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 study from Cerulli Associates shows that consumer trust in financial services companies has increased significantly over the past decade, with firms that provide a more personalized approach to providing financial advice seeing the best results. Which could prove to be a boon for the financial advice industry as more consumers are willing to entrust their assets to an advisor (while at the same time possibly making it tougher for some advisors to differentiate themselves primarily by how they put their clients' interests first?).

Also in industry news this week:

• While many financial advisors are paying close attention to the potential extension of sunsetting measures within the Tax Cuts and Jobs Act (TCJA) in the coming year, legislation related to retirement savings could be on Congress' agenda as well
• Fidelity is planning to change the default for its existing RIA non-retirement clients' cash balances from money market funds to its (lower-interest-rate-paying) in-house cash management product in the latest signal that even when firms don't pay platform fees themselves, RIA custodial services aren't truly 'free'

From there, we have several articles on estate planning:

• A recent survey indicates that a significant number of families experience inheritance-related strain, which can be mitigated by opening up lines of communication between parents and their children
• How encouraging clients to think of their qualitative legacy goals (and not just the dollars and cents of what they what to leave to heirs) can help them overcome psychological barriers to starting meaningful inheritance conversations with their children
• 5 ways that clients can simplify their estate to ensure that their goals are met and that they don't create additional stress for their survivors

We also have a number of articles on retirement planning:

• Why alignment between one's sense of self and the lifestyle structure they operate in is a driving factor in whether an individual will thrive in retirement
• Why creating structure around how one will spend their time in retirement (whether through work, hobbies, and/or social activities) can ultimately lead to greater retirement satisfaction
• The different ways clients can implement a 'phased retirement' beyond working fewer hours, from creating a "stop doing list" to establishing greater workplace flexibility

We wrap up with 3 final articles, all about planning for the holiday season:

• Ideas for hosting a virtual holiday party for staff or clients, from chocolate-tasting classes to hosted virtual trivia events
• How financial advisors can ensure their client holiday cards and gifts stand out from the pack
• Tips for holiday-themed advisory firm social media content, including the value of video to help prospects and clients get to know firm staff better on a personal level

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 amidst a rare change in leadership at Charles Schwab, the outgoing and incoming CEOs hinted at relatively minor changes during remarks for advisors at its annual IMPACT conference this week, including an increased focus on lending services for high-net-worth clients and a desire to expand direct access to cryptoassets. Further, amidst grumbling from some firms, incoming CEO Rick Wurster reiterated a pledge that Schwab (which offers its own direct wealth management services) will not seek to compete for clients with RIAs on its platform, seeing opportunities to pursue prospective clients currently unserved by either group.

Also in industry news this week:

• Why the announced acquisition of RIA custodian TradePMR by retail brokerage firm Robinhood could prove to be a boon for RIAs on TradePMR's platform, who could receive a wave of referrals from Robinhood's massive base of next-generation retail clients
• How Morningstar is cutting the "Medalist Ratings" of thousands of funds amidst a change to its ratings methodology that could provide advisors with a better picture of forward-looking performance expectations

From there, we have several articles on retirement planning:

• A recent survey demonstrates benefits for advisors (and their clients) in specializing in crafting portfolios specifically designed to generate retirement income for clients
• How a recent study finds that matching the timing and size of portfolio withdrawals to the income needs of retired clients could allow for greater portfolio sustainability than more fixed approaches
• An exploration of the considerations for advisors who want to create 'retirement paychecks' for their clients, from choosing an investment approach to generate sufficient income to deciding how to transform assets in a portfolio to dollars in clients' bank accounts

We also have a number of articles on practice management:

• Why offering profits interests could be an attractive way for firms to reward top-performing employees without giving up control of the business
• While awarding equity grants is often seen as a way to align employee interests with those of the firm, this practice might not be as attractive for certain employees as it might seem
• The challenging questions firms face when creating 'fair' compensation structures, from deciding who is bringing the most value to the firm to considering how (and whether) to issue bonuses during periods of lower firm revenue

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

• While intermittent fasting has been shown to offer some weight loss benefits, some research suggests it might not be the 'health hack' it was once thought to be
• Several scientific studies have found nutritional benefits to eating ice cream, but the true cause of this finding is unclear
• Why the purported presence of "Blue Zones", regions whose residents show remarkable longevity, might be due to questionable recordkeeping rather than specific traits of these communities

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 latest Fidelity RIA Benchmarking Study shows that while RIAs saw gains in AUM and revenue last year, their operating margins tightened, suggesting that rising expenses are cutting into firm profits. The study also looked at what “high performing” firms are doing differently than their peers, finding that these firms have a higher close rate on referred prospects, were better able to maintain pricing discipline, and had significantly lower expenses as a percentage of firm revenue.

Also in industry news this week:

• NASAA has proposed an amendment to its broker-dealer conduct model rule that would restrict the use of the terms “advisor” and “adviser” for broker-dealers and their registered representatives who are not also investment advisers or investment adviser representatives
• A recent study suggests that large RIA consolidators are becoming more like their large broker-dealer counterparts, not only in terms of the AUM they control, but also in the types of services they offer advisors under their umbrella

From there, we have several articles on tax planning:

• 7 year-end tax strategies advisors can consider to help their clients lower their tax bill this year and into the future
• Why seeking to minimize a client’s current-year tax bill isn’t always the optimal strategy when considering their lifetime tax obligations and their lifestyle needs
• While RMDs are a fact of life for many retired clients, advisors can help make the most of them by strategically selecting assets to fund the distribution to meet asset allocation and asset location goals

We also have a number of articles on advisor marketing:

• How lead segmentation can boost the effectiveness of an advisor’s email marketing campaign
• A 3-email sequence to effectively welcome new leads to an advisor’s email list and encourage them to engage with the firm
• A review of email marketing software providers, which can vary significantly based on features and price

We wrap up with 3 final articles, all about college planning:

• How, contrary to popular belief, the sticker price of college tuition (and particularly the average net price students actually pay) has lagged the broader inflation rate in recent years
• Why the increasing use of ‘merit aid’ among colleges makes high school grades important not only for college admission, but also for the breadth of schools they might consider
• A tool that lets users evaluate the return on investment of different degree programs, colleges, and majors shows that getting a degree still typically comes with a significant (though not universal) positive financial return

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 amidst the impending return of Donald Trump to the White House, observers expect a lighter-touch regulatory environment for RIAs (and the financial services industry as a whole), with many regulations proposed (but not yet implemented) under SEC Chair Gary Gensler (e.g., strengthened rules related to custody and outsourcing) and broader regulatory efforts put forth by the Biden administration that could also affect advisory firms (e.g., the Department of Labor's Retirement Security Rule and the Federal Trade Commission's ban on most non-compete agreements, both of which are currently blocked by courts) likely to be tabled under the new administration. Which could ease the compliance burdens for RIAs (particularly smaller firms that are sometimes stretched thin handling compliance responsibilities), though if lighter-touch regulation leads to more abuses that erode consumer trust in the financial advice industry, fiduciary advisors could have a harder time convincing clients that they truly are acting in their best interests and differentiating from product salespeople who continue to use the "financial advisor" title.

Also in industry news this week:

• A study suggests that engaging in a collaborative planning process with clients not only can boost client engagement but also lead to more client referrals as well
• A survey of compliance professionals indicates that while many have tried using artificial intelligence tools to boost efficiency in their compliance programs, most have yet to experience significant benefits

From there, we have several articles on client communication:

• A recent study identified significant gaps between the retirement planning topics advisors recall talking about with their clients and those that clients remember discussing, suggesting that advisors could consider ways to create better client engagement so that they absorb key messages and recognize the value their advisor is providing
• How advisors can make prospects and clients feel 'smarter' by better understanding their financial knowledge and learning style preferences
• While many financial planning goals are meant for the long term, advisors can provide value and build loyalty among clients by engaging in regular communication (both synchronous and asynchronous) to help them prepare for and overcome inevitable bumps along the way

We also have a number of articles on Long-Term Care (LTC) insurance:

• With some LTC policyholders facing proposed premium hikes of more than 100% in the next year, advisors have a valuable role to play in helping them evaluate their options
• A study suggests that LTC policyholders are more likely to accept premium increases when their options are made clear to them and they feel more confident in their decision, suggesting a potential educational role for advisors helping clients facing premium increases
• The potential perils of fully self-funding potential LTC needs and why a "50/50" approach might be appropriate

We wrap up with 3 final articles, all about Artificial Intelligence (AI) and everyday life:

• A new AI-powered tool allows users to generate their own custom (and entertaining) podcast on any topic
• Why a shift toward relying on generative AI tools to write could lead to a decline in both writing and critical thinking skills
• While AI-powered search tools provide convenient summaries to user queries, they could ultimately impede the ability of users to discover new content (and disincentivize content creators, including financial advisors, to produce it in the first place)

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 SIFMA, which represents broker-dealers, investment banks, and asset managers, released a white paper that argues that CFP Board "increasingly functions as a de facto private regulator for CFP certificants" and proposes that CFP Board eliminate rules and standards that duplicate, conflict with, and/or impose in addition to existing SEC and/or FINRA rules and standards. At the same time, CFP Board has noted that advisors pursue the certification voluntarily and that its standards, which cover the entire financial planning process (unlike SEC and FINRA regulations that largely focus on investment management), help to raise standards for the industry as a whole at a time when advisors increasingly offer comprehensive planning services.

Also in industry news this week:

• A recent study suggests that while a majority of financial advisory clients surveyed have only had 1 advisor, deteriorating client service is a key risk factor that could sway certain clients to leave for a different advisor
• RIA M&A activity in 2024 is poised to surpass the total number of deals seen in 2023, according to one analysis, as lower interest rates and continued interest from private equity-backed firms could as tailwinds for dealmaking

From there, we have several articles on retirement planning:

• How advisors can support clients who want to retire early, including quantitative analyses that can show whether it's possible and initiating qualitative conversations about how they plan to thrive amidst this major life change
• While followers of the Financial Independence Retire Early (FIRE) movement are often portrayed as penny-pinchers looking to ditch their careers as soon as possible, in reality there are several 'flavors' of FIRE that could be appealing for a wider range of clients
• 12 tax planning principles for early retirees, from balancing the 0% long-term capital gains with partial Roth conversions, to being aware of how different income levels can affect various subsidies and tax credits

We also have a number of articles on practice management:

• How bringing on new clients can offer a variety of benefits for an advisory firm, even if it isn't looking to grow significantly
• 5 growth strategies for independent RIAs, from building strategic partnerships with centers of influence and hiring a diverse team with a wide range of strengths
• A 7-step process for building an efficient, thriving advisory practice, which starts with the firm owner crafting a vision for what they want their client base and personal lifestyle to look like

We wrap up with 3 final articles, all about persuasion:

• Why being comfortable with silence can help an advisor build better relationships with prospects and clients
• Research-backed tactics for being more persuasive, from eliminating filler words to asking more follow-up questions
• How financial advisors can persuade prospects to become clients by leveraging "influence" techniques

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 and Osaic found that at a time when consumers are increasingly seeking comprehensive planning relationships with their financial advisors, many advisors appear to be overestimating the comprehensiveness of the services they provide. Nonetheless, given Kitces Research findings that being 'too' comprehensive can eat into a firm's bottom line, advisors might seek a 'sweet spot' of providing a comprehensive slate of services (but not necessarily every possible service) that are most valuable for their ideal target client.

Also in industry news this week:

• The SEC this week released its list of priorities for 2025 examinations, which include advisers' use of Artificial Intelligence tools, adviser recommendations of complex investment products, and broker-dealers' compliance with Regulation Best Interest
• CFP Board has introduced a refreshed ad campaign encouraging students to pursue a career in financial planning after some of its initial ads received pushback from the advisor community

From there, we have several articles on investment planning:

• A report from Morningstar found that investors underperformed the funds they invested in by approximately 1.1 percentage points each year during the past decade, signaling a potential opportunity for advisors to help clients avoid this "behavior gap"
• A research paper considering the underlying methodology of studies measuring the "behavior gap" suggests that the "gap" might be much smaller than assumed
• While financial advisors can add value by managing their clients' "behavior gap", it might not be an effective selling point when meeting with prospects

We also have a number of articles on estate planning:

• Strategies for encouraging younger clients (and perhaps the adult children of older clients) to prepare relevant estate documents
• The key legal documents needed to help a client plan for their potential incapacity and avoid potentially acrimonious court proceedings
• How creating a "digital death-cleaning" plan can give a client peace of mind that their digital affairs will be in order after their deaths and ease the burden on their survivors in the process

We wrap up with 3 final articles, all about intelligence:

• 4 exercises that can help an individual avoid cognitive biases and make better decisions
• Why "wisdom work" is increasingly important in the modern workplace and how firms can tap into the experiences of employees across the age spectrum
• Why 'intelligent' and 'smart' are not necessarily synonymous and why each of these play a role in finding success as a financial advisor

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 Charles Schwab has revealed changes to its technology offerings in the wake of its merger with TD Ameritrade, bringing over several popular TD tools, including portfolio rebalancing tool iRebal, its Model Market Center model management service, and its trading platform thinkpipes, likely in an effort to keep former TD users (many of whom were accustomed to this software) on the Schwab platform (and to expand offerings for firms already on the Schwab platform) as competition in the RIA custodial platform marketplace heats up.

Also in industry news this week:

• 43% of wealth management firms are frustrated with the effectiveness of their CRM software, spurred on by challenges with integrations and workflows, according to a recent survey
• The Social Security Administration this week announced a 2.5% cost of living adjustment for 2025, a decline from previous years, reflecting a reduced inflation rate

From there, we have several articles on insurance planning:

• How changes to Medicare Part D for the upcoming year could lead to lower out-of-pocket spending on prescription drugs for certain clients
• 5 mistakes individuals make when it comes to Medicare, from underestimating expenses to missing important deadlines, and how advisors can help prevent them
• Key opportunities for financial advisors to add value for clients during Medicare's open enrollment period, from evaluating prescription drug plans to discussing the potential benefits and drawbacks of moving between 'original' Medicare and Medicare Advantage plans

We also have a number of articles on client risk tolerance:

• Why separating risk tolerance from risk capacity and incorporating both risk tolerance questionnaires and qualitative conversations can provide advisors with more complete insight into their clients' ability and willingness to handle investment risk
• Why a client's tolerance for "career risk" is a potentially important factor when creating a financial plan and evaluating alternative scenarios
• How individuals' risk tolerance as they move into retirement does not decrease as much as might be expected

We wrap up with 3 final articles, all about setting goals:

• A 3-step process that can help clients set more accurate, specific financial goals
• How advisors can motivate clients by having them choose "not not serious" goals that can add vibrancy to their financial plans
• Why focusing on internal motivation and consistent processes, rather than external, measurable goals, could lead to greater personal and professional satisfaction

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 CFP Board ad campaign promoting a career in financial planning to high school and college students sparked an uproar in the planning community, as some advisors questioned whether the messages being sent in the ads – in particular, certain static ads that did not provide as much context into the messaging as a series of 15-second video ads – realistically represented the profession, both in the minds of students and of members of the broader public who might have encountered them.

Also in industry news this week:

• Edward Jones, which added more new CFP professionals than any other firm last year, announced that it is planning to offer financial planning services nationwide, highlighting the value for RIAs and other firms of differentiating themselves amidst increased competition not only for clients, but also for advisor talent
• A recent survey indicates that a strong majority of those expecting to receive an inheritance in the upcoming "Great Wealth Transfer" plan to work with a financial advisor, presenting advisors with the opportunity to win over recent inheritors as clients while flagging the potential for some clients to look for a new advisor after receiving a windfall

From there, we have several articles on retirement planning:

• Why recent trends in home prices and interest rates have affected the rent versus own decision for retirees and how advisors can help clients crunch the numbers and explore their goals to make the best decision for their needs
• How the strategic use of a reverse mortgage can potentially help certain retired clients mitigate sequence of return risk and maximize their overall wealth
• How advisors can support clients considering a move to a Continuing-Care Retirement Community (CCRC) by reviewing the financial data of CCRCs under consideration, which can signal whether the CCRC will be able to follow through on its promise of serving the clients for the rest of their lives

We also have a number of articles on practice management:

• How RIAs are getting creative with "total rewards" packages to attract and retain employees, from offering pet insurance to providing quarterly "wellness bonuses"
• The different types of 'synthetic' equity and how they compare to 'true' equity in the eyes of firm owners and employees
• Why the trend towards increased pay transparency across industries in recent years raises the importance of aligning a firm's compensation model with its overarching productivity goals

We wrap up with 3 final articles, all about the meaning of success:

• Why maintaining focus on one's own goals is crucial at a time when individuals touting "blind ambition" abound
• Why many of the most important factors leading to a meaningful life cannot be measured in numerical metrics alone
• Why the ability to "do it your own way" is often at the center of personal success, both professionally and financially

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 from Charles Schwab indicates that advisors see technology as the biggest driver of change in the RIA industry, with the growing number of AdvisorTech solutions as the most frequently cited tech-related driver of change. Further, Artificial Intelligence (AI) was the most cited factor driving industry growth during the next 3 years, with client data integration as a primary area for improvement, suggesting an opportunity for AI tools to help advisors make the most of the significant amount of client data they possess (possibly saving time in the process) and potentially offer a deeper planning experience for their clients!

Also in industry news this week:

• A recent survey found that while 1/3 of advisory firms are currently using AI tools, another 1/3 are fearful of doing so, indicating that while some firms are eager to be early adopters of this technology, others are taking a wait-and-see approach, perhaps as regulation surrounding this technology evolves over time
• National RIA Creative Planning recently received an eye-popping 23X  earnings valuation in its sale of a minority stake to a Private Equity (PE) firm, indicating that some acquirers are prioritizing a firm's depth of integration and consistency (and the growth prospects it supports), and not just its size, when making investments and setting a value for advisory firms

From there, we have several articles on retirement planning:

• Why now could be a good time for clients nearing and in retirement to trim their equity allocations (perhaps as part of a regular rebalancing strategy), despite the potential temptation to be overweight stocks in the current hot stock market
• Why contingent deferred annuities could serve as a middle ground for advisors and their clients who want additional protection from longevity risk without giving up control over their assets
• How a "bond tent" approach can help advisors and their clients reduce sequence of return risk without increasing longevity risk in the process

We also have a number of articles on client communication:

• How advisors can craft effective stories that can help clients and prospects better understand technical planning topics and the value the advisor provides
• Why individuals and companies that have the 'best' story sometimes prevail over those that might have better ideas or products
• 5 types of stories for advisors to have in their back pocket to deal with a variety of client circumstances

We wrap up with 3 final articles, all about spending on children:

• Why some parents are cutting back on financial support for their adult children, and the strategies they are using to do so
• How providing "helicopter money" can unintentionally stunt a child's path to financial independence from their parents
• Why buying kids the highest-quality goods could give them a skewed perspective on what 'normal' purchases look like and the need to balance financial limitations with their 'wants'

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 has shown a sharp increase in the number of affluent investors willing to pay for advice, which on the one hand reflects the increasing financial complexity in peoples' lives (while they've also gotten busier than ever at work and at home) to the extent that they're more willing to work with someone to navigate those financial challenges; while also highlighting the progress advisors have made in providing more value beyond 'just' portfolio management – and in demonstrate that value to the public.

Also in industry news this week:

• As brokerage firms have faced a wave of lawsuits regarding the low interest rates paid on cash sweep accounts, some legal experts believe that RIAs could also be targeted for legal action if they allow clients' uninvested cash to sit in a cash sweep account rather than investing it or moving it to a higher-yielding cash account
• In a recent SEC panel discussion, the CFP Board pushed back against claims by the broker-dealer and insurance industries that a uniform fiduciary duty would impose a heavy cost burden on commission-based advisors (and therefore restrict access to financial products and advice for lower- and middle-income consumers) with data showing that CFP certificants, who are held to a fiduciary standard, actually earn more income on average while still serving lower-income clients

From there, we have several articles on investing in the wake of the Federal Reserve's recent decision to cut interest rates:

• How the Fed's rate cuts will translate into lower interest rates on cash products like savings accounts, CDs, and money market funds (meaning cash may no longer be a 'free' source of 5%+ returns)
• How markets have historically tended to fare surprisingly well following rate cuts, providing some comfort for long-term investors even in the midst of short-term economic uncertainty
• Why there's little that investors can do today to take advantage of the recent rate cut (since it was already largely priced into markets) – but it may not ultimately matter much to investors with a longer time horizon, for whom a rate cycle is just a blip in the long-term picture

We also have a number of articles on Mergers & Acquisitions:

• Why firms seeking to pursue growth inorganically via M&A will be more successful if they can first figure out how to achieve sustainable organic growth
• What business owners (including RIA owners themselves, as well as business owners whom advisors serve) can consider when planning a business exit strategy, and why it's best to start planning several years before the date of the expected sale
• How the headline "multiple" of an M&A deal can be misleading, since it may contain caveats like unrealistic performance-based incentives that make the true economics of the deal less attractive for the seller

We wrap up with 3 final articles, all about advisor dress and office decor:

• Why the once-ubiquitous necktie has fallen out of fashion, even amid formal attire (although in the end it's not so much about what's in fashion as about what the advisor can wear to feel their best in front of clients)
• How advisors use their office décor to project their unique attributes and spark conversations with clients, from personal mementos to an outdoor natural environment
• Why even though advisors may feel most 'authentic' in casual attire, they may still find it easier to land clients (particularly if they have less experience or professional accomplishment) if they dress similarly to what clients may expect an advisor to wear

Enjoy the 'light' reading!

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