 500 practitioners for the annual PortfolioConstruction Forum Markets Summit. We asked the Kiwi delegates how what they heard is shaping the way they construct portfolios.
Could financial advisers who offer comprehensive services be doing a better job? Two recent studies shed a positive light on the potential of the financial planning profession to do right by clients.
Most planners struggle to reach and effectively serve Gen X and Gen Y, tending instead to focus their on baby boomers. But it's quite possible serve at least a fairly wide swath of Gen X and Gen Y.
When looking at Australian stocks, it is important to look at how they're being impacted by shifts within the Australian and global economies.
Investing in yourself is worthwhile for financial advisers – but that message doesn't seem to have got through. Now hard evidence is starting to emerge from overseas that higher education pays for financial advisers.
In a first, an AFA has had his license cancelled by the FMA just weeks after it was granted, and while the FMA and the SFO are still only investigating a complaint against him. Not even David Ross has had his license completely revoked by the FMA. financialalert asked some industry insiders what the case means for other AFAs.
We were very pleased to kick off the new calendar year with our Learning Partners at our PortfolioConstruction Forum Learning Partner Briefing 2013.
The reality is that saying "You can trust me" is actually a terrible way to establish trust, especially when it's done using complex jargon that most consumers don't understand.
It's an regrettable reality that financial advice remains out of the reach of most people. financialalert looked at when it might be practical to advise someone without charging them a fee and the implications...
If you cannot answer that question clearly and quickly, you have a serious marketing problem. Frankly, if you can't answer that question in a meaningful way for a customer, then you probably don't deserve their business.