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 the Financial Planning Association and Money.com are planning to publish a “Best Financial Advisors” list based on advisors’ education, credentials, and experience, as well as harder-to-quantify areas such as trust factors and client communication. Going beyond FPA’s existing PlannerSearch tool, the narrowed-down list is meant to help consumers identify a focused subset of the most reputable planners. Though given that the list will be limited to FPA members who complete a detailed questionnaire, it might not be a truly comprehensive list of the ‘best’ planners… and even more impactfully, could upset current FPA members who pay their dues like every other member but are told they’re “not good enough” to be recognized by their own membership association as one of the “best” to Money.com’s millions of consumers?

Also in industry news this week:

• Legislation that has passed through the U.S. House of Representatives and is now being considered in the Senate would increase the number of firms classified as “small entities” and would require the SEC to assess the impact of proposed regulation on this newly enlarged class of investment advisers (which tend to have fewer compliance staff and resources available compared to larger firms)
• A recent study indicates that many retirees, particularly those that engage in a “partial retirement”, experience spending volatility at a time when sequence of return risk is the most threatening

From there, we have several articles on tax planning:

• The IRS released its annual “Dirty Dozen” list of tax scams, many of which target wealthy individuals, including abuses of certain trusts, monetized installment sales, and improperly valued art donations
• How advisors can help clients avoid falling prey to tax scams, from encouraging good cyber hygiene to serving as a second opinion on questionable tax strategies that have been pitched to the client
• How advisors can support clients in evaluating the qualitative and quantitative consequences of engaging in geographic arbitrage to reduce their state income tax bills

We also have a number of articles on clients going through a divorce:

• How advisors can add value for clients going through the divorce process, from offering an empathetic ear to analyzing the impact of a proposed division of assets
• The unique challenges (and rising incidence) of “gray divorce” and the key planning topics for advisors and their clients in this situation to address
• The ethical considerations for financial advisors when client couples are going through a divorce

We wrap up with three final articles, all about career satisfaction:

• How the concept of the “hedonic treadmill” can help explain why reaching professional goals often leads to fleeting satisfaction, and the alternative practices that can lead to enduring happiness
• Why letting go of the “pursuit of happiness” might be more likely to lead to greater contentment than trying to cross off as many items as possible from a ‘to-do’ list
• 3 mindset shifts that can help advisors find satisfaction from their (incremental) professional accomplishments

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 growing cybersecurity threats targeted at the finance industry, the SEC adopted final amendments to Regulation S-P that will require SEC-registered RIAs and other financial firms to develop, implement, and maintain written policies and procedures for an incident response program to detect, respond to, and recover from unauthorized access to or use of customer information. Further, firms will be required to include procedures to notify clients whose sensitive information was or is "reasonably likely" to have been accessed or subject to unauthorized use. And while firms will have between 18 and 24 months to comply with the amendments, adopting strong cyber hygiene practices could help firms proactively mitigate cyber risks, better protecting client data and maintaining the trust of their clients in the process.

Also in industry news this week:

• Why the Federal government is proposing new rules targeting the use of donor-advised funds that could impact financial advisors who work closely with them
• A recent report indicates that while financial advisory firms prioritize their client experience, they often make such decisions without consulting their clients first

From there, we have several articles on investment planning:

• Why the current moment could be an attractive environment for investors considering an allocation to intermediate-term bonds
• How fiscal pressures could keep bond yields' higher for longer' and make certain fixed-income investments less attractive
• Why market forecasts are often incorrect, even when they are based on seemingly sensible fundamental analyses

We also have a number of articles on practice management:

• Financial advisory industry veteran Joe Duran offers a 4-part framework for advisors to achieve greater organic growth in the years ahead
• How "embracing discomfort" can help an advisory firm break out of its normal routine and boost its growth trajectory 
• 5 shifts transforming growth for advisory firms, from using technology as a growth driver and capacity builder to leveraging the remote work environment to attract clients regardless of geography

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

• Strategies to negotiate a higher salary, from finding senior advocates to lobby on one's behalf to obtaining a competing job offer as leverage during raise discussions with one's current employer 
• Why autonomy is a key factor in determining job satisfaction and overall wellbeing and what this means for financial advisors
• Why one company publishes every employee's salary online and how doing so has helped it and its staff thrive

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 while overall social media engagement for financial services companies was down in 2023 compared to the previous year, firms boosted their engagement through posts that were entirely original content (rather than sharing third-party content), spoke to the firm's or advisor's principles (with posts responding to current news topics lagging), and were text-based (which was particularly effective for wealth management professionals posting on LinkedIn). Altogether, the study suggests that social media engagement is driven more by the quality (and originality) of the advisor's content, rather than the quantity of posts. 

Also in industry news this week:

• The SEC this week announced a proposed rule that would require RIAs to collect and verify their clients' personal information in an effort to prevent illicit activity, though many firms likely are taking many of these steps already 
• Why larger RIAs and those that have been acquired tend to have worse client and staff turnover than other firms

From there, we have several articles on retirement planning:

•  A recent study indicates that while the median retirement age for current retirees was 62, workers today expect to be employed well past this age, suggesting that some might not be financially prepared for a (perhaps involuntary) earlier-than-expected      retirement
• 7 ways advisors can help their clients plan for an early retirement, from helping clients discover the true motivation behind their desire to presenting the full range of potential outcomes for a retirement that might last 40 years or longer
• How incorporating information about a client's chronic health conditions can lead to more accurate life expectancy assumptions and retirement income planning 

We also have a number of articles on investment planning:

• How the popularity of model portfolios have taken off over the past few years, allowing advisors to spend more time with clients on planning topics beyond investment management 
• While model portfolios can boost the efficiency of an advisor's investment planning process and allow them to create tailored client portfolios without starting from scratch, they do require some hands-on work by advisors using them
• How software can help advisors choose the best model portfolio options for their clients' needs and reduce the amount of time it takes to implement and manage them

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

• What individual firms, and the financial planning industry as a whole, can do to stave off an impending shortage of qualified advisors
• How the financial planning industry can serve as a role model, not only for other types of      businesses, but also for how society as a whole views interpersonal relationships and the definition of success
• How relatively smaller RIAs can stand out amidst a convergence in the practices of wealth management firms across the size spectrum 

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 analysis from Morningstar suggests that the Department of Labor's (DoL's) new Retirement Security Rule (aka Fiduciary Rule 2.0) could save retirement plan participants $55 billion over the next 10 years (due to an expectation of more low-cost fees being offered in plans) and those rolling over workplace plans into IRAs to purchase annuities another $32.5 billion (thanks to expected reductions in commissions and the embedded costs in these annuities). Nonetheless, for these potential benefits to come to pass, the rule will likely have to survive legal challenges, including a lawsuit filed led by an insurance industry lobbying group seeking to halt implementation of the rule (which is set to take effect in September), which argues that the rule violates the U.S. Congress' intent in passing ERISA and that the DoL overstepped its authority in adopting it.

Also in industry news this week:

• The latest Social Security trustees report offered a slightly rosier picture for the health of the various Social Security trust funds thanks to improved economic conditions, though they warned that time is running out for legislators to take action to ensure the system will be able to pay out full benefits beyond the early 2030s
• RIA custodian Altruist has raised $169 million in its latest funding round, giving it a $1.5 billion valuation and added capital to fund technology and staffing upgrades as it seeks to challenge Schwab and Fidelity in the RIA custodial space

From there, we have several articles on retirement planning:

• Why considering a client's retirement time horizon and spending flexibility could lead to more accurate (and often higher) safe withdrawal rates than the simpler "4% rule" 
• While many financial advisors focus on preventing clients from depleting their portfolios in retirement, they might be overlooking the 'risk' that clients might underspend and not achieve their retirement lifestyle goals
• How the creator of the "4% rule" is now incorporating inflation and equity valuations when calculating safe withdrawal rates

We also have a number of articles on advisor marketing:

• A 4-step process that can help financial advisors craft better stories to use with clients
• The best and worst times to use emotional storytelling to communicate an important message to clients
• How effective storytelling can increase the likelihood that an advisor's message will resonate with clients amidst a sea of potential information sources 

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

• How taking a vacation can provide a sense of clarity that can lead to positive changes in one's 'normal' routine
• How to decide how much to spend on a vacation, from planning out a year's worth of trips in advance to being aware of "luxury creep'" 
• Why money spent on vacations and other shared experiences could be considered an investment in an appreciating asset

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 nearly a third of advisors in the independent broker-dealer channel have considered transitioning to the RIA channel during the past year as they seek higher payouts and not just "independence" but greater autonomy over how they run their businesses and serve their clients. At the same time, the study found that potential breakaway brokers view the operational and compliance requirements of transitioning to and doing business as an RIA as a major concern, which could lead some of them to either leverage the growing number of service providers available to RIAs, or perhaps join an existing corporate RIA platform to take advantage of its existing infrastructure.  

Also in industry news this week:

• Large asset managers offering hybrid digital-human advice services are eating into the market share of purely human advisors, signaling that a smaller firm's ability to offer a differentiated value proposition could be a key to success in the coming      years
• A recent study indicates that tech-forward advisory firms not only are seeing greater client and AUM growth than are other firms, but also are associated with greater advisor income and job satisfaction

From there, we have several articles on healthcare planning in retirement:

• Why framing Health Savings Accounts (HSAs) as "Medical IRAs" could lead clients to better leverage their potential for tax-advantaged, compound returns and have more money available for healthcare spending in retirement
• How financial advisors can help clients evaluate the health insurance options available in early retirement, from staying on their previous employer's plan through COBRA to obtaining a (potentially subsidized) plan on their state health insurance exchange
• How advisors can adapt clients' financial plans to account for the unpredictable healthcare expenses they will experience in retirement

We also have a number of articles on practice management:

• How the ongoing competition for advisor talent and a lack of viable successors at many firms could drive a flurry of RIA M&A activity in the coming years
• Instead of pursuing an outright sale, a 'merger of equals' can give owners of firms with similar sizes and compatible cultures an opportunity to boost profitability and scale relatively quickly while maintaining a high degree of control, though successfully consummating a deal requires delicate negotiations between the potential      partners 
• A review of the revenue and profitability metrics that are most often used to value RIAs, and how selling firm owners can maximize the ultimate payout they receive by negotiating the underlying terms of the deal 

We wrap up with 3 final articles, all about handling challenging political conversations:

• How preparation and empathetic listening skills can help a financial advisor prevent political conversations from derailing client meetings
• How advisors might respond when clients want to make major portfolio changes based on the upcoming presidential election
• How teams can create ground rules to promote constructive discussion on political issues and other challenging topics

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 Department of Labor released the final version of its Retirement Security Rule (a.k.a. the Fiduciary Rule 2.0), which is set to go into effect in September and (if it survives anticipated legal challenges) would represent a significant shift toward greater fiduciary standards in the financial services industry, including by defining as a fiduciary act a one-time recommendation to roll funds from a company retirement plan to an Individual Retirement Account (closing what historically was a loophole that the fiduciary obligation only applied to "ongoing" advice, such that one-time sales transactions avoided its scope).

Also in industry news this week:

• The Federal Trade Commission released a final rule that would ban most non-compete agreements, which could lead to an increasing number of non-solicit agreements (and, potentially, lawsuits regarding their enforcement) between financial planning firms and their advisors
• The Securities and Exchange Commission issued a risk alert outlining how some investment advisers are failing to comply with its marketing rule, from making misleading statements about adviser awards to claiming that a firm operates free of conflicts of interest

From there, we have several articles on client communication:

• How jargon checks, standardized communication frameworks, and post-meeting surveys can help advisors overcome the "curse of knowledge" when communicating with clients
• 5 mistakes that can undermine client meetings, from asking too many closed-ended questions to engaging in conversations on political topics
• How paying attention to the phrases and idioms clients use frequently can help advisors build trust and rapport

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

• How the explosive growth in many of the 'hidden' costs of homeownership could impact clients' budgets 
• How financial advisors can help clients analyze the choice of whether to rent or buy a home, from modeling unknowable financial variables to helping them explore the non-financial considerations of the decision 
• How advisors can add value for clients navigating a continued elevated mortgage rate environment

We wrap up with 3 final articles, all about effective networking:

• How financial advisors can network more effectively, from tactics that can make conversations more memorable to choosing when to enter an existing conversation
• How advisors can evaluate financial advisor conferences and other networking opportunities to make the most worthwhile investments of their time and money
• Tips to master the art of small talk, from seeking out common interests to managing the inevitable end of the conversation with minimal awkwardness

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 announced that it has crossed the milestone of 100,000 CFP professionals in the United States, and despite having just celebrated its 50th anniversary last year, just set a record high in the number of advisors sitting for the CFP exam this March, reflecting the value many financial advisors and consumers place on the brand, including the requirements to obtain it as well as the standards CFP professionals must follow (though, as CFP Board has recognized, there is potential room for it to improve in both of these areas!).  

Also in industry news this week:

• The Office of Management and Budget (OMB) has completed its review of the Department of Labor's new "fiduciary rule", indicating that it could be released in the coming days or weeks (though, like its predecessors, its ultimate disposition is likely to be determined in the courts)
• The IRS announced this week that it is excusing Non-Eligible Designated Beneficiaries who inherited IRAs and are subject to the "10-year rule" to distribute these accounts from having to take RMDs again in 2024 (just as it did for 2021, 2022, and 2023) and indicated that Final Regulations regarding RMDs for those in this position could be coming this year 

From there, we have several articles on retirement planning:

• 4 unique risks retirees face when drawing down their assets, from sequence of returns risk to tax risk, and how financial advisors can help clients mitigate them 
• How the differential effects of the "Great Recession" have led to younger Baby Boomers having fewer assets than their older Boomer counterparts
• How financial advisors can help their clients identify and avoid a potential retirement income "death spiral", whereby a client's assets are depleted over the course of only a few years

We also have a number of articles on financial advisor marketing:

• 5 relatively low-cost marketing tactics for financial advisors, from expanding the types of Centers Of Influence they approach to leveraging "social proof" to attract clients 
• How advisors can boost the relevancy and effectiveness of the "Calls To Action" (CTAs) on their website
• Strategies advisors can use to build urgency and help reluctant prospects overcome their hesitance to sign on to become clients

We wrap up with 3 final articles, all about online security:

• A recently released feature can help protect iPhone owner's private data from thieves who are able to access their phone and passcode  
• How activating 2-factor authentication and other security measures can help protect users' social media accounts 
• Why the "private browsing" feature of internet browsers does not provide the level of anonymity users might assume

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 has found that many small- and mid-sized advisory firms that use "supported independence" platforms for their technology and back-office needs, have the potential to see greater growth in the years ahead given the efficiencies gained (and potential cost savings compared to creating a tech stack and hiring their own staff 'a la carte'), and give aspiring firm owners a platform to get their firms up and running quickly (whether breaking away or starting anew). Implying that part of the potential appeal to such support platforms is not simply about whether it's more cost-effective to use their tech and services to replace the advisor's own overhead costs, but that it's easier to scale up quickly as a fast-grower by leveraging incrementally more of the support platform's capabilities than needing to take the time to manage their own hiring and technology additions.

Also in industry news this week:

• A recent study indicates that advisors charging clients on a monthly subscription basis hiked their fees by an average of 6% in 2023, raising the salience of how advisors can most effectively communicate fee increases to clients 
• A survey suggests that while financial advisors are increasingly aware of Artificial Intelligence (AI)-powered software tools and are frequently leveraging them in their personal lives, they appear to be more skeptical about using them to craft financial recommendations

From there, we have several articles on talent management:

• How financial advisory firms can expand the pool of candidates for open positions, from leveraging employees' professional networks to recruiting firm clients with relevant professional skills
• How effective leadership techniques, including inclusive vision-setting and giving employees autonomy, can help promote employee retention
• A recent report identifies actions financial planning firms can take to be more attractive (and fair) to women advisors, from boosting "sponsorship" programs that can help women advance within the firm to creating a culture that rewards performance rather than time spent in the office

We also have a number of articles on long-term care insurance:

• Why starting conversations about long-term care needs with a discussion of the client's care preferences rather than the products that might meet their needs could be a more effective approach for financial advisors
• Why costs for long-term care facilities tend to go well beyond the monthly rent charged and how advisors can adjust financial plan assumptions to reflect these expenses
• How advisors can help clients choose between traditional long-term care insurance policies and hybrid policies that combine long-term care coverage with life insurance

We wrap up with 3 final articles, all about health and wellness:

• How light movement, from a walk outside to climbing a few flights of stairs, can boost creative thinking
• Why sustained, moderate-intensity exercise can be particularly effective in boosting an individual's fitness and overall health
• Why, at a time when individuals can access increasing amounts of biometric data, constantly monitoring one's blood sugar levels might be counterproductive 

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 customer arbitration claims related to the SEC's Regulation Best Interest (Reg BI) nearly doubled between 2022 and 2023, suggesting that greater awareness among investors of the increased standards for broker-dealers and their registered representatives could lead to greater accountability for violations of the regulation. Further, data from FINRA also indicate that claims related to bond investments remain elevated, perhaps spurred by losses in the fixed income portions of customer portfolios amidst the rising rate environment, potentially serving as a warning to RIAs as well that their clients (and regulators) could take a closer look at advisor's recommendations related to bond allocations. 

Also in industry news this week:

• The SEC has penalized 2 firms for false and misleading claims related to their use of Artificial Intelligence (AI), signaling the regulator's interest in advisers' "AI-washing" practices
• A research report suggests that fee-only RIAs with strong organic growth and enhanced service offerings for their clients are likely to be the most attractive acquisition targets in the coming year

From there, we have several articles on investments:

• While buffer ETFs allow investors to participate in (a portion of) the upside of the stock market while mitigating losses (up to a limit), investing effectively in these funds can be complicated and expensive
• Structured notes could be attractive for certain clients seeking investment income, but they come with a range of risks, from liquidity concerns to the potential for the issuing bank to default
• Investment strategies betting on continued muted volatility are gaining in popularity, though observers worry that some of these wagers could exacerbate a future market downturn

We also have a number of articles on branding:

• Why company culture is the foundation of a firm's brand and how leaders can evaluate whether their firm is on solid footing
• How advisory firms can maintain their unique brand while taking advantage of generative AI tools like ChatGPT
• How advisors can build their personal brand and link it to their professional identity to better attract clients

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

• The primary factors that lead to employee burnout and what firm leaders can do to create a more sustainable work environment 
• Why saying 'no' to requests and opportunities more often can lead to less stress, and how individuals can overcome the psychological hurdles of doing so  
• Tactics for overcoming "workaholism", from conducting regular self-check-ins to getting more sleep and exercise

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 suggests Americans are increasingly prioritizing work-life balance over higher salaries, with 2/3 of respondents indicating that they would rather work at a job that they loved rather than a job they disliked but paid more money. Nonetheless, Kitces Research suggests that when it comes to financial advisors, those with sufficient experience can often have both, with thriving advisors earning more and working fewer hours!

Also in industry news this week:

• • With the new “T+1” rules for trade settlements will go into effect in late May, the SEC has issued a risk alert for broker-dealers and RIAs outlining the requirements they face and areas of focus for the regulator during upcoming examinations
  • A recent survey suggests that while client satisfaction with their financial advisors increased during 2023, more than a third of wealthy Millennials indicated they are planning to change advisors in the coming year

From there, we have several articles on prospect and client communication:

• How advisors can adapt their communication styles to match the personality types of prospects and clients
• Why focusing on diagnosing a prospect’s financial problems, rather than working to build a personal relationship, could be a more effective strategy to win clients
• How to craft an effective advisor website biography to show an advisor’s humanity and help prospects overcome their fear of reaching out for help

We also have a number of articles on wealth management:

• How building a team of advisors – including financial, legal, and mental health professionals – can help the recipient of a financial windfall manage both the technical and psychological aspects of their newfound wealth
• How financial advisors can support clients in processing the emotional and financial ramifications of receiving an inheritance
• How advisors can help newly wealthy clients avoid common pitfalls, including insufficient insurance coverage and the temptation to pay household workers ‘under the table’

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

• How chance hallway conversations led to one of the biggest breakthroughs in artificial intelligence technology
• How the interstate highway system not only allowed for faster travel around the country, but also facilitated the growth of the economy as a whole and the rise of national chains
• Why malls are turning to high-end stores, gyms, and experiences to reinvent themselves at a time when many traditional shopping centers are struggling

Enjoy the ‘light’ reading!

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