Our firm’s primary experiences with Canadian Incomes Trusts dates back to 2004, though we had been involved on a much smaller scale for a few years prior. About three years ago, we developed an investment strategy around a “high and growing” dividend equity portfolio that was targeted to our RIA clients. At the time, we believed that investors should reduce their exposure to the fixed income markets as bonds may struggle for the next five years or so, a view that has proven correct thus far. (more…)

In “Heart of Darkness” (the book which prompted the 1979 movie, “Apocalypse Now”), writer Joseph Conrad created a compelling tale of power gone unchecked. His story concerns the search for a British company agent named Kurtz whose relentless drive has carried him far outside the rules and boundaries of society.

To a less dramatic degree, managers of super producers in our business may find themselves in the same position as Kurtz’s superiors, having to manage those whose successes have led them to conclude that policies and rules don’t apply to them. (more…)

Investment performance is the most important factor when it comes to satisfying investors, right? Not exactly, according to the most recent study published by J.D. Powerand Associates which reveals that an investor’s relationship with their financial advisor is the most important factor in the investor’s level of satisfaction.
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Mitch Vigeveno, President and CEO of Turning Point in Safety Harbor, Florida, is a well-known industry recruiter with more than 25 years of experience in the financial services business. Mitch has a list of “rules” that skilled managers and owners follow when hiring and retaining top reps. He hopes his list will also help you. (more…)

Following the U.S. equity market declines in 2001, which were accompanied by historically low interest rates, many of my more income-oriented clients began searching for investment vehicles that would produce yields higher than traditional bonds. Resource-oriented shares in U.S.-based Master Limited Partnerships (MLPs) and Canadian Royalty Trusts (CANROY) appeared to be attractive. Both investment vehicles are natural resource related. The main difference, however, is that MLP’s are indirectly tied to the price of commodities and the CANROY’s provide an almost pure play in the price of oil, coal, and natural gas. (more…)

For years, investors throughout Canada, the United States, and elsewhere participated in Canadian Income Trusts, most often for the tax-efficient status they enjoyed. The trust structure allowed the issuing businesses or flow-through entities (FTE) to distribute their operating income to unit-holders and avoid paying traditional corporate taxes in the process. (more…)

BOOK: The Ultimate Gift

AUTHOR: Jim Stovall 9th Edition,
Executive Books, 2006

Help Clients Discuss Wealth, Privilege and Responsibility
Getting clients to open up about their estate planning issues is
a challenge even for the most sensitive of financial advisors. Not a touchy feely type? Well, you’re probably sweating about this stuff frequently. (more…)

Look at just about anyone’s workspace these days and you’re bound to see the same thing: piles and piles of paper…on the desk, on top of the filing cabinet and even on the floor. Paper has seemingly overrun many offices, causing stress, confusion, and a lapse in productivity. (more…)

Over the years I’ve had the privilege of being the “fly on the wall,” hearing both the perspective of broker/dealers seeking qualified professionals and Advisors shopping for a suitable new firm. Not only do I deal with over 70 independent broker/dealers and their recruiters and management, I get to hear prospective Advisors’ uninhibited feedback on why they choose one broker/dealer over another.

As a result, I’ve been able to put together this sampling of some of the many so-called “steering hooks” recruiters and management use to win over Advisors who’ve come knocking on their doors. (more…)

Regulatory Notice 07-43
FINRA Reminds Firms of Their Obligations Relating to Senior Investors and Highlights Industry Practices to Serve these Customers

Executive Summary
One of FINRA’s priorities is the protection of senior investors, as well as Baby Boomers who are at or approaching retirement.1 FINRA’s efforts in this area include investor education, member education and outreach, examinations and enforcement.

The purpose of this Notice is to urge firms to review and, where warranted, enhance their policies and procedures for complying with FINRA sales practice rules, as well as other applicable laws, regulations and ethical principles, in light of the special issues that are common to many senior investors. The Notice also highlights, for the consideration of FINRA’s member firms, a number of practices that some firms have adopted to better serve these customers.

1 For ease of reference, this Notice refers to both categories as seniors unless the context requires amore specific reference.

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