On this episode of The Resilient Advisor Podcast, I am joined by Ed O'Brien who is the CEO of eMoney Advisor. He shares his thoughts on what The Future of the Financial Advisor looks like. His firm is releasing a report on the "Flux-Gen Advisor" in the 4th quarter that you will want to get your hands on when it is released.
How could Artificial Intelligence play into the advisor-client relationship?
Trends in the planning-focused community as it relates to preparing for volatility and the next bear market?
What the role of the financial advisor looks like in 2028.
The integration of eMoney with portfolio management systems such as Black Diamond and Orion.
potential consolidation coming in fintech and what would that look like for the advisor and client?
What he would you say to clients who may still feel as though a pure investment advisory relationship is sufficient for their family.
Follow eMoney Advisor on Twitter: https://twitter.com/eMoneyAdvisor
eMoney Conference Information: https://info.emoneyadvisor.com/summit-2018
On this short episode of The Resilient Advisor Podcast, I outline the implications of the GICS Reclassification for financial advisors.
Show Notes:
Advisors who use sector index and index products developed by Standard and Poor’s and MSCI are going to be affected by this change.
These changes will have an impact on about 40% of the S&P 500’s entire market capitalization. It will impact roughly $17.6 trillion in market capitalization.
This includes 10% of the S&P 500 Index market cap,
100% of the telecommunications services sector,
22% of the consumer discretionary sector and
21% of the sector technology sector.
These revisions were announced in January and were implemented at the close of business on Sept. 28, 2018,
Note, The MSCI Equity Indexes will reflect these changes as part of its semi-annual index review in November 2018.
For some historical context, The existing classification system, which was developed in 1999. This change was overdue as they reflect the natural evolution of these sectors and underlying companies.
If you find yourself needing to explain the changes to a client, simply point out that ‘The continued integration of media and internet and telecommunications, has led to clear industry consolidation through mergers and acquisitions.”
HERE IS WHAT YOU NEED TO KNOW - Directly from Dividend.com’ report on the changes:
Telecommunications Services
Under the proposed changes, the telecommunications sector will be renamed communications services – a more inclusive banner that accounts for content developers and other media. The new sector will include existing telecommunications companies as well as enterprises from the media industry group, which currently falls under the consumer discretionary sector. This category will also include companies from the internet and direct marketing retail sub-industry along with some big companies currently classified in the information technology sector, including Alphabet Inc. (GOOG ) and Facebook Inc (FB ).
Consumer Discretionary
The internet and direct marketing retail sub-industry, which is currently listed under consumer discretionary, will be updated to include all online marketplaces and e-commerce companies. Companies such as Alibaba Group (BABA ) and eBay Inc. (EBAY ) will fall under this category.
Information Technology
Finally, the information technology sector will undergo a major overhaul with the internet software and services industry being renamed internet services and infrastructure. Companies such as Shopify Inc. will be impacted. Cloud computing companies currently classified under internet software and services will receive a new category called application software. As a result, the internet software and services industry and sub-industry will be discontinued.
My friend Brandon Hatton of The Hatton Group at Raymond James in Atlanta sent over a detailed report produced by Blackrock on these changes. I recommend connecting with your Blackrock rep and getting a copy if you need more details on these changes. Here are their Key Investor Implications:
Direct Impact: Investors who own funds that follow, or are benchmarked to, indexes that follow GICS.
Secondary Impact: Sector rotation, diversification and hedging models that adopt sector constraints.
Tertiary Impact: Active managers whose investment process monitors sector fundamentals, factors, and trends.
Lastly, if you are a dividend investor, the telecommunications sector provided yields north of 5%. The new communications services sector will yield an average of less than 2%
I hope that this podcast was useful as you look at your 4th quarter allocations and start planning for 2019.
Connect With Ivan
Personal LinkedIn: https://www.linkedin.com/in/ivanbarretto30/
Business: https://www.linkedin.com/company/25040493/
Twitter: https://twitter.com/RIAComplyCEP
1. Why cryptocurrencies are revolutionary?
2. What is tokenization?
3. Why do assets need to be tokenized?
4. What is the legal landscape of tokenization?
5. How does Fungible works?
6. What is the most exciting part of Tokenization?
Matt got started in the financial services industry 20 years ago as a certified life and business coach. As he became immersed in his client’s biggest needs, he built his knowledge and expertise as a financial branding and social media expert. More recently, Matt has added podcasting to that list.
Matt respects how tough it is to be great and effective at marketing while running a practice, living a life, and loving a family. He teaches advisors how to be themselves, let their passions shine through and create strong brands that resonate with ideal prospects and centers of influence.
Matt’s first book “The Social Media Handbook for Financial Advisors” available on Amazon was a big hit. He’s been leading the social wave in financial services for years – teaching top advisors how to be human in an oftentimes inhuman industry. His second book “99 best ideas”, was an Amazon bestseller and is filled with marketing ideas.
In his list of accomplishments, Matt has served in the Navy, is a trained therapist, been a radio host, and worked as a financial professional too. Matt’s breadth of hands on experience positions him superbly to help financial professionals build the marketing side of their practices. He’s been there, done that and has the T-Shirt.
Matt is married with two twin teenage boys. They are avid swimmers. Oh, and Matt’s dogs are a big ole St. Bernard and a rescue pitbull mix named Luke (after the Jedi).
Mark Yusko is the CEO and CIO of Morgan Creek Capital Management. He is quickly becoming a thought leader on Blockchain and all its applications.
In this interview we discuss:
How ICO's work.
Security Tokens 101.
Moving from the analog age into the digital age.
Tokenizing the real assets.
14-year technology cycles.
Implications to the financial advisory business.
How Blockchain will actually create new jobs.
Why the Blockchain ETF's may not provide the exposure you are looking for today.
Why owning the companies that support Blockchain makes sense.
Connect With Mark
Twitter: @MarkYusko
Website: www.morgancreekcap.com
About Mark (From his website)
Mark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. Prior to forming Morgan Creek, Mr. Yusko was President, Chief Investment Officer and Founder of UNC Management Company, the Endowment investment office for the University of North Carolina at Chapel Hill, from 1998 to 2004. Throughout his tenure, he directly oversaw strategic and tactical asset allocation recommendations to the Investment Fund Board, investment manager selection, manager performance evaluation, spending policy management and performance reporting. Total assets under management were $1.5 billion ($1.2 billion in endowment assets and $300 million in working capital). Until 1998, Mr. Yusko was the Senior Investment Director for the University of Notre Dame Investment Office where he joined as the Assistant Investment Officer in October of 1993. He worked with the Chief Investment Officer in all aspects of Endowment Management. Mr. Yusko received his Bachelor of Science Degree, with Honors, in Biology and Chemistry from the University of Notre Dame and a Master of Business Administration in Accounting and Finance from the University of Chicago. Mr. Yusko is an Advisory Board member of a number of private capital partnerships and alternative investment programs and has served as a consultant on alternative investments to a select group of institutions. Mr. Yusko is an Investment Committee member of the MCNC Endowment, President and Chairman of the Investment Committee of The Hesburgh-Yusko Scholars Foundation at the University of Notre Dame, and President and Head of the Investment Committee of the Morgan Creek Foundation.
LinkedIn: https://www.linkedin.com/in/larry-miles-67a04221/
AdvicePeriod Twitter: https://twitter.com/adviceperiod
Larry Miles is a Principal at AdvicePeriod, a firm whose mission is to reinvent wealth management. His primary focus is providing strategic leadership for growth and profitability, while driving and maintaining a culture of excellence.
Over a nearly two decade career, Larry has developed a wealth of leadership and business development experience across national market management, coaching, and professional growth. His teams have won “#1 Best Place to Work in Los Angeles” two different years at two different companies—the only leader to ever accomplish this. Prior to joining AdvicePeriod, Larry was President of BNY Mellon’s largest Western Region. Larry started his career as an executive of a large independent RIA, where he facilitated a successful sale of that business to City National Bank.
Larry earned a BA from Amherst College, a Master of Science from the London School of Economics, and is a member of Young Presidents Organization. He was named to InvestmentNews' 40 Under 40 list last year, and is authoring a book on how to build the professional service firm of the future, due out later this year.
Website: hopkinsretirement.com
Twitter: @retirementrisks
Professor Hopkins is recognized as one of the leading retirement planning experts in the United States and, in 2015, was selected by InvestmentNews for its list of the top 40 financial services professionals under the age of 40. Professor Hopkins has also contributed numerous articles for periodicals including Villanova Law Review, Nebraska Law Review, and Hastings Science & Technology Law Journal, and has authored articles published by the American Bar Association and the Pennsylvania Bar Association.
Professor Hopkins received his Bachelor of Arts degree in political science at Davidson College. He then attended Villanova University School of Law, where he obtained his JD and graduated with honors. He later received his MBA from the Villanova University School of Business. Professor Hopkins also holds an LLM from Temple University and two financial planning designations from The American College: the Chartered Life Underwriter® (CLU®) and Retirement Certified Professional® (RICP®).
Charles Sherry is a financial writer, analyst and speaker who is an expert on the topic of leveraging communication to increase advisor visibility. On this podcast we go deep on client communications issues during periods of market volatility.
LinkedIn: https://www.linkedin.com/in/charlessherry/
Twitter: https://twitter.com/CharlesSherry
Brett’s not just a teacher, he is an active financial planner, just like you. He runs a successful Registered Investment Advisor, Main Street Financial Solutions, LLC(link is external), where he manages and advises his own clients.
Brett’s advice and feedback is rooted in real world, real time experience. Brett doesn’t just teach, he puts his words into action. He is also an independent financial planner, so he can provide timely, unbiased options and opinions.
A dynamic speaker and entertaining teacher(link is external), his insights and instruction will be your best preparation for taking the CFP Board Exam. If you already have your CFP certification, he provides the kind of real world support you need through his online Continuing Education and fosters your knowledge to help drive your business to the next level.
Not only is his instruction and feedback informative and noteworthy, Brett is also easily accessible to his students. By signing up for his classes or audio updates, you will have his cell phone number and his e-mail address, giving you the individual feedback you need to better your career and your business.
Brett's live courses include -
If you want the best instruction from the best teacher and the support and guidance you need to make your career the best it can be, partner with Brett Danko today.
A 24-year financial-services industry veteran, Mark is a retirement-planning expert with extensive experience in investment-portfolio design, wealth-distribution strategies, income- and estate-tax planning, and mergers and acquisitions. Mark joined Creative Retirement Planning, Inc., in 1996, after spending te early part of his career at Merrill Lynch. Today he is instrumental in serving clients across the country.
Mark earned a Baccalaurate Degree in Finance in 1989 at State University of New York New Paltz. He also has a certificate in Investment Decisions in Behavioral Finance from the Harvard Kennedy School of Government and became a Certified Mergers-and-Acquisitions Advisor at DePaul University.
Econologics and the Econologics Institute
What is a Private Practice Millionaire?
The 3 Roles of a true business owner:
Technician - Be good at what you do
Executive - Managing people with a common purpose
Owner - Own your economic well being
Maxims of a Private Practice Millionaire
J.R. Rieger is the Global Head of Fixed Income Indices at S&P Dow Jones Indices. He joins me on the podcast to discuss:
Active vs Passive fixed income challenges and opportunities
Fixed maturity date ETF's
Munis vs Corporates in a rising interest rate environment
Individual bonds vs Mutual Funds vs ETFs
Phil Flakes is the CEO of Succession Link, a firm that specializes in peer to peer transactions for financial advisors, insurance practice and accounting firms. There are 50 potential buyers for every seller in the market. Phil and Jay Coulter discuss current M&A trends that you need to know if you are considering a transaction this year.
Bill Winterberg is founder and president of FPPad.com and is a respected personality in the financial planning industry. Bill is probably the only fintech vlogger in the United States (see the YouTube channel) and is widely recognized as an independent authority on the subject of technology in financial services.
Bill maintains the CERTIFIED FINANCIAL PLANNER™ certification and has past industry experience as a Registered Representative and a Registered Investment Adviser.
In 2014, Bill was recognized as a 40 Under 40 Honoree by InvestmentNews. He was also named to the 2013 IA 25 list of the most influential people in the financial services profession by Investment Advisor Magazine.
Bill is the host of FPPad Bits and Bytes, a weekly video broadcast covering technology news and information for financial professionals. He is a sought after keynote speaker who provides an objective and unbiased perspective of technology trends in the industry. Bill provides technology commentary for the Journal of Financial Planning and was the monthly technology columnist for Morningstar Advisor.
Prior to entering the financial services industry, Bill was an embedded software engineer for Hewlett-Packard Co. and LeapFrog Toys.
Bill lives in Atlanta, GA with his wife and seven-year old son.