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 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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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that the SEC has recently been cracking down on firms for recordkeeping failures related to electronic communications, including their use of text messaging with prospects and clients. Which could serve as a warning to firms to heighten their supervision of their advisors' texting practices and whether they are being recorded properly (perhaps with the help of available archiving tools)! 

Also in industry news this week:

• A recent survey suggests that advisors who best understand their prospects' and clients' unique needs and communicate their value and fees clearly could be best positioned to win and retain clients
• Why a dearth of advisor talent could spur additional M&A activity and 'poaching', and what firms can do to attract and retain team members 

From there, we have several articles on retirement planning:

• A survey indicates that financial and health planning in the pre-retirement years could lead individuals to have a more enjoyable retirement 
• Research suggests that individuals who want to (or have to) work after traditional retirement age will have opportunities to do so, though they might need to switch to a different field where their skills could be applicable
• A growing number of individuals are working into their 80s and beyond, with many choosing this path for the challenge and sense of purpose continuing to work can provide 

We also have a number of articles on the new "Spot" Bitcoin ETFs:

• The factors investors can use to determine whether investing in a Spot Bitcoin ETF is right for them and, if so, how to choose among the available funds 
• How the creation and redemption process of Spot Bitcoin ETFs differ from more traditional ETFs and what this means for the potential costs issuers and investors might pay 
• Why potential regulatory scrutiny might contributing to many advisors' reluctance to recommend Bitcoin ETFs for client portfolios

We wrap up with 3 final articles, all about real estate:

• How a recent settlement between the National Association of Realtors (NAR) and a class of homebuyers could upend how buyers and sellers pay for the services of real estate professionals 
• While both home buyers and sellers could benefit from lower commissions as a result of the recent NAR settlement, some buyers might face a cash crunch at closing
• How the recent NAR settlement could impact home prices as well as the negotiation dynamics between home buyers and sellers

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 final version of the Department of Labor’s (DoL) new “Retirement Security Rule” has been sent to the Office of Management for review, with the rule potentially going into effect in early 2025. While the final submitted text has not been released, some experts suggest that the DoL likely made few changes to its initial proposal, despite significant opposition from broker-dealers that could lead to the judicial system deciding the rule’s ultimate fate.  

Also in industry news this week: 

• CFP Board this week announced changes to its Sanctions Guidelines and revisions to its Fitness Standards that clarify the factors that determine how potential sanctions are determined and revise the framework use to determine whether a candidate is eligible to become a CFP certificant 
• The Financial Services Institute joined other trade groups in filing a complaint against the DoL’s independent contractor rule, arguing that it creates confusion about the status of many financial professionals who prefer to operate as independent contractors 

From there, we have several articles on tax planning: 

• The IRS has launched its free direct filing program, though it is currently limited to taxpayers in certain states and with relatively simple tax situations 
• Clients looking to rollover unused funds from 529 plans have the opportunity do so for both 2023 and 2024, with the deadline for 2023 fast approaching 
• President Biden’s budget proposal released this week includes a range of potential tax changes, from raising the top marginal rate to increasing the child tax credit 

We also have a number of articles on practice management: 

• RIA M&A activity appears to have picked up in the first quarter of the year, with a steady flow of interested buyers and sellers 
• Why integrating tech stacks, service offerings, and team cultures is crucial to the success of an RIA acquisition 
• How the headline purchase price often does not reflect the final price an RIA buyer pays and the amount the seller receives, highlighting the importance of careful negotiation of deal terms by both sides 

We wrap up with 3 final articles, all about Artificial Intelligence (AI) in the advisory industry: 

• How generative AI tools could transform the way knowledge workers, including financial advisors, operate, rather than replace them altogether 
• How lessons learned from the introduction of the digital spreadsheet can inform advisors’ future use of AI tools 
• How current advisor-facing software incorporates AI capabilities and why firm-specific tools might become more common in the future 

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 RIA clients of an insurance broker providing Errors & Omissions (E&O) coverage saw a 213% increase in claims paid in 2023, attributed to significant jumps in suitability claims (likely stemming from the 2022 market downturn) and claims related to wire fraud. Which suggests that financial advisory firms could potentially mitigate their potential exposure to future exposures by reviewing asset allocations with clients more frequently (to ensure they understand and approve of the advisor’s recommendations) and by maintaining strong policies and procedures related to client wire transfers (and ensure firm staff is trained on them!) to prevent fraud.

Also in industry news this week:

• A recent survey has found that a majority of prospective financial planning clients across all age brackets are open to working with a remote advisor, creating opportunities for advisors to grow their businesses and for clients to find the ‘best’ advisor for their needs, regardless of their location
• A federal judge has ruled that the Corporate Transparency Act, which requires small business entities such as LLCs and corporations to report identifying information on their "beneficial owners", is unconstitutional, raising questions about whether businesses (including certain non-exempt financial advisory firms) will be required to comply with its requirements

From there, we have several articles on practice management:

• Why many RIAs are experiencing high staff turnover and how a more deliberate approach when hiring could lead to more successful hires
• The key behaviors that can help a newly promoted manager succeed, including the need to set and communicate clear goals and the ability to provide regular feedback to team members (without micromanaging)
• How firms can avoid wrongful termination lawsuits, from establishing clear policies in employment agreements and employee handbooks to considering whether to offer departing employees a severance package

We also have a number of articles on investment planning:

• Why the well-known (and frequently judged) “60/40” portfolio could have a bright future, despite the poor returns it experienced in 2022
• While a diversified investment portfolio can offer significant risk-management benefits, it also tends to come with periods of underperformance that can be challenging for investors to withstand
• Why U.S. stocks have dominated their international counterparts during the past decade and whether it still makes sense to have exposure to international equities

We wrap up with 3 final articles, all about decision-making:

• Why research suggests that individuals make their best financial decisions in their early 50s and how advisors can support clients across the age spectrum based on their unique skills and weak points of view
• Why it’s important to recognize that there often is no “Secret Option C” when it comes to make a challenging decision with 2 distinct options, and how advisors are well-positioned to help clients overcome the tendency to put off these tough choices
• How a structured framework can help advisors make decisions when a seemingly unlimited number of options are available, from choosing a niche to deciding what to discuss when leveraging content marketing

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 Biden administration could seek to release the final version of the Department of Labor (DoL)'s proposed "Retirement Security Rule" this year, potentially with a January 1 effective date, to ensure it goes into effect before a potential change in administration. Nevertheless, given the contentious nature of the proposal as it currently stands (with the brokerage and insurance industries levying heavy criticism of the rule), its ultimate fate (including whether its scope might be narrowed) is likely to be determined in the courts.

Also in industry news this week:

• Financial scams involving social media and digital assets are on the rise, according to NASAA's annual enforcement report, and advisors can play a valuable role in helping their clients avoid becoming victims  
• A report suggests that firms with intentional, integrated tech stacks as well as those that are able to establish strong brand identities will be better positioned to succeed in the years ahead 

From there, we have several articles on practice management:

• A lawsuit alleges that several wealth management companies established an anti-competitive "no-poach" agreement that limited opportunities for their employees to change firms
• A separate lawsuit is challenging a firm's non-compete agreement, alleging that it goes too far in restricting employees' professional activities if they decide to pursue other opportunities
• How firms and their advisors can create mutually fair non-solicit agreements that reflect the 'skin in the game' contributed by each party

We also have a number of articles on retirement:

• Why the Federal government might decide that the benefits of tax-advantaged retirement accounts do not outweigh the costs, potentially putting 401(k)s and other plans in the crosshairs
• Proposed legislation would mandate that most companies with more than 10 employees provide defined-contribution retirement plans, potentially expanding the pool of employees with access to tax-advantaged accounts 
• How advisors can support younger clients by putting the challenges facing the Social Security system into context and showing them how potential changes would affect their financial plans

We wrap up with 3 final articles, all about money psychology:

• Why the traits that can help entrepreneurs succeed in business can lead to challenges elsewhere in their financial lives, and how financial advisors can help them evaluate their options
• Why 'frugality' is not just a matter of spending as little as possible, but rather living in a way that allows an individual to spend time on their most important priorities
• 31 money lessons 1 author has learned over the course of his career, from the importance of putting one's income and wealth into perspective to the benefits of living generously

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 while both the total number of RIAs and advisor headcount have seen significant gains in recent years, client assets remain concentrated among the largest firms, according to data from Cerulli Associates, with the 7% of RIAs with at least $1 billion of AUM managing 71% of total RIA assets. Which suggests that instead of trying to go head-to-head with these larger firms (and their heftier marketing budgets) in attracting clients, smaller firms might instead demonstrate how they are 'different' by offering a unique service offering tailored to their ideal target clients. 

Also in industry news this week:

• A recent study has found that advisors who gain additional credentials tend to see a boost both in their confidence and in their business metrics, with the CFP certification standing out in terms of value
• The implications for RIAs of a proposed Treasury Department rule that would subject many firms to certain anti-money-laundering regulations for the first time

From there, we have several articles on advisor marketing:

• How advisors can adjust their email distribution practices to ensure their marketing messages are delivered amidst a crackdown on spam among major email providers
• How leveraging Artificial Intelligence (AI) tools can help advisors create personalized marketing content more efficiently
• 3 potential marketing strategies for advisors that come with zero (hard dollar) cost 

We also have a number of articles on investment planning:

• How the growth of index funds (to the point that they have surpassed actively managed funds in terms of total assets) has changed the business of financial advice
• The potential benefits of customized bond ladders for clients and how they could complement direct indexing strategies
• While a recent research paper suggests that investors across the age spectrum could benefit from maintaining a 100% equity portfolio, the benefits (and potential risks) of such an approach might be overstated

We wrap up with 3 final articles, all about financial advisory business trends:

• Why robust demand among larger, often PE-backed, RIAs, combined with the challenges facing smaller, 'tweener' firms, could lead to robust M&A activity in the year ahead 
• How the United States has experienced a productivity 'boomlet' in recent months and how advisory firms could further boost their efficiency
• Industry veteran Bob Veres offers his predictions for 2024, including an increasing number of next-generation advisors breaking off to start their own firms amidst industry consolidation and a growing role for AI in advisors' tech stacks

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 study from Cerulli Associates indicates a lack of fee transparency represents a significant hurdle for many investors when considering working with a financial advisor. Which suggests that while advisors might be hesitant to publish their fees on their website before being able to meet face-to-face with prospects, doing so (and linking the fees to the value proposition they offer their ideal clients) could help certain consumers overcome their reluctance and start the process to becoming clients! 

Also in industry news this week:

• While AUM fees remain ubiquitous among fee-only advisors, recent data show that an increasing number leverage multiple fee models to meet different client needs and preferences
• While CFP Board has come out firmly in favor of the Department of Labor's proposed Retirement Security Rule, FPA has taken a more cautious approach, expressing concern about the potential compliance costs of the proposal for advisory firms

From there, we have several articles on advisor marketing:

• A 5-step process advisors can use to build relationships with Centers Of Influence (COIs) and generate more prospect leads
• Why the effective use of lead-generation services typically requires advisors to have plenty of free time to follow up with the leads they receive
• Best practices for how advisors can use webinars to generate client leads, from leveraging effective email campaigns to creating near-term follow-up opportunities

We also have a number of articles on spending:

• Why the relationship between spending and happiness is not linear, and what this phenomenon means for client spending and life satisfaction
• How the differences between being "frugal" and "independent" can call for different advisor recommendations when it seems that clients are spending less than their income and assets allow
• Why "Coast FIRE" might be an attractive strategy for clients who want more flexibility during their working years but don't want to stop work completely

We wrap up with 3 final articles, all about reading and writing:

• How a daily writing practice can bring a range of personal and business benefits, from greater clarity of thought to building a professional brand
• How experimental data suggests that taking notes by hand, rather than typing them out, could lead to more effective learning
• The challenge of reading (and finishing) books amid a growing number of distractions and potential solutions to enable greater focus 

Enjoy the 'light' reading!

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