Insurable Interest Canadian Insurance Blog

What You Need to Know The 4% rule seems like a simple solution for retirement spending, but there are pitfalls. The best approach is one that adjusts for actual market returns and real-life inflation rates. For investors who prefer a formulaic approach, a better alternative to the 4% rule is to use the IRS’ RMD table. Clients save for retirement over the course of their working careers.  While retirement income planning can be complicated given the variety of available options, it’s typically easy to advise clients about how much they should be saving. Most clients should be advised to contribute the maximum amount they can afford to tax-preferred retirement accounts.  The advisory picture becomes much more complex when it comes time to start drawing from those accounts. Once required minimum distributions are satisfied, clients often wonder how much they can safely withdraw to minimize the risk of running out of money during retirement.  The “4% rule” is an often-cited strategy. Most retirees who rely primarily on retirement accounts for income during retirement will have difficulty adhering strictly to the rule’s assumptions. Although many clients like the formulaic approach of the 4% rule, it’s critical that advisors explain the fine print...

What You Need to Know The S&P 500 was on pace for its worst day since January, Treasuries climbed, and the VIX spiked to levels last seen in October. JPMorgan Chase & Co. and Wells Fargo & Co. both reported net interest income — the earnings they generate from lending — that missed estimates amid increasing funding costs. Bond markets are now pricing two rate cuts by the end of the year, compared with six just three months ago, yet both the S&P 500 and the Nasdaq 100 are still hovering near record highs. The global financial world was roiled by a flare-up in geopolitical risks that sent stocks sliding — while spurring a flight to the safest corners of the market such as bonds and the dollar. Oil rallied. Equities fell at the end of a wild week on a news report that Israel was bracing for an unprecedented attack by Iran on government targets. Approximately 40 launches were identified crossing from Lebanese territory, some of which were intercepted, the Israel Defense Forces said in a post on X. The S&P 500 was on pace for its worst day since January. Treasuries climbed as the greenback hit the highest in 2024....

Wells Fargo & Co. missed estimates for net interest income in the first quarter, a sign that muted loan growth and increased pressure to pay out more for deposits are eating into the benefit of higher rates. The firm earned $12.2 billion in NII in the first three months of the year, according to a statement Friday, down 8.3% from a year earlier and slightly less than the $12.3 billion analysts expected. Still, overall revenue topped estimates, aided by an increase in investment advisory fees and brokerage commissions. “The investments we are making across the franchise contributed to higher revenue versus the fourth quarter as an increase in noninterest income more than offset an expected decline in net interest income,” Chief Executive Officer Charlie Scharf said in the statement. Big banks’ first-quarter results offer the latest window into how the U.S. economy is faring amid an interest-rate trajectory muddied by persistent inflation. Rivals JPMorgan Chase & Co. and Citigroup Inc. also reported quarterly results Friday, with Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley set to follow next week. Like Wells Fargo, JPMorgan reported NII that slightly missed estimates. Shares of Wells Fargo, up 15% this year...

Financial advisors have long bemoaned restrictions on client testimonial. But after more than a year since the Securities and Exchange Commission Marketing Rule became mandatory, still only 7% of advisors are using client testimonials. Many are waiting for the SEC to bring down the hammer on an early adopter or two so there’s more clarity around what will trigger commission’s ire. In the meantime, however, advisors are missing out on more than the critical social proof needed to show how they offer differentiated value. They’re also missing a powerful method to forge deeper connections with clients and create a more impactful client experience. The practice of asking clients for their thoughts and opinions, and showing that you value that input is a requirement in a healthy client relationship. From collecting testimonials to how you showcase and share them, there are several key steps in the testimonial process where you can deepen your relationship with you clients. 1. Practice intentional onboarding. During your onboarding meeting, once a client has signed their documents, have a short conversation about why they chose you. What are their intentions in choosing a financial planner and why did they choose you? What was it about you...