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Weekend Reading For Financial Planners (June 27–28)

June 26, 2026 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a recent study from The Ensemble Practice finds that while surveyed advisory firms posted profit margins in excess of 38% for fiscal year 2025 (a figure up nearly 15 percentage points over the past decade), organic growth rates have lagged, with strong market performance being a key contributor to both (serving as a revenue driver for AUM-based firms, but also leading some consumers to continue managing their own investments). Which suggests that during a future market downturn, firms that do invest in pursuing organic growth (e.g., by engaging in multiple tactics and creating a structured marketing and sales process) could be better positioned to reach consumers who are newly incentivized to seek out an advisor, ultimately weather the storm that could otherwise significantly erode their revenue, and emerge even stronger when the market eventually recovers.

Also in industry news this week:

NAPFA announced a new fiduciary standard for its registered advisors this week, going beyond SEC and CFP Board fiduciary requirements, particularly when it comes to advisor compensation
A recent survey indicates that financial advisors on the whole are largely upbeat when it comes to their growth prospects over the next few years and are leaning into the human element of advice as they prepare for greater competition from AI-powered self-directed advice tools

From there, we have several articles on retirement planning:

A rule from "SECURE Act 2.0" restricts the type of catch-up contributions that can be made to workplace retirement plans for certain high-income earners, though these contributions could still be valuable despite the absence of an immediate tax deduction
How individuals can gain early retirement flexibility using the "Rule of 55" to make penalty-free withdrawals from their workplace retirement plans
A study finds that married couples sometimes don't maximize the employer matches available to them, in part because of concerns about how workplace retirement plans would be treated in a potential divorce

We also have a number of articles on insurance planning:

When long-term care insurance might (and might not) make sense for clients in the current challenging environment for the product
How financial advisors have responded when clients face sharp premium hikes on their long-term care policies
Why individuals might want to seek out insurance policies that are expected to lose them money (on average)

We wrap up with three final articles, all about the future of content in a "Zero-Click" world:

17 types of content that could continue to perform well at a time when fewer individuals are actually clicking through to websites from Google searches
Why nurturing a highly tailored audience could help content creators (including financial advisors) succeed amidst the centralization of information
While "how-to" books have experienced a sharp decline in sales amidst the growing popularity of AI chatbots, those dedicated to consuming long-form content (and/or who have an accountability partner) might be more likely to succeed in their fitness, financial, or other goals

Enjoy the 'light' reading!

When Clients Would Rather Feel More Financially Successful Than Take Action To BE More Successful: Kitces & Carl 193

June 25, 2026 07:06 am 0 Comments CATEGORY: Kitces & Carl Podcast

Helping clients become more financially successful is a multi-faceted process, but much of it ultimately comes down to implementation. The challenge is that for clients (and advisors themselves!), "implementation" is more than 'just' point-and-go, where a direction is determined, then everyone executes perfectly. Instead, motivating clients towards action requires multiple steps of goal-setting, then dissecting why those goals are those goals, adjusting accordingly, then creating clear steps… and even then, the client may not act. Yet for some clients, is the feeling of progress enough?

In this 193rd episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the difference between feeling productive, being perceived as productive, and actually being productive – and the place that each of the three states plays in motivation. Whether a client (or advisor) is focused on productivity, creativity, fitness, or financial success, it is easier to feel that they are being creative than it is to actually go forth and create (let alone publish something for public consumption). Self-help books and the like proliferate in part because they provide helpful frameworks and thought leadership… and in part because they can create a sense of process without requiring sustained effort.

Similarly, clients may enjoy the feeling of being financially responsible – they have an advisor and a financial plan! – yet may not implement the goals they appear to agree with. Some of this, undoubtedly, is due to the fact that many of the actions associated with financial planning are tedious at best – even if the advisor tries to make them clear and pleasant, and even if the client likes the financial advisor. Some of this may be because the client gets 'enough' from feeling responsible. And some inaction may come due to an unspoken unwillingness to act due to 'something else'. Advisors may be able to diagnose and address some of these tactics by using scaling questions ("On a scale of 1–10, how ready are you to implement this? If you're a 6, what would it take for you to reach a 7?") and other communication strategies.

Ultimately, the key point is that effective financial advice is as much about client behavior as it is about actions and solutions. Sometimes the most valuable contribution an advisor can make is helping clients feel understood, supported, and capable of making progress, even if that progress initially appears small. By recognizing that the desire to feel successful often precedes the willingness to become successful, advisors can approach advice adherence with greater patience and compassion. In doing so, they create an environment where clients can gradually build confidence, readiness, and momentum… allowing meaningful financial change to emerge over time!

The (Unexpected) Registration Responsibilities When Engaging In Paid Referrals

June 24, 2026 07:02 am 0 Comments CATEGORY: Regulation & Compliance

As part of a broader marketing strategy, RIAs might work with "solicitors" or "promoters" (e.g., accountants, online advisor matching platforms, and compensated bloggers) who refer prospective clients in exchange for compensation. While the SEC's Marketing Rule sets forth rules requiring RIAs to disclose their compensation arrangements with any paid promoters and the potential conflicts they entail, some firms might not realize that, depending on the relationship between the RIA and the promoter and the extent to which the promoter provides 'advice' to prospective clients, disclosure alone might not be enough for the RIA to be fully in compliance.

In this guest post, Isaac Mamaysky, Partner of Potomac Law Group and Cofounder and COO of QuantStreet Capital, explains the requirements for paid referrals under the SEC Marketing Rule, why paid promoters may need to register as RIAs (or IARs), and whether the registration burden lies in the hands of the promoter or the RIA that's compensating them.

To start, an RIA engaging with a promoter will want to ensure compliance with the Marketing Rule (and provide the required Form ADV disclosures) for the testimonials and endorsements themselves. For example, the Marketing Rule requires that advisers disclose, among other items, whether cash or non-cash compensation was provided for the testimonial or endorsement and any material conflicts of interest arising from the adviser's relationship with the promoter.

Next, the RIA can determine whether the promoter is a supervised person of the firm, defined by the Investment Advisers Act as "any partner, officer, director (or other person occupying a similar status or performing similar functions), or employee of an investment adviser, or other person who provides investment advice on behalf of the investment adviser and is subject to the supervision and control of the investment adviser". If a promoter is determined to be a supervised person, the RIA must determine whether the promoter is required to register as an investment adviser representative (IAR) under applicable state law.

If, instead, a promoter is acting independently of the adviser (i.e., not as a supervised person), while there is no explicit requirement for advisory firms to confirm their unaffiliated promoters' registration status, prudent firms may choose to conduct due diligence into the promoter's compliance with their standalone registration obligations (if any).

Ultimately, the key point is that while the Marketing Rule made it easier to use both paid and unpaid promoters for business development, there are still compliance obligations regarding their use that could trip up advisors who don't have a full understanding of their requirements. Nevertheless, by determining whether they have made sufficient disclosures regarding the use of a solicitor, as well as whether a solicitor is a supervised person (and following the relevant Federal and state registration requirements depending on the solicitor's status), firms can ensure that they comply with not only the requirements of the Marketing Rule itself, but also those under the Advisers Act, SEC, and state regulations that make up the full compliance landscape for testimonials and endorsements.

Scaling To $3.5M Of (Flat-Fee) Revenue By Leaning Into A Unique Retirement Income Approach: #FASuccess Ep 495 With Bradley Clark

June 23, 2026 07:05 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Bradley Clark Podcast Featured Image FAS

Welcome everyone! Welcome to the 495th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Bradley Clark. Bradley is the founder of Clark Asset Management, an RIA that operates remotely and oversees $1.6 billion in assets under management for 340 client households.

What's unique about Bradley, though, is how he has grown his firm by charging flat fees to clients nearing and in retirement who benefit from his unique approaches to generating retirement income and portfolio management.

In this episode, we talk in-depth about how Bradley has grown his firm with the goal of achieving “minimum efficient scale” (a level of revenue that he thinks is higher for flat-fee firms compared to those that charge on an AUM basis), how Bradley tracks key metrics and ratios to determine whether his firm remains on track to scale effectively, and how Bradley has increased his fees over time (from an annual $7,500 flat fee to $12,500 today) while being mindful of sensitivities for legacy clients (resulting in very little client attrition along the way).

We also talk about how Bradley approaches retirement income planning by dividing client spending goals into needs, wants, and wishes and then conducting a probability of success analysis on each (with the goal of achieving at least a 90% probability of success for needs but lower percentages for wants and wishes (as a higher probability of success for these might suggest that their vision of wants and wishes aren't expansive enough), how Bradley implements asset-liability matching using an income floor strategy (that can include Social Security, employer pensions, bond ladders, and/or income annuities), and how Bradley leverages investment models from Vanguard and Dimensional Fund Advisors as part of his portfolio management approach (which he has found builds credibility as clients understand that they are tapping into the collective wisdom of these firms).

And be certain to listen to the end, where Bradley shares his three-meeting client onboarding process (which is grounded in the idea that each meeting should build positive ‘momentum' towards his clients' financial goals), how Bradley has found that operating on a high-volume, flat-fee basis has allowed him and his team to get the benefit of more ‘reps' delivering their service model, and how Bradley's previous career experiences offered him valuable experiences and skills that have served him well creating and growing a financial advice business.

So, whether you're interested in learning about what it takes to scale a flat-fee advisory business, taking a granular approach to retirement income planning, or creating an onboarding process that builds momentum for a long-term client relationship, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Bradley Clark.

Real Equity, Real Buy-In: A Practical Framework For Offering Equity Ownership

June 22, 2026 07:06 am 0 Comments CATEGORY: Practice Management

Many financial advisory firms start out with a single founder – in part because, early on, the founder might also be the only employee. Over time, as the firm grows in terms of clients, revenue, and team members, the founder may consider opening up ownership opportunities to employees, whether to reward key team members, foster a greater sense of ownership among staff, or support a long-term succession plan. However, taking that step can come with challenges, from determining the appropriate buy-in structure to overcoming the mental hurdle of no longer being the firm's sole owner.

In this guest post, Tim Goodwin, founder and CEO of Goodwin Investment Advisory, discusses the strategic thinking behind offering equity ownership opportunities to employees in his firm, the framework he used to expand ownership, and how other founders can prepare to share ownership in their own firms.

At a fundamental level, Tim wanted to offer equity to his employees to foster a greater sense of ownership. Being an owner – and receiving distributions based on the firm's profitability – can heighten employees' focus on the firm's efficiency, client experience, and long-term enterprise value. For instance, his employee-owners are incentivized to identify potential cost-saving opportunities, such as whether certain subscriptions are truly necessary.

Tim found that preparation was crucial before sharing equity, as having clean books, a current operating agreement, clear buy-sell language, a reasonable valuation process, and enough financial transparency to educate employee-owners can smooth the transition and help avoid conflicts down the line. Once the business is prepared to bring on additional owners, the next steps include defining which employees can participate and when, setting guidelines for how much eligible employees can buy each year, using a repeatable valuation process to price shares, creating a simple annual process for commitments, payments, and ownership updates, and keeping the operating agreement current as the firm evolves.

In Tim's case, equity buy-in opportunities are offered to all employees who have been with the firm for at least one year, which creates greater alignment across the staff and recognizes the contributions non-advisory staff make to the firm's profitability. He allows employees to buy additional shares once per year at a revenue- and profitability-based valuation, and he also allows employees to sell their shares if, for example, they need liquidity for a major purchase. Employee-owners are required to liquidate their shares when they leave the company unless they retire, in which case they can retain ownership for no more than 10% for 10 years This helps keep ownership centered on current firm staff.

Ultimately, the key point is that allowing employees to buy equity ownership interests in the firm is not just a way to reward key personnel. It can foster a psychological sense of ownership across the team, support stronger alignment around growth and profitability, and potentially create stronger long-term outcomes for both the founder and employees!

Weekend Reading For Financial Planners (June 20–21)

June 19, 2026 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that the SEC in recent examinations appears to be looking into RIAs' use of held-away asset management technology that allows advisors to more efficiently and securely manage their clients' 401(k) plan accounts by giving the advisor the ability to not just view and actually trade in the 401(k) account. Areas of concern for the regulator appear to include whether a firm is transparently disclosing fees (including whether fees charged by these platforms are covered by the firm or passed on to the client) and whether a firm is using third-party providers at all or is doing it themselves and then retaining client login credentials (which could create custody and data security concerns). Which highlights the importance for those who use held-away asset management technology to be able to explain to their regulator (whether at the Federal or at the state level) how it allows them to better holistically manage their clients' assets without resorting to collecting client login credentials.

Also in industry news this week:

A survey of undergraduate students in financial planning programs finds that this group is largely focused on client service and growth opportunities (in addition to salary), suggesting that firms whose culture focuses on building long-term relationships with employees and clients alike could be more attractive to next-gen advisors
The quality of advice received and the quality of the relationship top the list of reasons clients leave their advisor, according to a recent survey, suggesting that advisors meeting with a 'switcher' might explore how their experience and communication practices might (or might not) be a fit for these prospective clients

From there, we have several articles on investment planning:

While a dividend-centric investment approach might come with tax inefficiencies (and potential concentration risk) compared to a 'total return' approach, it could still be attractive to certain retired clients who might be willing to spend more if they don't need to tap into their principal
When it might (or might not) be prudent to reinvest dividends and how advisors can offer significant investment and tax planning value in this area
Why a focus on investing in dividend-paying stocks could leave investors with a tilt towards value stocks that they might not have expected

We also have a number of articles on practice management:

Three key questions advisory firms can ask candidates during an initial 'phone screen' to efficiently and effectively determine whether it's worth investing more time evaluating a particular applicant
How financial planning job candidates can send more 'positive' signals during the interview process (and avoid 'negative' ones) while demonstrating both their technical and professional acumen
How financial advisory firms can demonstrate their culture during the hiring process to attract good-fit candidates who will be more likely to stick around for the long haul

We wrap up with three final articles, all about AI and the workplace:

A recent survey finds there appears to be a mismatch between the time workers say they save by using AI and how much additional productivity they achieve (which suggests that the task-switching and other costs of AI could reduce its potential time-saving benefits)
How firms can ensure jobs remain meaningful in a world of increasing automation and human-AI interaction
How the example of bank tellers (whose numbers actually grew after the introduction of the ATM, only to decline amidst the rise of smartphones and mobile banking) shows how technological innovations can have sometimes unpredictable effects on employment in specific fields

Enjoy the 'light' reading!