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, according to a recent survey, RIAs are considering metrics for growth other than assets under management, from the number of clients to diversifying the services they offer. And given that growth can create additional time burdens for advisors, many advisors are looking to automation as a way to gain efficiencies as they scale.

Also in industry news this week:

• How RIAs appear to be increasingly pushing back against proposed rules and enforcement actions from the SEC
• How one broker-dealer reminded its advisors that they do not necessarily have full independence when it comes to selling their firm

From there, we have several articles on spending:

• Why now could be a good time to buy a house despite elevated mortgage rates
• Why some of the most valuable 'luxury goods' money can buy do not have brand names
• How advisors can help clients transition from savings mode during their working years to spending down their portfolio in retirement

We also have a number of articles on management:

• 7 books that can help new managers lead effective teams
• How to create an employee onboarding process that can improve retention
• How advisory firm leaders can take advantage of the trend of 'boomerang employees'

We wrap up with 3 final articles, all about personal growth:

• Why taking a massive leap in personal growth can be rewarding, despite the risks
• Why self-compassion is more effective than self-criticism when it comes to overcoming mistakes
• A step-by-step process for finding and developing your passion without having to spend 10,000 hours working on it

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week’s edition kicks off with the news that the CFP Board of Standards launched its 1st ad campaign, dubbed "It’s Gotta Be A CFP", following its transition to a 501(c)(6) organization. In a change from previous campaigns, the first ad directly recommends that consumers seek out a CFP professional for financial advice, and future ads could more directly explain the benefits of earning the CFP marks.

Also in industry news this week:

• Top Democratic Senators are urging the Treasury Department to crack down on a range of estate planning strategies for high-net-worth individuals, including GRATs and IDGTs
• Amid fallout from recent bank failures, both Republicans and Democrats are considering whether current FDIC insurance limits should be increased

From there, we have several articles on retirement planning:

• Why contributions to Roth accounts can sometimes have greater uncertainty than traditional contributions in terms of their after-tax accumulation despite not being affected by future tax rate changes
• How the 'funded ratio' metric can help advisors create effective retirement spending recommendations
• A comparison of a range of variable spending strategies in retirement, from a 'floor-and-ceiling' approach to a 'ratcheting rule'

We also have a number of articles on advisor marketing:

• How to optimize the 5 most important pages on an advisory firm website
• 4 tools advisors can use to improve their website’s search visibility
• How advisors can create and deploy effective keywords to help consumers find their websites when searching online

We wrap up with 3 final articles, all about changes to professional credentials:

• The CFA Institute has unveiled a slate of changes to its certification process, from incorporating practical skills modules to new job-focused pathways in private wealth and private markets
• Why some states are considering reducing the higher education requirements to become a CPA
• CFP Board has announced the members of its new standards commission, which will review and evaluate its competency requirements for Education, Examination, Experience, and CE to earn and maintain the CFP marks

Enjoy the 'light' reading!
Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that just weeks after introducing its own self-clearing platform, RIA custodian Altruist announced this week that it is acquiring fellow custodial platform Shareholder Services Group (SSG), a move that will make the combined RIA custodial platform the third-largest in terms of RIAs served. This is significant, as most ‘upstart’ RIA custodians have struggled to gain material traction in a hyper-competitive RIA custodial landscape, but Altruist appears to be winning small-to-mid-sized firms in particular by cutting down on their outside technology costs with its unique ‘all-in-one’ that has the core portfolio management and performance reporting components built in directly to the platform.

Also in industry news this week:

• How the collapse of Silicon Valley Bank could impact Federal Reserve policy and market performance going forward
• Why advisors could soon be an important access point for consumers looking to add private investments to their portfolio

From there, we have several articles on the collapse of Silicon Valley Bank (SVB):

• A play-by-play of how SVB went from a rapidly growing regional bank to a failed one in mere months
• How banking practices could change for consumers in the wake of the SVB collapse
• How government officials have attempted to balance the stability of the banking system while avoiding ‘moral hazard’

We also have a number of articles on cash flow and spending:

• How advisors can help clients create a cash management plan that keeps their bank deposits within FDIC limits and earns them a relatively strong return
• Why being ‘rich’ goes well beyond where one stands in the national income distribution
• A new study suggests that while happiness increases with income on the whole, unhappy people are less likely to see happiness gains once they reach higher income levels

We wrap up with 3 final articles, all about living a healthy lifestyle:

• Recent research upends previous assumptions about how one’s metabolism changes over time
• Why walking can bring many of the health benefits of more strenuous exercise routines
• How short bursts of exercise throughout the day can lead to significant health benefits

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that President Biden released his latest budget proposal this week, which calls for a range of tax increases on higher-income and wealthier taxpayers to fund deficit reduction and the president’s spending priorities. While the budget almost certainly will face stiff resistance in a divided Congress, proposals that could affect financial advisors and their clients include increasing the top income and capital gains tax rates, raising the Net Investment Income Tax rate and applying it to pass-through income, and increasing the amount of the child tax credit.

Also in industry news this week:

• Altruist’s self-clearing custodial platform has gone live, offering RIAs of all sizes an alternative to larger, legacy custodians
• While the SEC is planning to increase the number of on-site examinations it conducts, the odds that a firm will experience an exam in a given year appear to be remaining steady

From there, we have several articles on tax planning:

• How advisors can add value to clients by helping them maximize the benefits of their Health Savings Accounts
• How the IRS could be preparing to finalize regulations that would require some beneficiaries with inherited IRAs to take RMDs this year
• Why higher interest rates affect the utility of a range of trusts used for estate and tax planning, from GRATs to QPRTs

We also have a number of articles on practice management:

• How competitive pressures and growth challenges could drive RIA M&A activity in the coming year
• A process that can help advisory firm owners craft a succession plan that matches their goals for their firm and for their own retirement
• The major role that emotions play in an advisor’s decision to sell their firm and how to prevent them from scuttling a deal

We wrap up with three final articles, all about the uses of Artificial Intelligence (AI)-enabled tools for advisors:

• How a new tool embedded in Microsoft Word can help advisors craft and edit content
• How advisors can use AI-enabled tools to more efficiently generate content ideas, proofread text, and create marketing videos
• Why ChatGPT could be a valuable tool to support advisor marketing, from creating ad copy to drafting prospect emails

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that amid economic and market headwinds, the pace of RIA M&A activity was slower in January and February compared to the same period last year. If this trend continues, 2023 would be the first year in more than a decade to see fewer transactions than the year before, though some industry observers continue to see significant appetite for deals.

Also in industry news this week:

• A recent FINRA arbitration ruling reaffirmed the ability of brokers operating in the independent broker-dealer model to take their clients with them when they change firms
• A bipartisan group of U.S. Senators is considering potential ways to shore up Social Security, from raising the retirement age to 70 to creating a sovereign wealth fund

From there, we have several articles on practice management:

• How advisory firms can leverage their CRM software to run a more efficient practice
• Best practices for firms to consider when choosing training programs
• Why getting back to basics, particularly when it comes to decision making, can help firms overcome challenging market conditions

We also have a number of articles on wealth:

• What being ‘upper-middle class’ actually means in dollar terms
• Why many consumers overestimate the size of the nest egg they will need to have a comfortable retirement
• How advisors and clients might change their expectations for fixed-income investments as interest rates and yields have risen

We wrap up with three final articles, all about taking action:

• Why trying to live a life with ‘no regrets’ can hinder self-improvement
• Why it is important to not let major ‘events’ distract from the overall ‘journey’, whether it is an interpersonal relationship or a client’s retirement
• How a willingness to take imperfect actions can help drive advisory firm growth

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the SEC’s proposed “Safeguarding Rule” would significantly increase the number of investment advisers deemed to have custody of client assets and increase paperwork requirements for advisers and qualified custodians, though the contours of a final regulation remain uncertain.

Also in industry news this week:

• Why the behavior of some TAMPs and investment advisers might have led the SEC to propose its new (and potentially burdensome) ‘outsourcing rule’
• Why independent broker-dealers could become major players in RIA M&A in the coming year

From there, we have several articles on advisor marketing:

• How to craft engaging calls to action on an advisory firm website
• Steps advisors can take to grow and manage an effective marketing email list
• 5 features that can make an advisor’s website a more valuable marketing tool

We also have a number of articles on tax planning:

• How advisors can help their clients avoid an IRS audit this tax season
• How major life changes, such as a move or a new job, can affect a client’s tax returns
• A review of the best tax preparation software tools for a variety of tax situations

We wrap up with three final articles, all about personal development:

• Why showing poise, the combination of style and substance, is often at the heart of a successful career
• Why it can be valuable to have “permission to suck” when it comes to trying new things
• Why a little bit of self-doubt can help individuals make better decisions

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that the SEC is proposing to expand the adviser custody rule beyond securities and funds to cover all assets in a client’s portfolio, including private securities, real estate, derivatives, and cryptoassets. Further, an investment adviser who can make trades on behalf of a client would be deemed to have custody of the client’s assets, which could substantively shift a very sizable portion of the wealth management RIA community under the custody rule, though it remains to be seen whether or what exact custody rule compliance requirements would be introduced for advisers who have custody through discretion but are still otherwise using third-party qualified custodians.

Also in industry news this week:

• A court ruling this week vacated Department of Labor guidance that a one-time rollover recommendation from a company plan to an IRA would trigger fiduciary duty requirements under ERISA
• Vanguard’s CEO this week indicated the firm plans to invest heavily in direct indexing amid the growing use cases for the strategy

From there, we have several articles on practice management:

• The tactics the most successful RIAs are using to attract and retain talent in the current tight labor market
• The practice management techniques that can help firms improve their long-term health rather than just short-term profits
• Recent advisor surveys suggest that while AUM remains the most commonly used advisor fee structure, an increasing number of firms are offering more than one fee model

We also have a number of articles on retirement planning:

• Survey data indicates that retirees are willing to be flexible with their spending, creating implications for retirement income planning
• How advisors can add value for clients by helping them make better Medicare decisions
• Why an advisor decided to buy an indexed universal life insurance policy for himself

We wrap up with three final articles, all about daily living:

• Why practicing gratitude can help one from overlooking some of the key influences of a happy life
• At a time when optimizing every minute of the day is in vogue, why focusing on just having “one good day” can be a more successful path
• How advisors can help clients avoid falling into a “deferred life plan” and make the most of their lives today

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that according to CFP Board leaders, “everything is on the table” when it comes to the organization’s announced competency standards review. Among others, one notable item that could be reviewed is the current certification requirement that a candidate must have attained at least a bachelor’s degree, which some observers have suggested limits the pool of potential CFP professionals at a time of high demand for advisor talent.

Also in industry news this week:

• The SEC this week released its 2023 examination priorities, which include its new marketing rule, Reg BI, and complicated investments
• The House of Representatives is considering legislation that would broaden the definition of who qualifies as an accredited investor and is potentially eyeing a role for financial advisors to help guide clients interested in private investments

From there, we have several articles on practice management:

• A structured approach firms can use to design a forward-looking org chart
• Why outsourcing certain operational tasks still requires ongoing work from firm employees
• How firms can get employee buy-in when making major business changes

We also have a number of articles on retirement planning:

• A study has found that retirement can lead to cognitive impairment, possibly as the result of reduced social engagement
• Why professionals might consider taking several mini-retirements throughout their careers
• A simple rule that can help individuals choose the best place to live

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

• Why internal meetings can be bad for both productivity and employee wellbeing, and how firms can make them better
• How one company benefited from canceling all meetings for an entire week
• Tactics firms can use to reduce the burden of meetings, from sending asynchronous videos to implementing ‘No-meeting Wednesdays’

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that the SEC has issued a risk alert outlining Reg BI-related deficiencies discovered during recent examinations of broker-dealers, from dual-registered advisors not clearly communicating whether they were acting as a commission-based broker or a fee-based investment adviser to firms failing to update their training and compliance systems to meet the requirements of Reg BI.

Also in industry news this week:

• Annuity sales hit record levels in 2022, possibly spurred on by volatile markets and rising interest rates
• A recent survey suggests that an overwhelming percentage of both employers sponsoring retirement plans and their employees are interested in receiving advice from financial advisors

From there, we have several articles on advisor marketing:

• How advisors can get more clients by devoting just two hours per month to marketing
• 5 research-backed tactics advisors can use to improve their marketing ROI
• How finding a ‘patient zero’ can help new firms market to their chosen niche

We also have a number of articles on investing:

• Why falling interest rates were not necessarily the key driver of investment returns during the past 25 years
• Why there might not be a rush among investors to fixed income investments, even as yields reach levels not seen in years
• While Indexed Universal Life policies have been insurance companies’ hottest products in recent years, economic headwinds and concerns about their utility could slow their growth

We wrap up with three final articles, all about Artificial Intelligence (AI):

• How AI could revolutionize a wide range of professions, from education to medicine
• How ChatGPT and other large language models can be used by investment professionals now and in the future
• How AI systems could both create greater efficiencies for human financial advisors and challenge current advisory business models in the years ahead

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that CFP Board announced this week that it is splitting into two separate organizations with the same leadership but different nonprofit statuses. By switching to 501(c)(6) nonprofit status, the new CFP Board of Standards will have expanded abilities to advance the planning profession through lobbying and more targeted advertising messages to grow the ranks of CFP professionals.

Also in industry news this week:

• Why cash management strategies could become increasingly important parts of an advisor’s value proposition in a higher-interest-rate environment
• Why improved returns on cash products could be a double-edged sword for some advisory clients following last year’s market volatility

From there, we have several articles on practice management:

• Why advisors could be the big winners when it comes to competition among custodians and the entry of software providers into the space
• Why rising interest rates might not be a major hindrance to RIA M&A activity in the year ahead
• How consumer behavior research can help advisors pick the best strategy for raising their fees

We also have a number of articles on cash flow and budgeting:

• Why spouses can benefit from having different views on money and how advisors can help foster positive communication between partners on financial issues
• How advisors can help clients shift the spending paradigm from ‘wants versus needs’ to considering the best strategies for achieving their spending priorities
• How advisors can help clients (and their children) understand the potential risks of using ‘buy now pay later’ services

We wrap up with three final articles, all about time management:

• Why trying to optimize downtime can lead to burnout
• A strategy for ensuring that relationships don’t fall by the wayside
• How remote workers can shake up their work from home routines

Enjoy the ‘light’ reading!

Read More...