September 2014 Connections Newsletter

Issue #0914  
September
2014
 
The American College of Financial Services<sup>®</sup> Connections

The American College Welcomes a New President-A letter from Mike Davidson
Mike Davidson Headshot A Letter from Acting President Mike Davidson, MSM, CLU®, CAP®
 
  Dear Students and Alumni,

On October 1st, The American College will welcome a new President and CEO and I will be stepping down as Acting President. Robert R. Johnson, PhD, CFA®, CAIA, has been selected to lead The American College into a new era, continuing to broaden the reach of our College into all areas of financial services.

During my brief tenure as Acting President of this great institution, I have had the privilege of a unique perspective. I can see firsthand the significant achievements of Dr. Larry Barton, CAP®, the visionary leader of The College for the past decade. At the same time, I can see the next step in that vision as I think about where Bob Johnson will take us over the coming years.

It’s hard to think back to where we were in 2003, when Dr. Barton arrived. Under his leadership, we have moved into the digital world, monetized our campus facilities and built our balance sheet, created a PhD program in Financial and Retirement Planning, and have launched six Centers of Excellence to keep our students and alumni one step ahead in a competitive world. The transformation has been one for the record books.

Now, we see nothing but opportunity ahead, as Dr. Johnson will lead us into new markets, new product areas, and new ways of thinking from a position of strength. I can only imagine what our founder Solomon Huebner would think – and how proud he would be – if he could see us now, 87 years later.

We all owe Dr. Barton our gratitude, and Dr. Johnson our commitment of support as we continue to impact our profession for a new generation. With your help, it will be something to see.

With all my thanks,
Mike Davidson Signature
Mike Davidson, MSM, CLU®, CAP®
Acting President and CEO
The American College
 

Millennials: An Untapped Market
  Commonly referred to as “the financially forgotten generation”— similar in size to the Boomers, the Millennial generation faces unprecedented complexity in planning for their financial futures. By 2018, their spending power is expected to top $3.9 trillion, exceeding that of their parents' generation. This presents an enormous opportunity for rising advisors to build relationships with the underserved millennial generation, who are growing both in their careers and income potential.

Consider the following:
•    This group, estimated to be 70 million people born between 1980 and 2000, is similar in size to the baby boomer generation.
•    The oldest Millennials are now 34 years old – representing the average age of a typical new client for financial services products.
Photo of Young Adults
While many advisors are focusing on planning for the retirement of our Boomers, who is making it their mission and purpose to help this generation think about establishing the habits and rituals of sound financial planning? There are endless opportunities to help Millennials make smart investment decisions, securing their financial futures.

Jennifer DeTroye, Executive Director of The Northwestern Mutual Granum Center for Financial Security at The American College, is heading up research on this important topic and notes, “As an industry, it’s time we step out of the anecdotes and into the data. We can either choose to follow the storyline that suggests this millennial generation is riddled with student loan debt, a challenging job market, and ‘against all odds’ circumstances, or we can step into the data that indicates this generation will be 50% of the workforce by 2020, inheriting trillions, and incredibly passionate about securing their own financial future. Millennials have incredible potential, not just financially, but as our bright, responsible future… they need and deserve our guidance.”

For more information on this untapped market and relevant articles and research, please visit: Flashpoint: Financial Principles for Millennials
 
ChFC<sup>®</sup> In The News: 
See What Everyone is Talking About
Ever since The American College announced its revamped ChFC® curriculum, the program has gained much attention from top media outlets. See what some of the industry’s most respected publications are saying in the stories below:

Financial Advisor: The American College Tweaks
Coursework To Reflect Modern Family


PR Newswire: Real World Advice Serving America's Diverse Financial Planning Needs: The American College Introduces Redesigned Chartered Financial Consultant (ChFC®) Designation

Think Advisor: American College Retools ChFC® Program
To watch the archived webcast featuring Dr. Craig Lemoine, CFP® discuss the changing landscape in America today and how The American College has redefined their curriculum to help advisors all across the country serve the ever-changing American demographic, visit: ChFC® Webcast featuring Dr. Craig Lemoine, CFP®
  ChFC: Advanced Planning, For every person, every need.  
  With over 500 people in attendance, this year’s Conference of African American Financial Professionals was a huge success! Once again, leading companies from across the financial services industry came together to further the education, advancement and heritage of African American financial professionals at this exciting industry event. From keynote speakers Daymond John, Ahmad Givens, Guy Walker and Bonnie St. John, to the dynamic discussions and educational workshops, each year’s conference keeps evolving to be more inspirational and important for presenters and attendees alike.

Thank you to our sponsors for helping to make this such a fantastic event and congratulations to all for your continued support!
 
 
Why Do Mutual Fund Expenses Matter? A Research Paper by Dr. David Nanigian
  While many people were celebrating Independence Day, on July 4th, 2012, Dr. David Nanigian was presenting his ground-breaking research paper, “Why Mutual Fund Expenses Matter” at the prestigious World Finance Conference in Rio de Janeiro. David’s paper was presented along with other professors from leading business schools around the world, including INSEAD, IESE and the London School of Economics.

In his paper, Dr. Nanigian tackled one of the major unresolved questions about mutual funds: Why a negative relationship exists between price and quality in the market for mutual funds. Drawing upon prior research in behavioral finance, Nanigian developed a theory that relaxed monitoring standards by fund investors explain much of the perplexing negative price-performance relationship. He also showed that the more capital an investor has at stake in a fund, the more intensely he or she will monitor the mutual fund. To download the entire paper, visit: Why Do Mutual Fund Expenses Matter? (PDF)
 
News & Events

Alumnus of The Month

Michael F. Broderick

Michael F. Broderick
CFP®, CLU®, ChFC®, CAP®

Read more

Upcoming Events Sponsored by The American College

Detroit Live: Thursday, September 11th, 2014

Alumni Travel-Learn Cruise: October 6-16, 2014

President's Dinner: Friday, December 5th, 2014

In The News

The Wall Street Journal–What Should Couples Do When Downsizing in Retirement?

The Wall Street Journal–How Should the Government Change Social Security?

The Globe and Mail–Three Retirement Strategies for a Low-yield World

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