One of the critical questions that arise during estate planning is the selection of a successor trustee. While family members and close friends may appear to be the obvious choice, our guest columnist argues that they may not always be the best option. Despite their emotional connection and familiarity with the family dynamics, these individuals often lack the necessary expertise and experience in managing a trust.
Instead, our columnist suggests considering trusted third-party alternatives such as a private professional fiduciary or a bank trust department. These entities specialize in handling the complexities and challenges associated with trust management. By delegating this responsibility to a professional, individuals can ensure that their estate is in capable hands, even in their absence.
Wealth Management Stocks Face Challenges
In other news, wealth management stocks have experienced a downturn this week. Companies like Morgan Stanley, Charles Schwab, and Raymond James have seen a decline in share prices due to concerns over declining client assets and the impact of higher interest rates. Earnings reports from Morgan Stanley revealed slower growth in wealth management and weaknesses in investment banking. However, it's important to note that wealth management stocks typically suffer during market downturns and periods of rising interest rates.
Bank of America Sets Its Sights on Client Growth
On a more positive note, Bank of America has reported significant gains in client growth. As of now, the bank has added an impressive 33,500 new clients this year, with projections indicating that it will achieve a record-breaking number by the end of 2023. In the third quarter alone, Bank of America welcomed 7,000 new clients across its Merrill Lynch and private bank segments.
Despite these positive numbers, Bank of America acknowledged that its wealth business faced challenges due to lower net interest income. However, the overall earnings and revenue surpassed analysts' expectations, highlighting the bank's ability to navigate through obstacles while expanding its client base.
Stay updated with the latest developments in estate planning and wealth management for a more secure financial future.
Tips for acing the CFP exam
The exam to earn the Certified Financial Planner designation is famously difficult. Planners who have passed the test share some tips in this week’s Big Q feature.
"Mine Your Experience" Technique
One advises aspiring CFPs to mine their experience and try to think about a client’s situation that might shed light on a particularly tough question on the test.
Importance of Setting a Studying Schedule
Others stressed the importance of setting a rigorous but realistic studying schedule, considering prep courses, and remembering that the exam touches on an array of topics, but not usually in great depth.
Morgan wins TRO against former advisors
Morgan Stanley has convinced a judge to issue a temporary restraining order against a former team of advisors who left the wirehouse to form an independent registered investment advisor.
Allegations of Misconduct
Morgan Stanley argued that the team, led by Trent Leyda, had taken sensitive information from the firm and that it was actively soliciting its former clients.
Team's Response
Leyda and his team rebutted those claims in court filings of their own, but not before a judge issued an order requiring the return of all Morgan Stanley property and barring them from contacting their old clients.
Secrets of his success
Daniel Wilson, a 26-year industry veteran and one of Forbes' top 100 advisors nationally, leads a $4.9 billion Ameriprise practice in Auburndale, Mass.
Early Passion for Financial Services
Wilson, who sat down with Forbes' Advisor for a recent interview, says he was like Michael J. Fox’s character in Family Ties—reading The Wall Street Journal as a teenager—and knew early on that he wanted to work in financial services.
Success attributed to Team Culture
He says his success stems from the people and the culture of the team he has built, and shares tips for converting clients’ children into clients themselves.
Insights from Richard Jones, a partner at Merrill Lynch’s Jones Zafari Group
Elsewhere this week, we caught up with Richard Jones, a partner at Merrill Lynch’s Jones Zafari Group, which oversees about $35 billion in assets.
The Impact of Geopolitical Events on Markets
The veteran advisor explains why troubling geopolitical events don’t always affect markets that way investors might expect.
Best Career Decisions and Staying Motivated
He also shares the best career decisions he’s made and what keeps him motivated after decades in the business.
Have a great weekend.
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