Switching on the Light: When Clients Don’t Understand Money
by Nancy Opiela
Clients’ misunderstandings about money can be exasperating to financial planners, and surprisingly, the misunderstandings often are not about complicated investments but about foundational concepts such as cash flow and risk. What’s a planner to do?
www.journalfp.net
Between the Issues: Visit the Web Directory for the FPA calendar, online registration for conferences, a direct link to order FPA’s latest study and links to online education.
Voice: A Call to Pioneers
It’s been 30 years. If you were in the College for Financial Planning’s first class of CFP certificants, drop us a line at voice@fpanet.org. (See p. 12 of this issue for more information.)
Departments
Starting Thoughts
Voice
The Observer
Classified Advertising
Advertising Index
Continuing Education Exam
Strategies & Trends
Client Dynamics: Balancing Doing and Being
by Janet Briaud, CFP
Are some financial planners who focus on the “softer side of money” moving too far afield from “core financial advice”? Our columnist argues that those planners shouldn’t disdain investment analysis; they need to balance their being and their doing.
Investment Research: Bad Practices
by William Jahnke
Investment returns are much less predictable than many financial planners are willing to admit to their clients or themselves. Failing to account for this unpredictability in returns and failing to disclose it to clients is bad practice.
Insurance: A Moving Experience in Financial Planning
by David M. Cordell, Ph.D., CFA, CFP, CLU
If insurance is a stepchild to many financial planners, who prefer to focus on investing and other areas, then property and casualty insurance is the stepchild’s daughter.
TechTalk: Do More than Store
by Jo Day and Kevin Day
Are you planning to replace your filing system with an electronic document management system? Don’t stop there! Electronic document management can be much more than a glorified storage system; it can be a way to streamline your entire office workflow.
Contributions
Profiting Today by Planning for Tomorrow’s Succession
by David Goad, ChFC
Planning years ahead for the eventual exit from your practice not only can make for a smoother, more profitable succession tomorrow, but provide tremendous financial and psychological benefits for your practice today.
What’s the Proper Beta? Financial Advisors and the ‘Two-Beta Trap’
by Thomas H. Eyssell, Ph.D.
When considering a particular equity mutual fund for clients, planners often look at two betas: a market-wide beta and a “Best Fit” beta. Be aware that these betas are not interchangeable and each serves a unique purpose.
Generation X: Understanding Their Risk Tolerance and Investment Behavior
by Diane K. Schooley, Ph.D., CCM, and Debra Drecnik Worden, Ph.D.
Despite common perception and anecdotal evidence to the contrary, the members of Generation X—those born in 1964 through 1980—are actually very conservative investors who rely predominately on their own research. They could use some education by financial planners.
The Effect of Consumer Expectations on Portfolio Asset Allocation
by Emmanuel Anoruo, Ph.D.; Vickie L. Bajtelsmit, Ph.D., J.D.; Sanjay Ramchander, DBA; and Marc W. Simpson, Ph.D.
A household’s asset allocation is strongly influenced by consumer sentiment and attitudes, argue the authors, but sometimes in ways financial planners would not predict. This study provides insights into better understanding investor behavior.
