Robo advisor assets are projected to explode to $2 trillion by 2020

Flickr / JoshBerglund19

Robo advisors are projected to grow rapidly (Bloomberg)

Consulting firm A.T. Kearney projects robo advisors will see their assets under management grow 68% annually to $2.2 trillion by 2020. The firm says half of that money will come from assets that have already been invested while the remainder will come from money that has yet to be invested. One of the major advantages of using robo advisors is their abilty to circumnavigate taxes. "The dramatic collapse of commission prices and the rise of automation means that institutional-grade tax-loss harvesting is now within the reach of all investors," noted robo advisor Wealthfront.

The impact of adding Chinese stocks to an emerging market index (Charles Schwab)

The addition of Chinese A-shares to a major emerging market index could have huge implications for the Chinese economy. According to Schwab, A-shares "represent companies incorporated in mainland China and traded on the Shanghai and Shenzhen stock exchanges" that have managed quotas by the Chinese government. Currently at 25%, the weighting of Chinese shares in the MSCI Emerging Market Index could jump to as high as 44% with the addition of A shares. Schwab believes the inflows of foreign capital that would occur from such a move would reduce China's borrowing costs.

Rand Paul wants a flat tax (Reuters)

Rand Paul wants to revamp the US tax code. Paul wants to apply a 14.5% flat tax rate to individuals and businesses that would lower the government's revenue by $2 trillion over 10 years. The proposal would eliminate virtually all deductions, leaving only exemptions for a mortgage or charities. "The immediate question everyone asks is: Won't this 14.5 percent tax plan blow a massive hole in the budget deficit? As a senator, I have proposed balanced budgets and I pledge to balance the budget as president," Paul said.

Morgan Stanley lost a big producer to Raymond James (Financial Planning)

James Maxwell, a 30-year veteran of the financial services industry, is leaving Morgan Stanley and taking his book of $75 million in client assets to Raymond James. "I went independent so I could really own my own business and future," Maxwell said. He continued, "It was also important that I affiliated with a firm that offers the resources I need to create my succession plan, and Raymond James offers the type of succession planning support to help me solidify my plan." According to Financial Planning, Maxwell joins two other Morgan Stanley teams who have made the move to Raymond James in June.

Finra slaps Robert W. Baird & Co. with a fine (Investment News)

Robert W. Baird has been fined $13 million, plus interest, by the Financial Industry Regulatory Authority. The firm must pay the dissolved Gleacher & Co for "alleged unfair competition and solicitation, among other conduct," according to Investment News. "While we disagree with this finding and are extremely disappointed in the outcome, we are fully reserved for this claim, and it will have no impact on our financial results," said a Baird spokesperson.