Starbucks Asks Customers to Leave Guns at Home

Brent Lewin/Bloomberg via Getty Images Coffee chain Starbucks has asked U.S. customers to leave their guns at home after being dragged into an increasingly fractious debate over U.S. gun rights in the wake of multiple mass shootings. While many U.S. restaurant chains and retailers don't allow firearms on their properties, Starbucks' policy had been to default to local gun laws, including "open carry" regulations in many U.S. states that allow people to bring guns into stores. In August, this led gun-rights advocates to hold a national "Starbucks Appreciation Day" to thank the firm for its stance, pulling the company deeper into the fierce political fight. Locations for Starbucks Appreciation Day events included Newtown, Conn., where 20 children and six adults were shot dead in an elementary school in December. Starbucks (SBUX) closed that shop before the event was scheduled to begin. Chief executive Howard Schultz said in an open letter to customers late Tuesday that Starbucks Appreciation Day events "disingenuously portray Starbucks as a champion of 'open carry.' To be clear: we do not want these events in our stores." The coffee chain didn't, however, issue an outright ban on guns in its nearly 7,000 company-owned cafes, saying this would potentially require staff to confront armed customers. The Seattle-based company hoped to give "responsible gun owners a chance to respect its request," Schultz said. The CEO told Reuters the policy change wasn't the result of the Newtown Starbucks Appreciation Day event, which prompted the Newtown Action Alliance to call on the company to ban guns at all of its U.S. stores. Nor was it in response to the mass shootings this week at the Washington Navy Yard. "We've seen the 'open carry' debate become increasingly uncivil and, in some cases, even threatening," Schultz wrote, noting that "some anti-gun activists have also played a role in ratcheting up the rhetoric and friction," at times soliciting and confronting employees and patrons. "We found ourselves in a position where advocates on both sides of the issue were using Starbucks as a staging ground for their own political position," said Schultz, who in the past has willingly waded into the public debate over the U.S. national debt and gay marriage. Schultz said more people had been bringing guns into Starbucks shops over the last six months, prompting confusion and dismay among some customers and employees. "I'm not worried we're going to lose customers over this," he told Reuters. "I feel like I've made the best decision in the interest of our company."

Find out: Which investor you shouldn't be

Your investment style is an extension of your own personality. A calmer demeanour would most probably have a conservative approach to investing and would choose safer deposits over riskier returns. Their approach would be in stark contrast to the route adopted by the hyper lot who take risks hoping it results in higher returns. And there are also those that are comfortable with striking a balance between risk and return: the moderates.

No matter which style of investing you choose for yourself, there are a few personality traits that are best kept away when managing your money. So, while it is very interesting to note the kind of investor that you are (or could be), it is probably more enlightening to realize the kind of investor that you should never turn into. Here are three types of investors that you should be wary of: (We hope they don�t seem familiar to you!)

The Hoarder

Its one thing to stock up on the best sales in town, but it�s really quite another to pack your house with so much that you probably have to sleep on the porch! That�s precisely the problem with the Hoarder.

Characteristic: He is so carried away with accumulating all possible investment avenues that he simply doesn�t have the time to focus on reviewing his portfolio and is most often stuck with funds that he could do without. His portfolio would probably resemble a sort of supermarket of funds, complete with a section on new launches (NFOs) and cash-backs (Dividend paying funds). On the face of it, the Hoarder might seem like the eternal optimist, clinging on to a fund even when it has repeatedly disappointed over the years. However, do not confuse his lack of reviewing to be optimism. The only real reason that the Hoarder stays with a poor performing fund is because he is too busy adding some more to his portfolio.

Word of Advice: Dear Hoarder, don�t make your investment strategy an end-of-season sale. Remember, the only things that can grow in a hoarded space are Cobwebs. May be its time for you to clean out the closet!

The Bundle of Nerves

The Bundle of Nerves is always looking for the slightest movement in the market to drive him into action, either to add a new fund or to let go of an old one. Keeping his portfolio constant is not his style. And, yes, he keeps his financial advisor on his speed dial.

Characteristic: The Bundle of Nerves doesn�t need caffeine to stimulate him; a minor market fluctuation should do the trick. He believes that �Change� (or rather Churn) is the key to having a successful portfolio. An avid follower of investment shows, stock market predictions and financial channels� minute-by-minute update, the Bundle of Nerves needs to see constant movement in his investments to feel at ease � either by increasing or reducing the number of his funds. The Bundle of Nerves lacks the most important skill in investing: Patience!

Word of Advice: Dear Bundle of Nerves, that uncomfortable, edgy feeling that you go through every time the markets move isn't going anywhere -- until you do something about it. It's time to figure out if the constant changes are worth keeping you up and pacing the floor at all hours. May be it�s time to slow down a little. The next time you think of a portfolio shuffle, count to three. Thousand.

The Sitting Duck

The Sitting Duck is just plain nice! Financial jargon does not make sense to him, and write-ups in financial dailies appear alien, and none of the financial expert columns he wrote to relevantly answered his query, yet he is more worried about not doing enough to be an ideal investor to an omnipotent and benevolent advisor.

Characteristic: The Sitting Duck is excited about investing, and he trusts blindly. Most first time investors believe that their financial advisor or investment guru will have an answer for absolutely everything related to investments. It takes them a while to understand that their advisor too is human, and that it is only human to err. It helps to note that the part in the discussion where the investor is asked for his views on the proposed �get-rich-quick� plan also offers scope for refusal. The Sitting Duck fails to see that a proposal proposes, and that he has the absolute right to dispose of it.

Word of Advice: Dear Sitting Duck, if it feels like you're being cheated and looks like you're being cheated, take it for granted. You are being cheated. Don't let it continue. The next time you sit with your advisor to discuss a new plan, keep your cell phone handy, and have a friend call you. It's up to you to decide whether it's an 'emergency' or 'a wrong number.'

While every individual has different objectives, beliefs and level of knowledge, whatever type of investor you are, we hope you are not a hoarder, a bundle of nerves or a sitting duck. We�ve told you about what type of an investor you should not be, so let�s focus on traits you can follow to become an ideal investor:

- Adopt a long-term perspective when it comes to investing your hard earned savings. Assess your income and the financial goals you would like to achieve, also understand the level of risk you are willing to take.

- Once you have decided the amount you want to invest, and calculated the risk you can take, choose the investment product carefully. Click this link to learn how you can choose a mutual fund.

- If you are investing through an advisor, ensure that he is focused on your financial objectives, and is not trying to work on his goals at your expense. Before you sign the dotted line, make sure to ask your financial advisor some important questions.

- As a long-term investor, you shouldn't panic when your investments experience short-term movements. When tracking the activities of your investments, you should look at the big picture instead of small hurdles.

- And most importantly, remember that there are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it.

There are exceptions to every rule, but we hope that these tips and common-sense principles we've discussed do benefit you. We�ll cover more on how you can become an ideal investor in our upcoming articles. Remember, just as your personality reflects in your investment style, the success of your investments would reflect in your lifestyle. Be a confident, sensible and long term investor.

Happy Investing!

Disclaimer: The data/information in this article is meant for general reading purpose only and not meant to serve as a professional guide / investment advice for readers. This article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. None of The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits in any way from the data / information / opinions contained in this article.

Mutual Fund investments are subjected to market risk. Please read the Scheme information document and Statement of Additional Information carefully before investing.

SEI Investments Held at Outperform - Analyst Blog

On Jul 3, 2013, we reiterated our long-term recommendation on SEI Investments Co. (SEIC) at Outperform based on its encouraging capital deployment activities and robust asset inflows. Additionally, significant improvement in its organic revenue generation capacity over the past several quarters is expected to act as a positive catalyst.

Why Outperform?

SEI Investments is a sound asset for yield-seeking investors. Over the past several years, the company has been increasing its dividend every year. In May 2013, the company hiked its semi-annual dividend by 25% to 20 cents per share. It also extended the share repurchase program by $100 million, which increased the total shares to be repurchased to $139 million.

Apart from broad diversification and organic growth prospects, SEI Investments has a strong presence across the globe mainly in North America and Europe. Moreover, the company's diversified products and revenue mix is expected to enable it to adapt easily to the changing needs of the clients and continue to boost its top line.

SEI Investments maintains a robust asset inflow. In the past several years, the company recorded a rising trend in its assets under management and administration. Moreover, due to the current stabilization of the equity markets, asset inflows are expected to significantly contribute to its earnings growth.

Moreover, SEI Investments' first-quarter 2013 earnings surpassed the Zacks Consensus Estimate. Results benefited from top-line growth, partially offset by higher expenses.

For SEI Investments, the Zacks Consensus Estimate for 2013 remained unchanged at $1.44 per share over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 0.6% to $1.75 per share over the same time frame. This company currently carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

Some other banks that are worth considering include Noah Holdings Limited (NOAH) with a Zacks Rank #1 (Strong Buy) and Ameriprise Financial, Inc. (! AMP) and Artisan Partners Asset Management Inc. (APAM) with a Zacks Rank #2 (Buy).

Futures Rise On China Data, Initial Jobless Claims At Five-Year Low

Stocks looked poised to open higher on Thursday, snapping their recent losing streak, on the back of a strong jobs report and upbeat data from China.

The Dow Jones Industrial Average, the Nasdaq, and the S&P 500 were all ahead 0.4% at recent check.

The Labor Department said that initial jobless claims increased 5,000 to 333,000 in the week ending August 3, better than the 339,000 economists were expecting.

Moreover, the four-week moving average, a measure that smooths out the volatility of weekly reports, fell by 6,250 to 335,500, the lowest level since November 2007.

"With jobless claims hovering near multi-year lows, there is reason for workers to feel more confident in their prospects for continued employment," writes Plante Moran Financial Advisors' Chief Investment Officer Jim Baird. "Having said that, with the economy still mired in a sub-2% growth trend, the potential for job creation to meaningfully accelerate is limited."

"Overall, recent economic data has been somewhat mixed, but the trend is generally a positive one in several areas of the economy.  Consumers have proven their resilience throughout the first half of the year, housing remains solidly in recovery, and the manufacturing sector appears to be emerging from its funk.  The next several months may provide the key to whether or not growth accelerates heading into year-end as widely anticipated, or whether that surge will fail to materialize."

China trade data was also surprisingly strong, showing both imports and exports rose last month, whereas both had fallen in June. Imports jumped 10.9% in July after a 0.7% drop the month before, while exports rose 5.1% following a 3.1% fall in June.

Economists were expecting the figures to reverse June's slides, but the results still beat their expectations.

In corporate news, Tesla (TSLA) was surging nearly 15%, following on Wednesday night's gains, after reporting a surprise second-quarter profit.

Green Mountain Coffee Roasters (GMCR) was falling nearly 6% as investors digested its mixed after hours third-quarter report.

Mondelez International (MDLZ) climbed 2.4% on its better-than-expected second-quarter earnings.

McDonald's (MCD) was edging ahead 0.4% as same-store sales were up 0.7% in July.

Dean Foods (DF) fell 4% as it swung to a second-quarter loss and narrowed its guidance.

Does Facebook Want to Know If You "Like" Its Executive Pay?

If Facebook (NASDAQ: FB  ) shareholders want to give their two cents on executive pay packages, they're going to have to wait three more years to do it.

According to proxy vote results filed in an 8-K on Thursday, the vast majority of votes cast at Facebook's annual shareholder meeting indicated a preference to hold a "say on pay" vote only every three years.

But do these results indicate the preferences of average outside shareholders? I think not.

Final tallies
Facebook reports that the voting tallies on its "say on frequency" votes were as follows:

One Year: 533,816,915 Two Years: 14,888,902 Three Years: 5,558,676,699 Abstentions: 6,553,502 Broker Non-Votes: 653,253,525

A closer look
It's clear that the vast majority of votes cast indicated a preference for holding a "say on pay" vote only every three years. However, a closer look suggests that average outside shareholders prefer to have an annual say.

According to the 8-K filing, there were 536,654,614 B shares present at Facebook's meeting in person or by proxy. Now, recall that Facebook's dual-class voting structure dictates that B shares get 10 votes per share, while A shares – of which there were1,400,635,758 present -- only get one vote per share.

Given that most B shares are owned by management (and all are owned by insiders), I believe we can assume that they were all cast according to management's recommendation for a three-year "say on pay." If this is indeed the case, then only 192,130,559 A shares -- about 13.7% -- were cast in favor of a triennial "say on pay" vote.

Certainly not a ringing endorsement.

Management's flawed argument
In its 2013 proxy statement, Facebook's board argues, "a triennial vote complements our goal of creating a compensation program that enhances long-term stockholder value" and that "[t]riennial votes will allow our stockholders to evaluate the effectiveness of [our] long-term compensation strategies and related business outcomes of our company for the corresponding period, while avoiding over-emphasis on short-term variations in compensation and business results."

Here's why I think that line of thought is particularly flawed in Facebook's case.

The voice of average outside shareholders is already dramatically diluted by its dual-class voting structure, which I believe already makes for proxy voting results that favor management. Reducing the "say on pay' vote to every three years further dilutes the voice of shareholders. When shareholders are dissatisfied with their executive pay strategies, their disapproval becomes more compelling if it is reiterated on a yearly basis.

Consider Nabors Industries, where a majority of shareholders voted against the company's executive compensation packages for the third year in a row. I believe their message is all the more powerful given its repetition. By only allowing a triennial vote, Facebook is narrowing shareholders' opportunities to express their dissatisfaction, making it all the more difficult for them to put constant pressure on management to better represent shareholders.

Warning to investors
I believe investors should always be wary of businesses with a dual-class voting structure -- even at companies like Google, which gave its shareholders much better returns after its first year as a public company than Facebook did. At these companies, there's always a risk that those who control the vote will see the company as belonging to them rather than to shareholders as a whole.

On the other hand, there is some merit to the argument that shareholders with a short-term mentality can push management to do things that compromise long-term returns. This is one reason I actually embrace the dual-class voting structure at Berkshire Hathaway -- especially given that Berkshire doesn't give insiders exclusive access to the shares with the most voting power. Also, Warren Buffett doesn't just inspire confidence with his track record of building strong gains for investors. His notorious candor with his investors and his willingness to solicit public  challenges to his leadership and to offer thoughtful answers to those challenges give me confidence in the company's future performance, even though my B shares don't give me the same voting power as those with A shares.

When evaluating potential investments with a dual-class voting structure, I urge investors to pay particular attention to management's attitude toward shareholders. If management ignores dissenting views and tries to limit opportunities to present them (as Facebook has done by limiting the "say on pay" vote to once every three years), I believe investors should be reluctant to invest.

Why Lloyds Banking, TUI Travel, and Smiths Group Should Lag the FTSE 100 Today

LONDON -- After finishing above the 6,600 level for 14 days in a row, the FTSE 100 (FTSEINDICES: ^FTSE  ) finally fell below it today, dropping 59 points, or 0.89%, to 6,597 by mid-morning. But even if it should close today at that level, it would still end the month 165 points up on its April 30 close to complete 12 consecutive monthly gains.

But which companies are holding back the FTSE 100 today? We look at three that are slipping.

Lloyds
Shares in Lloyds Banking Group have slipped 0.2% to 62 pence this morning after the bank announced the sale of a portfolio of U.S. residential mortgage-backed securities for £3.3 billion. The sale, to a number of institutions, will bring Lloyds a pre-tax gain of £540 million, with the assets having had a book value of £2.7 billion.

The sale will boost the bank's common-equity tier 1 capital ratio by 47 basis points to a £1.4 billion capital equivalent, and it will also lift its core tier 1 ratio by 33 points to a £950 million equivalent. But even after today's small fall, the Lloyds share price is still up about 140% over the past 12 months.

TUI Travel
TUI Travel shares have dropped 1% to 359 pence on the announcement of a proposed purchase of new aircraft. Subject to shareholder approval, the firm has committed to buying 60 new Boeing 737 MAX planes, with options on a further 90. The price tag for the committed 60 planes comes to £4 billion, with delivery scheduled for January 2018 until March 2023.

TUI owns and operates six European airlines with a total of 141 aircraft, and its existing narrow-bodied planes will need to be replaced over the next decade. The new fleet will be significantly more fuel-efficient and environmentally friendly.

Smiths Group (LSE: SMIN  )
The Smiths Group share price has had a good year, gaining about 35% over the past 12 months, but it took a 1% dip today after the engineering group responded to press speculation concerning Smiths Medical.

The firm confirmed that it has received a preliminary approach for the division, but at this early stage there is nothing more to add; the approach "may or may not lead to a transaction." The Medical division accounts for nearly 30% of Smiths' turnover, so it would be a significant deal.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5% yield and could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

Google Kicks Microsoft While It's Down

Earlier this month, Apple kicked Microsoft (NASDAQ: MSFT  ) while it was down, opting not to develop a version of iTunes optimized for Microsoft's ambitious new "Metro" interface. The Mac maker likely felt that it wouldn't be missing out on much, especially since the desktop version of iTunes could still be used in Windows 8, while Windows RT was the platform really getting left out in the cold.

Now Google's (NASDAQ: GOOG  )  taking a shot at Microsoft by hindering the software giant's app availability, except this time we're talking about Windows Phone 8 as opposed to Windows 8. The search giant has been subtly trying to sabotage Windows Phone in various ways, including the refusal to make a native YouTube app for its rival's platform. As one of the most popular video content sources on the Internet, YouTube's official absence is a blow, even though there are unofficial and third-party apps available.

That's also in stark contrast to Google's stance with Apple, since it promptly released an official YouTube app for iOS shortly after Apple removed its own pre-installed version last year. It's a good thing for iOS users too, since Google's versions of its apps are actually better than the Apple-made ones anyway, including Google Maps.

Microsoft decided to take matters into its own hands and made its own unofficial version, tapping into available YouTube application programming interfaces, or APIs. Perhaps out of spite, Microsoft also went ahead and blocked all ads, which is YouTube's primary revenue source in the first place. Needless to say, Google was not impressed.

Big G has now sent a cease-and-desist letter to the Redmond giant, which The Verge got a hold of, requesting that Microsoft take down the app and disable existing installs. The ad revenue helps content owners monetize their content, so blocking ads hurts the entire YouTube ecosystem. Without a vibrant community of content creators posting videos, viewers and the world at large could be deprived of discovering the next Justin Bieber. That would be a tragedy.

In response, Microsoft has said it would be "more than happy" to include said ads if Google provides it with the necessary APIs. It seems that Google could theoretically continue blocking a Microsoft-made YouTube app by withholding these APIs, but Larry Page did call for the industry to stop being so negative toward each other, saying that's now how progress is made.

With Microsoft's YouTube app for Windows Phone, the ball is now in Google's court.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Raytheon Delivers 2nd Australian Phalanx System

Waltham, Mass.-based Raytheon (NYSE: RTN  ) has made the second installment on a three-part contract to protect the Royal Australian Navy from bad guys with cruise missiles.

On Friday, Raytheon announced the delivery of its second of three ordered Phalanx Block 1B Close-In Weapon Systems to Australia. The first gun was delivered for installation aboard the new Air Warfare Destroyer (AWD) Hobart last year. This current gun will be installed aboard the AWD Brisbane. The third and final gun will be delivered for installation aboard the RAN's third AWD, the Sydney, next year.

For Raytheon, that will mark completion of its contract to supply the RAN with three Phalanxes for a total purchase price of $35 million -- a little under $12 million apiece. That's a better price than Raytheon gets when it sells the system to U.S. buyers. In 2007, for example, the U.S. Navy and Army ordered up 46 Phalanxes at an average purchase price of about $5 million per gun. On the other hand, last year, the United Kingdom had to pay closer to $13 million apiece when it ordered five Phalanxes.

Raytheon describes the Phalanx as a "rapid-fire, computer-controlled radar, and 20 mm gun system that automatically acquires, tracks, and destroys enemy threats that have penetrated all other ship defense systems." Thus, Raytheon's gun system constitutes the last line of defense between a missile and its prey. More than 890 Phalanx systems have been built and deployed in the navies of 25 nations around the globe.

More Expert Advice from The Motley Fool

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3 FTSE Shares Hitting New Highs

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) has been off its highs for a few weeks now after reaching a five-year top of 6,534 on March 12. The index of top U.K. stocks has been shaken of late by the Cyprus crisis and some weakness in the mining sector, but hovering around 6,400 points today, it's not far off its peak.

But plenty of the index's constituents have been flying in recent months and breaking their own new ground. Here are three setting new records.

GlaxoSmithKline (LSE: GSK  ) (NYSE: GSK  )
We're in unusual times when some of the biggest companies in the FTSE 100 are galloping like small-cap growth shares. But that's what's been happening with GlaxoSmithKline, the fifth-largest company in the U.K.'s top index: GSK's shares have powered up 17% in just three months to hit a new 52-week record of 1,557 pence yesterday.

Even after that, the shares are still only on a forward price-to-earnings ratio of 13 based on December 2013 forecasts, in line with the FTSE 100's long-term average of about 14. And there's an above-average dividend yield of 5% currently expected by City analysts.

Diageo (LSE: DGE  )
The eighth-largest top-flight company, drinks maker Diageo, also broke its 52-week record yesterday, reaching 2,115 pence. And that follows an impressive spell that has taken the share price all the way from 733 pence in March 2009 -- pretty much in a straight line, too.

Who really expects to see a near-three-bagger in just four years from a company reaching a valuation in excess of 50 billion pounds? It doesn't happen often, but it does come at a higher price than average. As a reward for Diageo's steady year-on-year increases in earnings and dividends, the market has valued its shares on a P/E of 20 based on June 2013 forecasts.

Centrica (LSE: CNA  )
At 27th place, the smaller (but still valued at 19 billion pounds) Centrica also set a new 52-week high yesterday and has already beaten it in today, reaching 379 pence per share in early trading. That represents a 24% rise since June last year for the owner of the domestic British Gas brand.

But what makes Centrica's rise even more special is the extra bonus of its dividends. The utilities supplier is one of the FTSE 100's best payers, regularly dishing out yields of 4% to 5% per year, with 4.7% forecast for this year and 5% next.

Finally, if you're looking for high-performing top-drawer shares that should take you all the way to a comfortable retirement, I recommend the Fool's special new report detailing five blue-chip shares. They'll be familiar names to many, and they've already provided investors with decades of profits. But the report will only be available for a limited period, so click here to get your hands on these great ideas -- they could set you on the road to long-term riches.

Even decades of legal protection don't create diversity

(iStock)

Fifty years after the Civil Rights Act mandated equality under the law, the ethnic diversity of the nation's financial advisory business pales in comparison to the demographics of the population.

About 64% of Americans are white, according to the 2010 Census; about 92% of advisers are white, according to the Securities Industry and Financial Markets Association.

Some might argue that the population of wealth managers is white because that's where the wealth resides. But even on that measure, the proportion of minority advisers lags wealth demographics.

Non-white Americans hold 12% of the wealth in this country, according to a Demos analysis of Federal Reserve data. Only 8% of advisers are ethnic minorities — and in most firms it's likely less.

Few of the major financial firms break down their adviser populations by ethnicity. One that has been more visible is Edward Jones, and it estimates that it has about 6% minority advisers among its ranks.

Many industry leaders agree that there is a diversity issue, even a considerable problem.

Bernie Clark, head of Schwab Advisor Services, told me last week that he believes the industry needs more diversity among its ranks, especially looking out a decade or two.

The great transfer of wealth that's expected in the coming years from men to women also will extend to ethnicity, he said. The number of minority advisers needs to increase because the client base will become more diverse.

“The reality is the diversification of the pools of assets are going to change dynamically over the next tens of years,” Mr. Clark said. “Then diversity of the advisory industry will become even more important.”

He believes “infiltrating the university structure” and educating more minorities about the financial advice industry and trying to get people accredited earlier will help.

Some think the education should come earlier.

Mac Gardner, a Raymond James adviser in Houston who is a Caribbean-American, blames the national lack of financial literacy and education for keeping most Americans ignorant about financial planning as a whole.

Most people who get exposure to financial concepts and advice when they are young get it through family and those networks, he said. His own father was a bank executive.

Those without a financially literate role model are lost.

“The overarching issue is that the education system is not teaching about finances,” Mr. Gardner said. “You need to hear the story of investing and saving from somewhere or someone.”! ;

More minorities would naturally be led to the financial planning profession if they were taught the fundamentals of finance, he said.

Other than a lack of adequate education, which could be argued is a national issue, not an racial or ethnic one, most people don't point to distinct barriers that keep minorities from the profession. It's not an issue that the 50-year-old Civil Rights Act can address alone. But it is one that needs further examination.

Look for InvestmentNews stories overs the coming months that probe the reasons why minority graduates aren't going into financial planning and whether firm efforts to boost diversity are having an impact. Please share your thoughts on these issues by commenting here or to me privately at lskinner@investmentnews.com.