Advisors are not fazed by the impending Department of Labor fiduciary rule, expected to come out today. Sixty-one percent of advisors said they expect little to no impact on their business if the DOL rule passes, according to Russell Investments’ Financial Professional Outlook survey. About one in five advisors are bracing for a significant impact to their business. When asked about factors contributing to changes in their business, 72 percent of advisors cited market volatility, followed by an aging client base (40 percent) and the proposed DOL rule (34 percent). The responses seem to indicate that many advisors could be blindsided by the impact of the rule and the necessary changes they’ll need to make, Russell said. “Indeed, the actions advisors were considering as of the early days of 2016 before the proposed rule came through seem to reflect a combination of unfamiliarity with the proposed rule, an uncertainty about what to do (and this could be a function of where they work), or a ‘I’ll start making moves once I know what game we’re playing’ point of view,” the report said.
No, we’re not talking about a metal band. A group of scientists are working with members of the insurance industry to develop an algorithm that can help predict when a client will die, according to The Telegraph. Funded by a large grant from the Institute and Faculty of Actuaries, the four-year project will be hosted by The University of East Anglia with support from industry giant Aviva. The study will draw on the enormous database of medical data collected by health care providers to “identify key factors affecting mortality” and hopefully develop a new generation of prediction formulas.
New data released today by Hartford Funds shows that the biggest worry Americans have about aging is becoming a financial burden on their family members. Interestingly, younger (between 35 and 54 years old) respondents to the survey were more worried about this, with half citing it as a concern compared with just one-third of older respondents. Respondents’ income levels also correlated with how they felt about the issue—people making $75,000 to $100,000 were twice as likely to worry about being a financial burden on children than those making less. The study also looked at what people are doing to prepare for aging, but few (14 percent) are initiating conversations about their own aging and even less (12 percent) of children are speaking to their parents. This highlights an area of opportunity for advisors who can facilitate the conversations and planning between generations.
University of Southern California basketball walk-on Sam Dhillon only played in six games this season, despite the Trojans’ trip to the NCAA Tournament. That might be because the 6-foot-8-inch junior is a bit too busy with some of his other pursuits. Dhillon, 20, who is a human biology major with aspirations to “cure Alzheimer’s,” also holds a Series 65 license, allowing him to manage other people’s money, CNBC is reporting. He is the CEO of Quest Investment Firm, which he created in 2014, and has 40 clients with $3.5 million in assets under management. “I started investing back in high school,” Dhillon’s story goes. “I bought Facebook stock and did pretty well.” He said he got the idea to become a money manager after a USC football player noticed he wore a nice watch and asked him how he could afford it. “A lightbulb went off,” he said. “I can get paid to have investments for these people.”