Archives Of Weekend Reading For Financial Planners

Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with a fascinating discussion of a younger planner who specializes in working with retirees decided to launch a series of specialized blogs to grow his AUM... and in only his second year, is already on pace to bring in more than $40M of new assets to his advisory practice (and his clients are older retired clients, not "young" people!).

From there, we have several investment related articles this week, including a look at the growing actively-managed ETF space, the ongoing rise of alternative investments, the opportunity to use Master Limited Partnerships (MLPs) to invest in the infrastructure around the oil and gas boom, a detailed look from Morningstar at different types of MLP structures and their yields and tax treatment, whether advisors should steer clients away from bonds in the current environment, and whether it makes sense to keep a mortgage or not in today's low-mortgage-rate (but also low-yield) environment.

There is also a pair of practice management articles: the first looks at some of the key "hot button" issues cropping up in the space of mergers and acquisitions (and succession planning) for financial advisors; and the second gives a good overview of the SEC's "testimonial" rule for RIAs and how it relates back to social media.

We wrap up with three interesting articles to give you something to think about: the first is a creative look at different ways that we can characterize advisory businesses, from geographically-based businesses to commodity-based solutions to community-based offerings (and the benefits and disadvantages of each); the second provides a good reminder that while regular communication and "touch points" are key to client retention, too much communication can be bad thing too, especially if what you're sending out in your communication isn't truly meaningful and substantive and relevant for clients; and the last is a fascinating discussion of a recent presentation by Blogger and Twitter co-founder Ev Williams about what it really takes for an internet-based business to be successful, noting that ultimately what really has the most success is not trying to invent something entirely new, but simply looking at what humans already do and the ways we connect and simply making the experience easier and more convenient. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with the latest on the ongoing CFP Board woes, as the organization has now reinstated its "fee-only" search function on its website after resetting the compensation disclosure for all fee-only advisors last week, but in the process has raised the question of whether it was fair to effectively grant "amnesty" to a number of advisors at broker-dealers after publicly sanctioning former chair Alan Goldfarb for a similar offense last year. Also included is the latest analysis from Cerulli, suggesting that the number of advisors will continue to fall in the coming years, attritioning by nearly 10% by 2017 due primarily to the fact that the industry is simply not attracting enough next generation advisors to replace those who are retiring.

From there, we have several financial planning technical articles this week, including a discussion of the ABLE Act that may create 529-style tax-free investment accounts for those who have disabilities (possibly replacing the need for Special Needs Trusts at some point in the future?), a look at the current environment for long-term care insurance, a discussion of some of the challenges of making claims on long-term disability insurance policies (especially for high-income clients), and an overview of the newly launching "SHOP" health insurance exchanges for small businesses and why virtually every small business should participate (especially those that currently don't offer health insurance at all). There are also two retirement planning articles: the first looks at how Deferred Income Annuities (DIAs) might be even better than immediate annuities as a part of a retiree's portfolio, and the second examines how holding one year of cash reserves to mitigate transaction costs can slightly improve retirement income sustainability (though a large cash reserve bucket actually reduces retirement success).

There is also a trio of practice management articles: the first looks at how too often, the best thing an advisor can do in their business is nothing, though too often there is a temptation and desire to "do something" even if it's a bad idea; the second takes a fascinating look at the challenges of succession planning not from the perspective of the founder looking to exit but the successor who has taken over; and the third looks at how to focus an advisory practice on a client's "Return On Life" (ROL) and in the process provides one of the best descriptions out there of the 5 core value propositions that financial planners bring to the table for their clients.

We wrap up with a nice article on personal productivity that makes the simple point that in the end you should focus on what you can control, which means spending less time setting long-term goals and tracking your accomplishments and more time focusing on the efforts you must take to follow your path to success; not only does focusing on the effort instead of the results better focus your attention on what you can control, but ultimately it can help to sustain motivation in the midst of a difficult environment for the business. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with an interesting article about a new research study on the online algorithm-based advice startups, suggesting that ultimately the role for many of them may turn out to be more like a "second opinion" platform than a primary advisor.

From there, we have a couple of practice management articles, including one about how to hire and train your client services team (hint: don't use your junior financial planners!), and the importance of going through an annual process to update your firm's strategy and why it matters.

We also have a number of advisor technology-related articles this week, including reviews of financial planning software Omyen, the latest cloud-based version of Junxure CRM, and online form and document signature platforms Laser App and DocuSign. There are also articles on how to create a digital/virtual business card that clients can access by text message, some ideas on how to integrate video into your marketing (and what, exactly, you should talk about in your videos!), and a review of some tools advisors can use to speed up their writing and note-taking (from voice-recognition software to mobile dictation services).

We wrap up with three interesting final articles: the first is from Philip Palaveev, suggesting that perhaps the difficulty of larger advisory firms financing successors is less about the actual affordability and financing of the practice and more about training future owners to be ready and willing to take the entrepreneurial risks involved; the second is from financial planner Ronald Sier about the importance of niches, and the idea that perhaps the best niches are not about what you do or who you work with, but the kinds of feelings you try to evoke in your clients; and the last is from practice management consultant Abby Salameh, who notes that while the productivity benefits of various technology-enabled communication (from social media to email to text messages) is great, that advisors still need to be certain to just pick up the "old-fashioned" telephone and call their clients from time to time as well! Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with several articles related to the fiduciary standard (as the Institute for the Fiduciary Standard has dubbed this "Fiduciary September"), including the announcement from the Department of Labor that it is pushing back (but definitely not abandoning) its new fiduciary rule proposed, criticism from Bob Veres about how the brokerage industry seems to be simultaneously insisting that brokers already act in their small clients' interests even while claiming that those clients can't be served under the standard, and a look from Dan Moisand in the Journal of Financial Planning at how ineffective disclosure alone has been in trying to protect consumers (which, ultimately, should be the role of regulators).

From there, we have several financial planning technical articles this week, including an estate planning checklist after the loss of a client's loved one, how it's going to be harder in 2014 to buy a home due to changes rolling out from the Federal Housing Finance Agency, a look at the LTC insurance marketplace that tries to debunk some common myths, how many variable annuities over the past decade were mispriced (and therefore why clients probably shouldn't be accepting the company buyback offers), how risk management and lower volatility portfolios can result in alpha and higher returns even if they don't participate in the maximum upside, and a great discussion from Texas Tech professor Michael Finke on Social Security retirement claiming strategies for clients.

We wrap up with three interesting final articles: the first is a look at the landscape of advisor designations, suggesting that given the growing complexity of the marketplace and the need for advisors to specialize, there will - and should be - more designations, but it's crucial to have appropriate standards and accreditation to separate the wheat from the chaff; the second is a series of "dangerous ideas" in the investment world, issues that clients and advisors may not be thinking about - often due to behavioral biases - but should; and the last a good reminder that ultimately as financial planners we are all human beings and we, too, aren't perfect and can make mistakes... and suggesting that it's ok to make yourself vulnerable and share that with clients sometimes, too, as it can ultimately make you more human and easy to relate to. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with a discussion from Mark Hurley about whether it will soon become a lot more expensive for advisors to acquire clients, whether through popular custodian referral programs or other channels.

From there, we have several financial planning technical articles this week, including a look at whether the shortfalls in the Social Security disability fund may prompt Social Security reform sooner rather than later, whether income-oriented portfolios increase or reduce the safe withdrawal rate, another way to look at why it's beneficial to delay Social Security benefits, a discussion of "DING" and "NING" trusts used to avoid state income tax liabilities for clients in high-tax-rate states, a look at how the new cost basis reporting rules are shaking out after the first several years, and a roundtable discussion from the Journal of Financial Planning about the new health insurance exchanges and how they'll work.

We wrap up with three interesting final articles: the first is a blog from Angie Herbers about whether the tendency for advisors to form 3-person teams may be contributing to young employee turnover (as the saying goes, "three's a crowd" and it may apply in advisor firms, too!); the second suggests that the real problem for many overspending clients is that they're spending too much money having people do things for them; the third is an interesting interview with Vanguard founder Jack Bogle (who is as spirited as ever in criticizing the financial services industry and suggesting reforms); and the last is a good reminder that notwithstanding all the great advice planners give their clients, many could stand to take their own advice a little more often as well, or ever consider hiring their own planner to get a helpful nudge! Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with a new lawsuit against the CFP Board, brought by an advisor who was sanctioned for improper use of the "fee only" term and is now trying to take the CFP Board to court to clear the record. There are also two notable articles about changes in the space for new advisor business models and online advice startups, as LPL pulls the plug on NestWise, but a number of new online investment platforms are gearing up to debut later this year and in early 2014.

From there, we have several articles about social media and technology, including a great profile of three advisors who are using social media successfully to drive new clients to their firms, a look at how large broker-dealer firms are starting to open up to using social media and challenge the RIA early adopters, and an intriguing focus group study that found despite Gen X and Gen Y use of technology that they still show a strong preference to have a real human being from their financial services firm that they can interact with and get personalized advice from.

There are also a few technical articles this week, including a discussion of the IRS announcement to allow same-sex married couples to file joint tax returns (regardless of whether their current state of residence recognizes the marriage), some proposed regulations from the IRS on how the small business health insurance premium tax credit will work beginning in 2014, and a look at the new "navigators" being funded under the Affordable Care Act to help people navigate the health insurance exchanges.

We wrap up with three interesting final articles: the first is from Bob Veres, who suggests that perhaps advisors need to do more to help clients avoid dwelling on the potential worst-case scenarios that leave a tremendous opportunity cost on the table; the second looks at how despite the popularity of the concept, the "wisdom of crowds" is not really as robust as it's made out to be, and in fact can be highly susceptible to herding when people know what others are thinking and doing (e.g., as is true in the case of markets!); and the last is from the blog of Rick Ferri, and explores the idea of a "stewardship" standard, the potential next step proposed by Don Trone beyond the fiduciary standard. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with some turmoil between NAPFA and the CFP Board, which have split on the definition of "fee only" and created the awkward scenario where some "fee only" planners under NAPFA actually don't qualify as "fee only" CFP certificants.

From there, we have several practice management articles this week, including some ideas from Bob Veres about how to fix the industry's regulatory woes, some tasks to target for outsourcing in your firm, and a discussion of whether we need to reframe "succession planning" as "continuity planning" instead (to recognize that many advisors want a more continuous and ongoing role in the transition). We also have a few articles related to technology topics, including a look at how to make sure your client data is safe when you're using your laptop and mobile devices on (public) WiFi networks, and a nice summary of Susan Weiner's "Virtual Book Tour" with a long list of great articles on blogging for financial advisors (great tips whether you're thinking about getting started, or trying to get better).

There are also a few technical articles this week, including on from Ed Slott about the latest proposals for changes to retirement accounts under President Obama's budget (some beneficial for clients, some not so much), and another article about the rising specialty of helping clients through health care and health insurance issues in retirement.

We wrap up with three interesting final articles: the first is from the Research Puzzler blog, suggesting a fresh way to look at the active vs passive debate is to distinguish between "maximzers" and "satisficers" instead; the second about the concept of "negative selling" and reverse psychology, where sometimes clients are more engaged by telling them what they can't have than what they can; and an intriguing discussion by financial planning blogger Ronald Sier about the fact that in the end, most clients don't have financial goals, they have real world goals that have financial ramifications, and we as advisors need to adjust our conversations accordingly. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with an announcement by the CFP Board at their recent Program Directors conference that they intend to offer a "massive online open course" (a "MOOC") to help draw new potential professionals into the field of financial planning (and ultimately to pursue their CFP designation). Also in the news this week was the latest data from Schwab Advisor Services on advisor mergers and acquisitions, showing a notable slowdown in activity in the first half of 2013, and a look at the new investment data solution YCharts that is aiming to become the Bloomberg terminal for advisors (at a more reasonable price point, and with Morningstar as one of its venture capital financiers)!

We have a few technical articles this week, including a discussion about Social Security benefits estimates and the fact that they don't take into account the "Windfall Elimination Provision" for those who spent a period of years working in a job that wasn't covered by Social Security, a look at a recent IRS ruling on Self-Cancelling Installment Notes (SCINs) that may have a chilling effect on their use as an estate planning technique, and a Journal of Financial Planning article that provides a good overview of some of the research on asset location and determining after-tax asset allocation decisions.

From there, we have a few practice management articles this week, including two compliance-related articles: one on the importance of business continuity and disaster recovery plans, and the other on why the custody rule matters for financial advisors and how to avoid or manage it (hint: just using a third-party custodian is not enough). There's also an article from Bob Veres envisioning how financial planning firms may shift in the future, with a less asset-centric focus and more attention to the human capital aspects of planning for clients.

We wrap up with three interesting final articles: the first is from marketing guru Seth Godin, about the idea of "if there are people who are an accident just waiting to happen... what's the opposite?" suggesting the answer is to be "formidable" and what it takes to live up to the label; the second is from the blog of Stephen Wershing, and makes the excellent point that just because advisory firms are growing doesn't mean they're good at marketing, when in truth they may just be good at selling; and the last from practice management consultant Angie Herbers, suggesting that in the end we may be attaching far too much stigma to the decision of advisors to "downsize" their firms and that ultimately success is about how the business owner measures it, not what everyone else thinks. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with a big announcement by the CFP Board this week of some "clarifications" to its compensation disclosure rules, including the removal of the "salary" compensation category and an affirmation that advisors cannot be classified as fee-only if they or their firm merely could receive a commission, even if no client has ever paid one. Other industry news and commentary this week includes a look from Ron Rhoades about whether the Garrett Planning Network is a model of how most fiduciary advisors may be compensated in the future, the latest response from the 401(k) industry regarding Yale professor Ian Ayers' threat to expose high-cost employer 401(k) plans to the public, and a discussion of some big changes coming to the DFA investment process.

From there, we have a number of practice management articles, including some tips about how to be more quotable as an advisor when talking to the media, a look at how client advisory boards can be executed effectively, some best practices in vetting and screening potential financial planning candidates for your latest job opening, and how to delegate effectively (not just advice that you should delegate, but what you need to do to actually get it done!). We also have a pair of technical articles, including one providing an in-depth review of the File-and-Suspend and Restricted Application claiming strategies for Social Security benefits (and when they work best), and another that discusses planning opportunities for same-sex couples after the Supreme Court decision on the Defense of Marriage Act.

We wrap up with three interesting final articles: the first is from Jason Zweig of the Wall Street Journal about how financial services products that are less liquid or have exit penalties may actually be a positive "precommitment" strategy to help clients stay the course, an insider's "confession" of the problems in the institutional investing world (with striking parallels to the behaviors of many affluent clients), and a "farewell" message from Investment News technology reporter Davis Janowski who is leaving the publication after six years but shares some interesting perspective on the world of technology for advisors as he moves on. Also included this week is a glimpse at technology consultant Bill Winterberg's new video edition of his weekly "Bits and Bytes" covering the latest news and developments in advisor technology. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with an interesting profile of online financial planning startup LearnVest, which just recently secured a fresh $16.5M round of venture capital funding to continue growing and scaling its business, along with announcing a prospective partnership with American Express and suggesting more partnerships with some large employers are in the works. Also in the news this week is a look at the recent 401(k) industry bombshell as Yale professor Ian Ayres sent controversial notices to 6,000 firms, threatening some of them that he will expose and highlight their above-average 401(k) plan costs (implying that the company could be breaching its fiduciary duties to plan participants).

From there, we have a number of practice management articles, including a look at Mark Hurley's recent white paper and its perspective on why most advisor M&A deals fall through, a profile of a financial planning firm that uses mind mapping tools live in client meetings as part of its "wow" experience, a review of the online tool "Mention" (an alternative to Google Alerts) to monitor your online reputation, and some perspective on how to get more value out of your advisory firm website (and even better understand what you should realistically be trying to accomplish with it in the first place).

We also have several technical articles, including one on how to route college tuition payments through a 529 plan to save on state income taxes (with a few caveats), another on the complications that arise when trying to allocate assets from an estate between the bypass and marital trusts after death (especially when there has been a material change in value between the date of death and the date property is distributed to trusts), and a third looking at floating rate bank loans and whether they're appropriate for client portfolios given the looming risk of a rising interest rate environment and the impact it could have on traditional bonds.

We wrap up with three interesting final articles: the first is from Texas Tech professor Michael Finke, looking at what factors are most predictive of which clients will "freak out" in the face of market declines (and some ideas of what to do about it); the second is a discussion from financial planner Dave Grant about what was most effective for him as he made a transition to going out on his own as a solo advisor; and the last is a discussion from Foundation Room Finance about how to find the balance as a new advisor between developing your technical skills and going out to build a client base, with some perspective on what it takes to build and refine a business model by applying the principles of Eric Ries' "The Lean Startup", that is equally relevant for both new and experience advisors and their firms. Enjoy the reading!

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