Archives Of Weekend Reading For Financial Planners

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with a recent survey indicating that a majority of advisors are viewing new client acquisition as their primary challenge in the current competitive environment for financial advice (followed by compliance and technology management) and suggests that, in addition to reviewing their marketing tactics to see if they are reaching their ideal target prospects, firms might consider evaluating their service offering to determine whether it meets the unique needs of its ideal clients or whether it blends into the growing category of firms offering "comprehensive" financial advice.

Also in industry news this week:

• A survey indicates that workplace retirement plan participants with financial advisors tend to save more than their non-advised counterparts and that a strong majority of participants overall are interested in receiving professional advice (with more than 3/4 of this group expressing willingness to pay for it)
• A look at potential regulatory changes for financial advisors in 2025, from adjustments to the SEC's Custody Rule to greater guidance regarding its Marketing Rule

From there, we have several articles on retirement planning:

• Given research finding a positive correlation between wealth and longevity (though there are diminishing returns at the highest levels of wealth), financial advisors are well-positioned not only to help clients grow their wealth, but also to use it in a way that promotes their health
• How advisors can work with clients to create (and revise) an "aging plan" that ensures their needs are met and interests are protected as they grow older
• Several research studies link cognitive decline to poorer investment performance, highlighting the value of advisors to help clients manage their assets as they age (and to identify warning signs of mental deterioration)

We also have a number of articles on practice management:

• Why a "personal goodwill" sale could be a win-win proposition for employee advisors (allowing them to sell their 'book of business', even when they don't technically own the client agreements) and acquiring firms alike
• How selling founders can best approach conversations with clients, from "flipping the script" and treating it as a celebration of a major accomplishment to highlighting the additional time they will have to work directly with their clients when they no longer have to run the business as well as
• Six RIA valuation drivers that go beyond revenue and profitability, including the selling firm's growth trajectory as well as its client (and staff) demographics

We wrap up with three final articles, all about New Year's resolutions:

• A five-step plan to making New Year's resolutions that are likely to stick
• A guide of non-traditional resolutions for those looking to set goals that are out of the ordinary
• How a structured process that incorporates qualitative markers of success (and the buy-in of team members) can increase the likelihood an advisory firm achieves its annual goals

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 according to a recent study by DeVoe & Company, only 42% of RIAs surveyed have written succession plans and either have begun to implement them or have already done so. The report suggests this might be due in part to increased RIA valuations and the assumption of some firm founders that next-generation employees won't be financially able to buy out the firm from them, though additional data indicates that many firms don't have career paths in place that could help next-generation advisors envision their path to firm ownership.

Also in industry news this week:

• According to a recent survey, advisors are putting an increasing share of client assets into model portfolios, allowing for customization and time savings that advisors appear to be using to provide more comprehensive planning services
• RIA M&A deal volume saw an annual record in 2024 as a lower cost of capital, increased valuations, and continued competition among RIA aggregators encouraged more transactions

From there, we have several articles on retirement planning:

• Morningstar has released its annual estimate of the safe fixed withdrawal rate for new retirees, though the analysis suggests retirees (perhaps with the help of an advisor) could increase this rate through a more flexible withdrawal strategy
• How certain retirement savers between the ages of 60 and 63 will be able to make "super catch-up" contributions in 2025 and beyond
• A recent study indicates that most retirees claim Social Security benefits in the year they stop working, though those that delay can potentially benefit from a larger monthly check and tax planning opportunities

We also have a number of articles on insurance planning:

• Why some wealthy homeowners have been unable to secure sufficient property insurance coverage
• Why some clients might reevaluate their umbrella insurance coverage options amidst elevated claim expenses
• How advisors can add value for clients by helping them consider the relationship between deductibles and the "pseudodeductibles" on their insurance policies and the premiums they pay

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

• While some of the 'hottest' sleep trends of 2024 might be tempting to try, most are relatively untested, and some could potentially lead to worse sleep
• While exercise and good sleep can be part of a healthy lifestyle, the interaction between these two activities can be complicated for some individuals
• Why some individuals' efforts to maximize the quantity and quality of their sleep can sometimes backfire, leading to more stress and worse sleep

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 CFP Board announced a series of proposed changes to its certification requirements, including an increase in required Continuing Education (CE) hours for current certificants to 40 hours every two years (up from the current 30 hours) and, for candidates for certification, a tightening of the Experience requirement (so that qualifying experience for the 6,000-hour "Standard Pathway" would be required to address at least three (rather than just one) of the seven primary elements of the financial planning process to ensure that candidates are engaged. Together, these proposed changes (which are currently open for public comment) suggest CFP Board is seeking to ensure that those with the marks not only have sufficient education and experience upon receiving them, but also maintain and sharpen their skills over the course of their careers.

Also in industry news this week:

• A benchmarking study from Charles Schwab shows that median compensation for financial planners at RIAs is well into the six figures, though actual salaries appear to vary widely
• The U.S. Senate appears poised to pass legislation that would eliminate the long-established WEP and GPO provisions and increase the Social Security benefits of many state and local workers in the process

From there, we have several articles on investment planning:

• While index funds are often viewed as 'passive' investments, advisors can add value for their clients by exploring the key differences in how certain funds are structured
• A review of the academic literature on whether historical prices can help determine future investment returns
• While the use of model portfolios can be a time-saving alternative for advisors compared to creating custom portfolios for each client, a study of return data suggests that those using them to improve performance could be disappointed

We also have a number of articles on advisor marketing:

• How creating a marketing calendar can help advisors improve their efficiency and prevent important tasks from falling through the cracks
• Three advisor marketing tactics that don't come with a hefty price tag for advisors
• How advisory firms can align their websites to match the needs and personalities of their ideal target clients

We wrap up with three final articles, all about financial lessons for children:

• Financial literacy lessons parents can offer at each stage of their children's development
• How parents can approach talking about their own financial situation with their kids, from the time they are in elementary school to when they become adults
• Why the greatest gifts parents can offer their children might not come with a bow on top

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 indicates that surveyed advisory firms that raised their fees in the last year saw almost identical 97% client retention rates as firms that lowered their fees (with the firms raising their fees bringing in more revenue in the first two years after doing so), suggesting that some growing firms might consider raising their fees (commensurate with the value they are providing their clients) to ensure they "scale up" (growing revenue at a faster pace than their expenses) rather than just 'size up'.

Also in industry news this week:

• While the SEC has had the power to restrict mandatory arbitration clauses in RIA client agreements for more than a decade, an advisory committee meeting this week suggests support for such a measure isn't unanimous
• CFP Board saw a record number of exam-takers during 2024, reflecting recognition of the professional and financial benefits that can come from earning the CFP certification (for advisors and their firms alike)

From there, we have several articles on retirement planning:

• Recent survey data indicate that many near-retirees have a difficult time estimating the amount of savings they need to retire, confirming the valuable role for advisors in retirement income planning
• A study suggests that pre-retirees underestimate their healthcare costs in retirement by more than 50%, indicating that advisors can add value by providing more realistic estimates and assessing the best Medicare coverage for their retired clients
• How advisors can work with clients to create realistic retirement budgets that reflect many categories of expenses clients might underestimate

We also have a number of articles on investment planning:

• A hierarchy of four types of investment mistakes, from "annoying" mistakes that lead to regret to "endgame" mistakes that can threaten an individual's retirement
• Why a 50% rule of thumb could be an effective regret minimization tactic for a variety of financial planning decisions
• How advisors can support clients targeted by investment schemes that are "too good to be true"

We wrap up with three final articles, all about gift giving:

• How one firm creates "wow" moments for its clients when it comes to giving gifts to commemorate special occasions
• Creative client holiday gift ideas for advisory firms, from tickets to a local arts performance to charitable contributions to causes that are important to the clients
• Why buying a "special version of an everyday thing" can be a particularly effective strategy when it comes to giving gifts

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-elect Trump plans to nominate former Securities and Exchange Commission (SEC) Commissioner Paul Atkins as the next SEC chair, replacing Gary Gensler. Atkins' previous time on the commission and more recent statements suggest that he will take a more circumspect approach to financial regulation compared to Gensler and could look to limit disclosure requirements (including those related to advisor compensation for the sale of certain financial products) as well as the number and size of penalties issued against SEC-regulated firms. Though ultimately, while a slower pace of regulation might be a relief for financial advisors who faced a wave of proposed rules during Gensler's tenure, a more hands-off regulatory approach could open the door for abuses that could ultimately lower the reputation of the financial advice industry as a whole in the minds of consumers (though a lighter burden of regulatory enforcement on RIAs themselves could encourage more advisors to move to the RIA channel, perhaps accelerating the shift towards fiduciary advice?).

Also in industry news this week:

• A recent survey found that financial advisors who have recently switched firms are overwhelmingly satisfied with their move, with firm technology playing a key role both in the decision to leave and their satisfaction with their new firm
• A Federal court has issued an injunction against the Corporate Transparency Act, putting a (possibly temporary) hold on the previous January 1 deadline for businesses subject to the law to file Beneficial Ownership Information reports

From there, we have several articles on Health Savings Accounts (HSAs):

• A survey indicates that while HSAs are becoming increasingly popular, consumers might not be tapping into their full benefits, particularly when it comes to investing to pay for future medical expenses
• How financial advisors can add value for clients by helping them avoid potentially costly pitfalls related to HSA contributions and distributions
• HSA strategies for married couples who have health insurance coverage through their own High-Deductible Health Plans

We also have a number of articles on advisor marketing:

• How advisory firms can become "lighthouse brands" that attract clients through a clear promise, strong product, great people, and passion for what they do
• Why showcasing the personalities of firm staff, rather than just focusing on the dollars and cents of the value of financial planning, could be the key to building trust with prospects early on in the marketing process
• How professionals can refresh their personal brands, from setting a personal vision to getting feedback from trusted clients and colleagues to better understand how others currently see them

We wrap up with 3 final articles, all about overcoming procrastination:

• The biological roots of procrastination and why this tendency can be hard to overcome
• 3 strategies for overcoming a procrastination habit, from breaking down a challenge into bite-sized pieces to tethering a difficult task to a more enjoyable activity
• How advisors can avoid getting stuck on daily 'to-do lists' and move forward on longer-term goals

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 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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