Asking for referrals doesn't work (Think Advisor)
Advisors, and anyone else who has worked in the service business, know how important referrals are, but no one likes asking for them. Bill Good, chairman of Bill Good Marketing, warns that asking for referrals is a bad idea. Research he conducted at his own firm in 1991 found the only referrals they received came from clients who were unsolicited. Good told Think Advisor, "A referral is a name volunteered by a client as someone needing financial advice. If you ask for it, it's not volunteered." He continued, "Therefore, if you ask for and get a name, it's not a referral." According to Good, referrals will come if you have these six things: Investment performance, the x-factor, client experience, top of the mind experience, client engagement and by promoting referrals.
A recap of the Kansas City Fed's Jackson Hole Symposium (Business Insider)
The Kansas City Fed's Jackson Hole Symposium had a hawkish tone, causing many to speculate a Federal Reserve rate hike could occur at the September 17 meeting. During his prepared remarks, Fed vice chairman Stanley Fischer noted, "Given the apparent stability of inflation expectations, there is good reason to believe that inflation will move higher as the forces holding down inflation dissipate further." He continued, "With inflation low, we can probably remove accommodation at a gradual pace." Other Fed members at the event had mixed opinions. Cleveland Fed president Loretta Mester and St. Louis Fed head James Bullard, both non-voting members, suggested the US economy could sustain a rate hike while Minneapolis Fed President Narayana Kocherlakota said a rate increase wasn't appropriate. Atlanta Fed president Dennis Lockhart was unsure about when the Fed should raise rates.
The Fed impact of $40 oil (Bloomberg)
Seventy percent of economists interviewed by Bloomberg believe a prolonged stay near $40 per barrel wouldn't impact Federal Reserve rate hike plans. According to the Bloomberg survey, those who believed low oil prices would alter the Fed's path were split evenly between a delayed rate hike and a slower hiking path. On Monday, crude oil settled near $49 per barrel, up 29% from its August low.
The tax differences between fees and commissions (Investment News)
Financial advisors earn a living by charging a commission on each trade, or a set fee based on a percentage of the value of their clients' accounts. According to Investment News, "Commissions paid reduced the taxable gain and therefore the capital gains tax paid by the investor." However, fees' tax treatment are more difficult to calculate. Investment News says they are part of the miscellaneous itemized deductions category, which also encompasses things like tax preparation, union fees and unreimbursed business expenses. "All these expenses are combined together, and in total must exceed 2% of adjusted gross income before there is any tax benefit," says Investment News.
Credit card rewards programs might not reward you (Financial Advisor)
Credit card rewards programs can save you a lot of money, but they also can cost you. According to Financial Advisor, The FDIC suggests selecting programs that offer rewards for what you are interested in. "For example, if you are planning a vacation, then a credit card offering a lot of points for airfare and hotel costs may appeal to you," says Susan Boenau, chief of the FDIC's Consumer Affairs Section. She warns to make sure and check the interest rate, especially if you plan to carry a balance. Boenau also told Financial Advisor that consumers should be mindful of any fees.