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 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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Enjoy the current installment of "weekend reading for financial planners" - this week's collection of articles are drawn entirely from the blogs of financial advisors and the companies and consultants who serve them, and starts off with an interesting profile of a financial planner from India who is building a practice comprised almost entirely of virtual, online clients who can purchase increasing expensive and sophisticated tiers of service and advice, effectively allowing the planner to both build to the highest priced financial planning offering over time and have the opportunity to get paid while cultivating those relationships!

From there, we have a number of additional articles about building business online and through social media, including one article that emphasizes the importance of having a good online website (which is now even more important than having a good high-end glossy brochure), some guidance on what Search Engine Optimization (SEO) means for financial advisors and tips to improve it for your website, and a discussion of building networks on LinkedIn and whether it's a good idea to accept any/every LinkedIn invitation that comes your way.

We also have several practice management articles, including one on the perils of having a book of aging clients (though the tipping point is not merely when clients retire, but instead when they start reaching their late 60s and early 70s), another on marketing and how to differentiate yourself by providing case studies of how you work with your target clients, and a third on why networking is so unsuccessful for most advisors (hint: don't just search for prospective clients, search for prospective advocates who can open the door to many more clients down the road). There are also a few more technical articles, including one about how to address life insurance for your diabetic clients, and another with a good checklist of key areas to consider for any same-sex married couple clients since the Supreme Court DOMA decision.

We wrap up with three final articles: the first is from "Investment Committee Doctor" Tom Brakke about how our efforts to better convey information graphically and visually could lead us to make new behavior mistakes in our investment decision-making process; the second looks at what financial advisors can learn from the TV show Mad Men about specialization of roles within a firm and separating business development and relationship management from financial planning creativity and expertise; and the last looks at a recent survey that finds what matters most to clients is not your fees, your advice, your service, your knowledge, or your experience, but your interpersonal skills, the ability to use the right side of your brain to tell stories and create connections, and the importance of starting out by talking not about what you do, but why you do it in a way that clients can make an emotional connection. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's issue is focused on articles about practice management, career development, and technology, and kicks off with a discussion from industry commentator Bob Veres about advisor fee models, particularly the AUM fee model, and how many are looking at changing and evolving beyond an AUM-centric business focus.

From there, we have a number of practice management articles, including a discussion of whether advisors are increasingly "stealing" clients from others in order to grow, how many succession planning deals are actually poorly structured and priced, and the importance of having a career track in your firm to attract and retain talent (and potential future successors!).

There are also a number of technology-related articles, including a review of new digital content marketing services Vestorly and AdvisorDeck, a review of financial planning software eMoney Advisor and how it can also serve as a personal financial management tool for clients, the importance of adopting rebalancing software, the viability of using cloud-based office productivity software like Microsoft Office 365 or Google Apps, and how to balance the benefits of marketing automation with the importance of personalized service.

We wrap up with three final articles: the first is from Angie Herbers and looks at how relinquishing some control to employees is crucial for staff (and ultimately the firm itself) to grow and develop; the second is a case study discussion of the XCelsior study group as an example of the importance and value of being involved with a study group; and the last looks at how clients in the future will have different needs and expectations of their advisor than the baby boomers of the past, and that becoming a "Gen-Savvy Financial Advisor" in order to succeed may require not just an evolution for advisors but an entire revolution from the way things are currently done. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's issue starts off with a summary of some of the final comment letters submitted regarding the SEC's request for information for a cost-benefit analysis about a uniform fiduciary standard. Why industry organizations like SIFMA and NAIFA indicated that a fiduciary standard would significantly increase compliance costs and force advisors to stop serving middle market clients, the results of a Financial Planning Coalition study found that fiduciary advisors generate significantly more revenue - suggesting that revenue growth could more than offset any higher costs - and that there are no statistically significant differences between the number of middle-market clients that fiduciary vs non-fiduciary advisors currently serve.

From there, we have a wide array of technical articles, including: a discussion of the ongoing Commission on Long-Term Care established by the American Taxpayer Relief Act to propose structural solutions to the country's long-term care challenges; a great overview of the coming new health insurance rules and how to start planning for them; a discussion of the importance of disability insurance for both clients and advisors themselves; a look from Ed Slott at how the Net Unrealized Appreciation strategy may be a little less appealing at today's long-term capital gains tax rates; and an intriguing analysis by Moshe Milevsky that in some circumstances equity-indexed annuities with guaranteed living benefit riders might actually produce slightly more income than a simple single-premium immediate annuity.

There are also a number of investment-related articles this week, from a review of recent applied research by Harold Evensky in the Journal of Financial Planning, to a discussion by Bob Veres of five new investment approaches being implemented by advisors that appear to have value, to a look at whether it's time to acknowledge that the efficient frontier of mean-variance optimization is more like an efficient "range" because ultimately neither the inputs to the model nor the preferences of investors are really as precise as a strict interpretation of Modern Portfolio Theory implies. There's also a good review of the recent Active Share research and why "hyperactively managed" funds may be best outperformers of all actively managed funds.

We wrap up with an article from industry veteran and luminary Richard Wagner, who suggests that financial planning could become the most important profession of the 21st century, as we human beings collectively become increasingly cognizant of the powerful role that money exerts in our lives, and the unique contribution that financial planners can bring to the table in helping clients to navigate those forces effectively. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's issue kicks off with three interesting practice management articles: the first suggests it may be time for advisors to re-evaluate the value of serving smaller clients, who PriceMetrix finds are 108 times more likely to leave their advisor than become a large client while with the same advisor; the second looks at the tendency for advisors (even/especially fiduciary RIAs) to selectively discuss/disclose their fees but not fully explain all underlying fees; and the third examines the emerging trend towards financial advisory firms engaging in mergers and acquisitions to grow and reach scale.

From there, we have a wide array of technical articles, including: a look at fascinating new research that suggests that immediate annuities may be far less effective than previously posited due to how they are impacted by unexpected client health events; new estate planning trusts that focus more on the income tax opportunities at death (e.g., step-up in basis) rather than avoiding estate taxes; the implications of this week's announcement to delay the employer mandate for the Affordable Care Act; important things to know about the new state health insurance exchanges (which are still scheduled to open up in October!); how to plan for Social Security dependent benefits and why it's not always a good idea to delay until you're age 70; and the latest from PIMCO's Bill Gross about how the rising turmoil in bonds may be troubling but it's not time to abandon ship.

We wrap up with three final articles that look a bit more inward: the first is from the Farnam Street blog and provides tips about how to quickly build rapport with someone when meeting for the first time (e.g., a prospective client!); the second is an introspective look from the Wall Street Journal's Jason Zweig about the challenges of saving investors from themselves and why it's a worthwhile effort to pursue anyway; and the last delves into some of the latest research about the connections between money and happiness and how to utilize more money to ensure it really brings more happiness. Enjoy the reading!

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Enjoy the current installment of "weekend reading for financial planners" - this week's issue is drawn entirely from blogs and bloggers I read who deliver content that has relevant for financial planners. We start off with a relatively new blog, which shares a great guide in how to write an attractive "bio" page as an advisor; in a world where we are often focusing on storytelling to communicate planning strategies and solutions, it's time to better apply the same techniques in communicating about ourselves, too!

From there, we have a few technical articles, including a great discussion of what is (and isn't!) really guaranteed when clients say they're considering a variable annuity with a "5.5% guaranteed growth rate," and a look at whether clients should consider skipping employer-based health insurance as the new health insurance exchanges open up later this year.

Beyond that, there are several articles related to technology and social media this week, including whether the Google Apps platform is a viable solution for a growing advisory firm, a due diligence checklist of questions to ask when evaluating a potential CRM system, some "advanced" tips to getting more productive value out of Twitter, and a look at how advisors might use Pinterest to help grow their business. There are also a few practice management related issues, including a great look at some tips and opportunities in trying to self-publish a book (it's a lot easier than you think and there are lots of resources to help!), some things to consider if you're considering a podcast, and some guidance from Angie Herbers about how to fend off and resolve employee problems without resorting to just firing and replacing them.

>We wrap up with three final articles that look a bit more inward: the first is from Ronald Sier, and looks at whether it is appropriate and ethical to try to influence your clients' decisions (his conclusion: as long as it's done in their interests, yes it's appropriate, and in fact you should be trying to do it!); the second is from Tim Maurer, and his new "Financial Common Ground" initiative that is trying to establish what he calls the "unifying principles of personal finance" that hopefully all experts can agree on, regardless of their business model; and the last is a review of the recent Robert Cialdini book "Yes! 50 Scientifically Proven Ways To Be Persuasive" that includes some fantastic ideas on influence and persuasion that could be used to tweak an advisory firm's communication techniques to improve their business results. Enjoy the reading!

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