Archives Of Weekend Reading For Financial Planners

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a recent survey found that Americans' top "burning questions" when it comes to retirement include the amount they need to have saved to retire comfortably (with respondents expecting to need $1.26 million), whether Social Security will be there when they need it (with those in Generation X particularly concerned about this issue), and whether inflation will rise after they retire. Notably, financial advisors are well-positioned to address all three of these 'pain points' (whether by creating a retirement income plan, letting clients know about the (true) state of the Social Security system and the effects of different policy choices, or creating an asset allocation that mitigates against inflation risk), presenting an opportunity to demonstrate their ability to solve the key issues facing their ideal target clients and attract more prospects in the process.

Also in industry news this week:

• The RIA channel continues to attract advisors away from wirehouses and broker-dealers, though new advisors continue to predominantly enter the industry through the latter channels
• A recent Supreme Court ruling puts retirement plan fiduciaries in the spotlight with the potential for a flood of legal actions, including against sponsors of relatively smaller plans

From there, we have several articles on retirement planning:

• A list of the top considerations for financial advisors and their clients when it comes to deciding whether to make traditional or Roth contributions to retirement accounts
• How Roth contributions and conversions can offer both financial and psychological benefits for clients
• Why pre-tax retirement contributions can potentially be a better option than Roth contributions in clients' peak earning years, even if they expect tax rates to increase in the future

We also have a number of articles on marketing:

• How advisory firms can position themselves for stronger organic growth amidst a volatile market environment
• How advisors can overcome the feeling of having a scattered marketing approach by defining "who" they want to serve and "how" they want to reach and engage them
• What advisors are doing to attract next-generation clients, from being willing to focus on their short-term 'pain points' to meeting them in the online spaces they frequent

We wrap up with three final articles, all about artificial intelligence:

• How advisors can build "custom GPTs" that can perform a variety of functions without requiring any coding experience
• While generative AI tools can help individuals take on 'thinking' tasks, relying on them could reduce users' own critical thinking capabilities
• Why using AI notetaking tools to record and summarize meetings could lead participants to be more cautious when contributing to discussions

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that as total household financial wealth grew to a record high of $90 trillion at the end of 2024, so too did the number of households advancing up the wealth ladder, with the High-Net-Worth (HNW) category of households with at least $5 million seeing a significant gain. Which could create opportunities for firms to seek opportunities to move 'upmarket' by trying to add new HNW clients who might not have an advice relationship (or whose current advisor doesn't provide sufficiently comprehensive service). Which, according to Kitces Research on Advisor Productivity, can lead to higher productivity for advisor teams (but can require an investment in staffing and higher-end planning services to meet their complex planning needs).

Also in industry news this week:

• According to a recent survey, 40% of financial advisory clients would switch to an advisor who offers estate planning services, with help with specific tasks like beneficiary designations or tax strategies as the most sought-after service among respondents
• RIA M&A activity set a first-quarter record to start the year (following a record-setting 2024), as private equity-backed buyers and sellers looking to grow within a larger firm have driven the deal market

From there, we have several articles on investment management:

• An analysis of a variety of portfolio rebalancing strategies finds that not rebalancing at all could lead to the highest returns (particularly for clients with longer investment horizons)
• While a review of research on the topic suggests that portfolio rebalancing might not lead to better risk-adjusted returns, it could still prove to be a valuable tactic for advisors, particularly when it comes to aligning a client's portfolio to their risk tolerance and capacity
• How portfolio rebalancing can provide a psychological (and potentially financial) return for clients during market downturns, particularly for those nearing and in retirement

We also have a number of articles on cash flow planning:

• How financial advisors can help clients evaluate the decision of whether to pay off their mortgage early
• The financial (and psychological) considerations surrounding the decision of whether to put down more than 20% when buying a new home
• While clients might think buying stocks on margin is too risky, they might not realize they are engaging in similar risk-taking behavior when they do so "on mortgage"

We wrap up with three final articles, all about having 'enough':

• How the "Jevons Paradox" explains why, despite many technological advances over the past century that have made work and other tasks more efficient, many people are busier than ever before
• Why having an "outcome orientation" could be a solution to information overload in the modern age
• Why finding a purpose after achieving financial independence can help individuals get off of the path of always seeking 'more'

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that the U.S. Senate has confirmed Paul Atkins to be the next Chair of the Securities and Exchange Commission (SEC). In terms of enforcement actions, Atkins is expected to prioritize instances of investor harm and be less inclined to issue sanctions for technical rule violations (which were more frequent under previous SEC Chair Gary Gensler). In addition, Atkins' arrival could also mean the end of the pending RIA outsourcing and custody rules proposed under Gensler, a reduced focus on monitoring advisors' off-channel communications, and a new regulatory framework for digital assets.

Also in industry news this week:

• NASAA this week approved model rule amendments that would restrict the use of the titles "advisor" and "adviser" by broker-dealers (and their registered representatives) who are not also dually registered as investment advisers, which, if adopted by state regulators, would largely bring state rules on this issue in line with the Federal Regulation Best Interest
• The SEC is reviewing the current $100 million asset threshold for registering with the regulator (rather than at the state level) with the potential to increase it (bringing more RIAs under state purview) as the number and size of RIAs has risen since the threshold was last lifted more than a decade ago

From there, we have several articles on managing market turmoil:

• How having a written investment plan, leveraging automations, and being diversified across assets and strategies can help clients weather chaotic markets
• A ranking of 10 sources of emergency cash, from liquid savings and low-risk taxable assets to margin loans and credit cards
• How financial advisors can help clients feel like they are taking (constructive) action amidst a rapidly changing market environment

We also have a number of articles on client communication:

• Why "compassionate objectivity" could be a better option than empathy to allow advisors to connect with nervous clients without risking their own mental health
• How affirmations can help hesitant prospects and clients overcome the fear of being judged by their advisor and move them toward action
• A list of questions advisors can use to foster understanding with clients (rather than simple agreement)

We wrap up with three final articles, all about ways to reduce stress:

• Actions both firms and advisors can take to prevent burnout during stressful periods
• Why stepping away from the desk for unqualified relaxation can ultimately lead to higher productivity
• The value of "de-prioritizing" in order to focus on to-do list items that are truly important and time-sensitive

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that President Trump's tariff announcement on Wednesday and the subsequent market decline have led many financial advisors to reassure clients that they are implementing their pre-determined plans for such circumstances. As they execute these plans, advisors appear to be taking different approaches depending on their investment philosophy and client base, with many preaching a 'stay the course' philosophy (perhaps highlighting that while equities are down, bonds have so far served their role as a portfolio ballast) and some finding potential tactical opportunities, from rebalancing client portfolios to identifying tax-loss harvesting opportunities.

Also in industry news this week:

• Republicans in Congress appear to be eyeing an increase in the State And Local Tax (SALT) cap, possibly to $25,000 for an individual, amidst other potential changes as they look to pass sweeping tax legislation before key measures in the Tax Cuts and Jobs Act expire at the end of the year
• Recent survey data sheds light on how advisors spend their time and view their value to clients, with plan preparation/presentation and investment management leading the way in both categories

From there, we have several articles on communicating with clients during market volatility:

• How the messages advisors communicate to clients during market downturns can vary depending on whether a client is in the accumulation or drawdown phase
• Methods for advisors to engage in one-to-many client communication during turbulent market periods, from regular email updates to video messages that allow clients to see and hear their advisor's reaction
• A step-by-step approach to handling calls from nervous clients during periods of market stress, including the potential value of leading with empathy and curiosity rather than hard data

We also have a number of articles on investment management:

• How advisors can navigate private market investments with increasingly curious clients
• While private credit ETFs potentially offer access to the asset class in a liquid and tax-efficient wrapper, an analysis highlights the difficulties of ensuring accurate pricing and liquidity of these funds given their relatively illiquid underlying assets
• Steps advisors can take to evaluate whether different types of liquid alternative funds might be appropriate for client portfolios and the importance of fund selection when using them

We wrap up with three final articles, all about scams:

• Potential action steps for advisors when they find out a scammer has set up an impostor profile of them online
• How advisors can protect their parents (and clients) from increasingly sophisticated financial scams
• How digging into the data can help advisors show clients that supposedly 'hot' investment strategies might not be as attractive as advertised

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent survey indicates that 70% of affluent financial advisory clients who believe their advisor is always obligated to act as a fiduciary indicated they are satisfied with their relationship and aren't seeking out a new advisor, while only 41% of clients who believe their advisor may put their own interests first indicated they are satisfied with their relationship. Which suggests that, amidst ongoing debate over fiduciary-related regulations, an advisor's status as a fiduciary could both lead to greater client trust (both in their individual advisor relationship and perhaps in the financial advice industry as a whole) and, ultimately, higher client retention rates.

Also in industry news this week:

• A recent survey indicates that younger "DIY" investors are more likely to be interested in working with a human advisor than their older counterparts, suggesting an opportunity for advisors to tap into this demographic (perhaps by setting minimum planning fees that ensure these clients can be served profitably today while they grow their assets over time)
• While a full repeal of the estate tax has the support of key Republicans in Congress, a (more limited) extension of the current exemption level could end up being part of major tax legislation expected this year, given the budgetary tradeoffs involved

From there, we have several articles on retirement planning:

• Research into how "sequence of return risk" tends to decline over time, particularly for clients who make it through their first five years of retirement with investment gains in their portfolio
• How using a "bucket" approach to building a retirement portfolio can help manage sequence risk and give clients greater confidence that their retirement spending needs will be met
• Why rebalancing is a key element of ensuring sustainable retirement income, whether an advisor uses a 'total return' or 'bucketing' approach to portfolio management

We also have a number of articles on advisor marketing:

• How advisors can use images, audio, and text found online in their own content without running afoul of copyright laws
• Why video content can be particularly effective in helping advisors connect with their ideal target clients and best practices for creating videos that will attract viewers
• A six-step process to creating and distributing blog content to maximize its reach

We wrap up with three final articles, all about getting better sleep:

• A recent study provides an additional data point connecting low-quality sleep to potential negative health effects
• How to arrange a bedroom to promote better sleep throughout the night, from bed positioning to managing the amount of light that enters the room
• Seven common assumptions about sleep and why they might be counterproductive to a good night's rest

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a report from Cerulli Associates found that, amidst an industry-wide trend towards comprehensive financial planning and away from pure transaction-based investment management, asset-based fees currently represent 72.4% of advisor compensation, while commission-based revenues have declined to 23% of an average advisor's revenue. Which reflects similar results from recently released Kitces Research on Advisor Productivity, which found that asset-based fees are used by 92% of surveyed advisory teams (and are the primary revenue source for 86% of respondents), with 42% using hourly or project fees, 37% offering retainer or subscription fees, and 34% receiving commissions (with some firms offering more than one fee model to attract different client segments).

Also in industry news this week:

• While inter-channel advisor moves often make headlines, a recent study from Diamond Consultants found that most advisor transitions occur between firms in the same channel
• The number of disciplinary cases and restitution orders from FINRA increased in 2024 (the total amount of fines declined) as the self-regulatory organization focused on violations in areas including trade reporting, options trading, and Regulation Best Interest

From there, we have several articles on investment planning:

• A review of historical market crashes shows that the 'pain' for investors is felt not only in the depth of each drawdown, but also in their duration
• While investors might view investment success as the product of active decisions they make, it is often the mistakes they avoid that lead to meeting their long-term goals
• Why making political bets with investments can be a risky, and challenging, proposition

We also have a number of articles on client communication:

• How applying the "ABC model of stress" can better allow advisors to support clients facing stressful situations and also demonstrate their value to prospects
• While the constant barrage of news headlines can give clients plenty of reasons to panic, advisors can add value for their clients not only by serving as a steadying voice, but also by being opportunistic when downturns do occur
• The key differences between client stress and anxiety and the communication approaches advisors can use to best respond to each

We wrap up with three final articles, all about leadership:

• How a "Constant Gentle Pressure" approach can lead to more consistent levels of client service and better relationships between managers and employees
• While operating remotely allows firms to access a broader pool of managers (and staff), doing so effectively can require more proactive methods of employee engagement on the part of leaders
• How leaders can get better at delegating, from regularly searching for tasks that they don't necessarily have to complete themselves to identifying next-generation leaders whose development could be accelerated by taking on new responsibilities

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that Securities and Exchange Commission (SEC) Commissioner Hester Peirce suggested in a recent interview that she would like to see the SEC give advisors more leeway to provide customized solutions to clients (rather than feeling required to take a regulator-prescribed "check-the-box" approach) and would like to ease the compliance burden on smaller investment advisers (perhaps expanding the SEC's definition of small firm in the process) to reduce the entry and operational barriers for these firms. Which, if implemented under the new administration, could provide relief for investment advisers, particularly smaller firms that already have to balance compliance with client service, marketing, and the other duties that go into running a firm.

Also in industry news this week:

• A recent survey finds that while advisors are increasingly using passive investment vehicles, many are taking the time to look beneath the hood to examine the makeup of different indexes in order to choose the best option for their clients
• A survey of advisors working at enterprise firms shows a significant increase in their adoption of artificial intelligence tools over the past year, with common use cases including predictive analytics, marketing, and summaries of meeting notes

From there, we have several articles on Social Security:

• The Social Security Administration has reversed a policy enacted last year that limited overpayment 'clawbacks' to 10% of monthly benefits, which will have the effect of reducing the monthly payments of some Social Security recipients to $0 until the overpayment is recovered
• How the relationship between income and longevity could play a role in policy efforts to raise the Full Retirement Age in order to help shore up the Social Security system
• A white paper shows the impact (in dollar terms) for clients of various proposals to put Social Security on sustainable footing

We also have a number of articles on practice management:

• As growth-driven (rather than retirement-driven) RIA M&A activity increases, deal terms and cultural fit (and not 'just' headline valuations) are becoming increasingly relevant
• Why a "curated cultural competition" with limited suitors rather than an "auction" focused on price could better serve the interests of RIA buyers and sellers alike
• How firms can approach unsolicited acquisition offers, from analyzing the different compensation elements being offered to assessing whether the buyer shares a similar approach to financial planning

We wrap up with three final articles, all about building better habits:

• 12 ways to build better habits, from breaking big goals down into smaller chunks to sharpening the ability to say "no" to opportunities that might distract from the goal at hand
• How "commitment strategies" can reduce the amount of willpower required to start and maintain new habits
• How running "tiny experiments" can help individuals build better habits while viewing their progress from a more impartial perspective

Enjoy the 'light' reading!

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Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that Congressional Republicans, who recently voted to set a $4.5 trillion target cost for their planned tax bill to replace the Tax Cuts and Jobs Act (TCJA), are currently debating whether the “baseline” for that cost should be the current law where TCJA’s provisions will expire in 2026, or if it should assume that TCJA doesn’t expire – the answer to which will largely dictate whether the next bill will ‘just’ extend TCJA (with few additional tax cuts), or whether it could go even further to include tax-free treatment of tips, an increase in the state and local tax deduction limitation, or even a repeal of the estate tax (among many other potential Republican tax priorities).

Also in industry news this week:

• A recent survey by Citywire found that one of advisors’ biggest perceived threats to the industry is the potential for private equity ownership of RIAs to degrade the quality of service provided by advisory firms
• The Corporate Transparency Act, which just last week had appeared to be back in effect, is now effectively on hold again after the Treasury Department announced it will not be enforcing the law’s Beneficial Ownership Information (BOI) reporting requirements

From there, we have several articles on AI productivity tools:

• How advisors can craft a good prompt for creating effective written content using AI tools like ChatGPT
• AI research tools can be an improvement on finding information via a Google search, though with the constantly shifting technology landscape it might be necessary to re-evaluate how they compare with one another on a regular basis
• Why AI tools that automate many of the manual tasks currently done by younger advisors can free up more time for those advisors to learn the skills that will help them advance in their careers

We also have a number of articles on investing:

• The growth of the biggest handful of U.S. stocks has outpaced the rest of the market by so much that the number of companies categorized as “large cap” has shrunk from nearly 500 to only around 150 over the last 15 years
• Amid fears that U.S. stocks are in a speculative bubble owing to their high price-to-earnings ratios, an analysis shows that a reversion to historical averages would result in U.S. equities underperforming international stocks over the next 10 years
• Why today’s high U.S. stock prices (as measured by the Shiller CAPE ratio) could be less about U.S. companies being overvalued and more about them simply having better growth prospects today than they did throughout the 20^th century

We wrap up with three final articles, all about health and energy:

• Why taking regular naps can improve peoples’ energy and productivity levels (although the effects aren’t always the same for different people)
• How humans’ origins as hunter-gatherers, and our evolutionary preference to conserve energy, can explain why it’s so hard to exercise solely for its own sake
• With Daylight Savings Time starting again this weekend, people can reduce the impact of shifting forward one hour by making more gradual changes to their own schedules

Enjoy the ‘light’ reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that CFP Board this week released a checklist of ethics guidelines for the use of generative Artificial Intelligence (AI) tools. The guide notes the promise of AI-powered tools for a variety of functions, including generating meeting summaries and ideas for public-facing content, but warns against reliance on these tools for work that requires a reasonable understanding of assumptions and outcomes (e.g., developing recommendations for clients) given the chance of mistakes or 'hallucinations' by AI tools, suggesting that advisors who take a systematic approach towards the use of generative AI (e.g., by establishing firm-wide policies for its use) could benefit from the efficiencies and creative power that can come from these tools while ensuring the accuracy and security of client data!

Also in industry news this week:

• The Department of Labor's (DoL) Retirement Security Rule remains in limbo as the Trump administration has been granted time by a court to decide on its approach to the Biden-era rule
• The Corporate Transparency Act (CTA) is back in effect (at least for now), with a deadline of March 21 for affected businesses (including some RIAs) to file the required Beneficial Ownership Information (BOI) report

From there, we have several articles on retirement planning:

• How advisors can help hesitant retired clients spend more by transforming portfolio assets into regular income streams
• How stress testing retirement plans (and leveraging flexible income strategies) can help build client confidence to spend more in retirement
• While sequence of return is often a focus of advisors and clients alike, a positive sequence of returns can allow clients to increase their retirement income over time

We also have a number of articles on client conversations:

• Why a combination of open- and closed-ended questions can help advisors explore clients' goals and pain points as well as focus them on potential planning solutions
• How advisors can reframe client questions to unearth hidden assumptions and expand the range of planning possibilities available to them
• A scorecard that can be used to assess an advisor's ability to make clients feel understood during planning conversations

We wrap up with three final articles, all about interpersonal communication:

• Why asking for "advice" rather than "feedback" can provide more actionable information for those looking to improve their performance
• Six (and a half) components that make up a good apology, from taking accountability head-on to identifying ways to ensure the subject of the apology doesn't occur again
• How honesty, credibility, and sincerity are at the heart of the best compliments, which can boost workplace productivity and relationship quality

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent study by Cerulli Associates finds that while financial planning clients (particularly high-net-worth clients) are overwhelmingly satisfied with their advisors, many advisors face client acquisition challenges despite investors being increasingly willing to pay for advice services. The study identifies a potential cause as confusion among some prospects about how their advisor would be compensated, suggesting that increased transparency from advisors (and linking their fees to the value they provide) could help remove this barrier to seeking an advice engagement.

Also in industry news this week:

• A majority of married women are their family's primary financial decision-makers, according to a CFP Board study, which also identifies the sometimes-differing planning priorities of female and male clients
• A report from AdvisorTech firm Orion finds that while a majority of advisory firms plan to increase their tech spending in the coming year (by an average of 19%), many advisors aren't taking advantage of the full suite of software and features available to them

From there, we have several articles on financial advisor value:

• A new study finds that clients working with an advisor would see a 2.39%–2.78% annual return premium (based on investment and tax planning services) over those without an advisor, after accounting for inflation and fees
• How offering client 'touchpoints' during the year can help an advisor demonstrate the work they put in for clients between regularly scheduled meetings
• Nine ways advisors add value to clients when it comes to portfolio management, from leveraging tax-efficient investment strategies to freeing up the client's time and mental bandwidth

We also have a number of articles on college planning:

• How legislation from the past few years has made saving for college in 529 plans increasingly attractive
• How advisors can help clients with children in college understand and correctly apply Forms 1098-T and 1099-Q
• A review of non-traditional pathways to an undergraduate degree, which can offer money and time savings for interested students and their families

We wrap up with three final articles, all about company culture:

• The importance of leadership access, transparency, and camaraderie when it comes to building a strong company culture
• How firms can establish team rituals that are both durable and promote employee engagement
• A step-by-step process to bring a (virtual) team together for an in-person retreat

Enjoy the 'light' reading!

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