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 a Fidelity benchmarking study revealed that both small and large RIAs saw positive organic growth in 2022, helping to mitigate AUM declines resulting from weak market performance. The report also flagged that profit margins for RIAs remained relatively steady over the past several years (despite strong market performance over the period), with the trend of firms offering increasingly comprehensive service while also discounting fees cited as a potential cause. 

Also in industry news this week:

• How the use of model investment portfolios can potentially save advisors time and boost client trust
• Why a recent IRS Private Letter Ruling could facilitate the emergence of zero-commission variable universal life policies (that RIAs can actually get paid a fee to advise on)

From there, we have several articles on housing:

• How aspiring homebuyers have a range of options, from intra-family loans to "house hacking", to reduce the costs of buying a home amid elevated prices and interest rates 
• Why a focus on resale value has led many home improvement projects to reflect popular, rather than personal, preferences
• How one potential homebuyer crunched the numbers to decide that homeownership was not the right investment for her

We also have a number of articles on practice management:

• Why fine-tuning their leadership skills can help owners of mid-sized firms take their business to the next level
• How rapidly growing firms can fall into cash flow traps, even if they are profitable
• A recent study identified common traits of advisors with high-growth practices, including being purposeful about organizational design and being willing to delegate tasks

We wrap up with 3 final articles, all about lending in the elevated interest rate environment:

• Why the spread between 10-year Treasury yields and 30-year mortgage rates has expanded in recent years, leading to higher interest costs for homebuyers
• How advisors can help clients evaluate whether, and which, private credit funds might be appropriate for their portfolio 
• How tighter bank lending standards have contributed to a flood of private credit loans, which offer opportunities and potential perils for borrowers and investors alike

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 this week released its long-awaited "retirement security rule", its latest effort to curb conflicts of interest around retirement savings recommendations. Among other measures, the proposal would amend the current 5-part test that determines fiduciary status for retirement accounts by defining as a fiduciary act a one-time recommendation to roll funds from a company retirement plan to an Individual Retirement Account (IRA), strengthen advice standards for independent insurance professionals, apply to insurance products that are not securities, and would cover advice to plan sponsors regarding the menu of investment options to include in a company's retirement plan… though, like the similar 'fiduciary rule' proposed during the Obama administration, this latest regulatory effort is likely to face significant pushback from financial product manufacturers and distributors.

Also in industry news this week:

• A recent study indicates that the RIA model has seen significant growth in the number of firms and advisors during the past decade, and these firms are expected to control 1/3 of industry AUM by 2027
• Despite market headwinds leading to a contraction in advisory firm AUM in 2022, firms continued to produce strong profit margins thanks in part to organic growth

From there, we have several articles on investment planning:

• Why certain private equity investments might not have the diversification benefits that many advisors and clients might expect
• Why the current yield on TIPS could make them an attractive part of a retirement income strategy for clients
• While small caps have experienced higher returns than their larger counterparts during the past century, recent research calls into question whether this factor will persist

We also have a number of articles on advisor marketing:

• How content marketing can help advisors attract clients, even if it means giving away some of their 'secrets' 
• Why presenting prospects with proposed planning recommendations ultimately could reduce the chances that they become clients
• How one advisor has used an extra-methodical sales process to convert prospects into clients who will be a good fit for his planning style and philosophy

We wrap up with 3 final articles, all about potential uses of Artificial Intelligence (AI) for advisors:

• Why advisors are more likely to work in tandem with AI tools, rather than as competitors
• How advisors can produce better 'prompts' and get the most out of ChatGPT and other large language models
• Why recommendation engines could be the next big technological advance in investment management

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 shift in financial advice from pure investment management to comprehensive financial planning continues, with more individuals becoming CFP professionals than CFAs in the past few years as consumers increasing the diversity of their financial goals. 

Also in industry news this week:

• A survey indicates that while financial advisors remain the most trusted source of financial advice, they might increasingly encounter client questions and ideas that originated from social media
• Following the transition of advisors and clients from TD Ameritrade and amid competition from competing RIA custodians, Charles Schwab executives this week highlighted tech investments the custodian has made to improve the advisor experience on the platform

From there, we have several articles on tax planning:

• Why business-owner clients could come under increasing scrutiny from a beefed-up IRS
• The unique tax issues facing freelancers and how advisors can both help them maintain proper records and take advantage of tax-related opportunities
• How advisors can help wealthy clients with certain alternative investments avoid an IRS audit

We also have a number of articles on the value of advice:

• How advisors can use an iterative process to develop high-value services for their clients 
• The unique needs of clients in the "sandwich generation" and how advisors can serve them without burning out themselves
• How financial advisors are similar to general practitioners in their ability to make clients feel cared for

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

• Profiles of individuals who retired with $5 million, who have often leveraged this wealth for flexibility rather than luxury
• Recently published data from the Federal Reserve shows that the median net worth of Americans across the range of ages and wealth levels has increased significantly since 2019
• Why clients expecting to receive large inheritances from their Baby Boomer parents or grandparents might receive less than they expect and how advisors can support them

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 from Fidelity Institutional highlights the growing popularity of the RIA model and the success advisors have had after going independent. The study found that 1 in 6 advisors have moved firms in the past 5 years, with the majority opting for the independent channel. Notably, this decision has provided both qualitative and quantitative benefits for these advisors, as 85% said they now have more control over their future and 80% saw their assets under management subsequently grow, with a median increase of 42%. 

Also in industry news this week:

• The latest update on the status of the Department of Labor's proposed regulation related to fiduciary advice on retirement accounts and why the agency is referring to it as a "retirement security rule" rather than a "fiduciary rule"
• A report suggests that RIA M&A surged in the 3rd quarter, as large acquirers resumed their brisk pace of purchases 

From there, we have several articles on employee benefits:

• Why high-deductible health plans with paired HSAs could be the most cost-effective and tax-efficient health insurance option for many clients 
• How financial advisors can help clients better understand their employer-sponsored healthcare options and make the best decision for their needs 
• How advisors can potentially save clients thousands of dollars by reviewing their elections for disability insurance, workplace retirement plans, and other benefits during the annual open enrollment period

We also have a number of articles on advisor marketing:

• How to follow up with a prospect who 'ghosts' an advisor after the initial discovery meeting
• Questions that advisors can ask prospects before and during discovery meetings to reduce the chances that the prospect will fall out of contact
• A 2-part discovery meeting 'close' that can encourage prospects to take the next step to becoming a client 

We wrap up with three final articles, all about technology and security:

• While the increasing use of facial recognition technology could increase security and reduce wait times in a variety of areas, it also comes with potential privacy concerns
• How the shift from passwords to passkeys could make logging into accounts more secure and convenient
• Why encouraging consumers to focus on getting the 'big' things right, rather than trying to address every potential threat, could be a valuable practice for both cybersecurity and financial advice professionals

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 a new study from Herbers & Company that provides insight into the financial planning services that consumers demand the most, and which services financial advisory firms offer the most often. The study also identified factors that separated firms experiencing the greatest organic growth from others, which include offering a comprehensive suite of services, having a higher 'close' rate with prospects, and, perhaps counterintuitively, a lack of satisfaction with their client experience.  

Also in industry news this week:

• A study from the FINRA Foundation has found that objectively knowledgeable investors tend to pay less in investment expenses, while those who perceive that they have expertise tend to pay more
• A new report shows how pro bono financial planning can benefit not only financial advisors and their pro bono clients, but also advisory firms as well

From there, we have several articles on college planning:

• How the FAFSA form and its timing have changed for this year and how advisors can support clients going through the financial aid process
• How the lesser-known CSS Profile plays an important role in determining financial aid for many families, particularly those with students applying to private colleges 
• How the Private College 529 Plan allows families saving for college to 'lock in' today's tuition costs at a wide range of private colleges

We also have a number of articles on practice management:

• How building a 'family' environment can allow financial advisory firms to promote employee wellbeing and retention
• What firms can do during the candidate selection and onboarding processes to promote the mental health of new employees
• How taking a step back to articulate a vision, and then allowing employees to work towards that vision using their unique skills, can allow a firm and its staff to thrive

We wrap up with 3 final articles, all about research and happiness:

• How teams of academics are working to uncover faulty research practices, which has resulted in the retractions of papers in a variety of fields that received significant media attention 
• A new study looks at whether previous research regarding what makes individuals happy was sufficiently rigorous 
• A thought experiment that can help advisors and their clients manage the tradeoff between saving and spending

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 found that clients across several countries who work with a CFP professional have better outcomes on a range of measures compared to those working with other advisors or no advisor at all, suggesting that the potential benefits of gaining CFP certification can accrue not only to the advisor themselves, but also to their clients.

Also in industry news this week:

• A new advisor benchmarking study indicates that high-growth firms are excelling in 3 areas: client acquisition, "relationship alpha", and strategic scale
• A recent survey indicates that while advisors increasingly are leveraging home office investment models to save time and scale more efficiently, they often customize them to meet their clients' unique needs

From there, we have several articles on retirement planning:

• Why "unretiring" does not necessarily have to mean going back to work full-time or in one's former industry
• The motivations for individuals who have reached 'traditional' retirement age to keep working and how advisors can support clients who are considering this decision 
• How volunteering offers a range of mental and physical benefits to retirees and where they can find opportunities in their community

We also have a number of articles on client communication:

• Best practices for advisors in handling tricky client communication scenarios
• How advisors can add value to clients by helping them overcome "choice overload"
• The benefits of proactively informing clients about changes to an advisor's business and how advisors can structure and deliver these messages

We wrap up with 3 final articles, all about defining wealth:

• How defining wealth in terms of what an individual "can do" rather than as an arbitrary number can help clients better understand the "why" of their financial decisions
• How wealth can be thought of as one's ability to control their time
• How thinkers over the centuries have defined "enough" and what their conclusions mean for individuals today 

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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 custodial platform Altruist announced that it is offering its portfolio accounting software for free to advisors who custody with the firm, offering the opportunity to advisory firms to reduce the costs of their tech stacks and perhaps presaging competition among custodians to offer more software capabilities for their advisory firm clients!

Also in industry news this week:

• After experiencing a downturn over the past few quarters, RIA M&A activity ticked higher in the 3rd quarter amid continued interest from sellers and increasing costs for internal succession
• A recent study shows that housing-related costs are more likely than healthcare spending to cause unexpected spending shocks for retirees

From there, we have several articles on investment planning:

• How expense ratios for index funds can vary, even for an issuer's funds tracking the same index
• While ETF fees have tended to fall over time, this fee compression appears to be slowing as investors show interest in actively managed funds and some issuers raise their funds' expense ratios
• How investors in actively managed mutual funds are sensitive to higher fees and the factors that increase this sensitivity

We also have a number of articles on advisor marketing:

• Best practices for advisors using webinars to market to prospective clients
• How to create an effective email newsletter, from identifying the target audience to developing a unique voice
• Why structure and discipline are crucial elements for creating a successful advisor podcast

We wrap up with 3 final articles, all about how to work more efficiently:

• How advisors can use 4 different types of leverage to boost their incomes
• How calculating the "Return On Hassle" can provide clarity into the full costs and returns of a particular investment or decision 
• How both "macro" and "micro" focus can contribute to productive, fulfilling work 

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 Investment Adviser Association has petitioned the SEC to ask the regulator to change how it defines a small adviser from one with less than $25 million under management to a firm with 100 or fewer employees. The group argued that this change would help more small firms, which tend not to have the same staffing and resources compared to their larger counterparts, as the SEC contemplates a growing number of new and amended rules.

Also in industry news this week:

• A survey suggests that wealthy individuals across all generations are interested in engaging with advisors on social media, with YouTube being the top platform chosen by respondents
• Amid an avalanche of claims for the pandemic-era Employee Retention Credit, the IRS is halting the processing of new claims until 2024 and plans to closely scrutinize those that have already been made 

From there, we have several articles on financial choices:

• How advisors can help clients see that there usually are more than 2 options when it comes to making financial decisions
• While clients might be frustrated when their advisor says, "It depends," advisors can add significant value by helping them make the best decision today while working with them to make adjustments over time if circumstances change
• Why having "enough" financial independence might be a better goal than a myopic focus on being able to retire early

We also have a number of articles on marketing to affluent clients:

• How offering a "second-opinion service" can help advisors generate more referrals from clients and centers of influence
• How advisors can help clients plan for the upcoming sunset of the lower gift and estate tax exemptions under the Tax Cuts and Jobs Act
• Why giving prospects room to talk, rather than trying to convince them of the merits of an advisor's strategies, could be a more effective way to convert them into clients

We wrap up with 3 final articles, all about setting and adjusting goals:

• Why, when it comes to career planning, it can be more effective to focus on what one wants to be known for rather than the titles or positions they want to attain
• Why setting flexible goals often can be more effective than fixed or "SMART" goals
• How a "chuck-it list" can be a useful companion to a "bucket list" when it comes to setting goals

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 indicates financial advisors are the most trusted source of financial advice for consumers across generations, and are particularly trusted among wealthier individuals. Further, the survey results suggest that advisors who offer comprehensive services tailored to the needs of their target clients are likely to be more successful both retaining their current clients and in attracting clients who might be dissatisfied with their current advisor and their service offering.

Also in industry news this week:

• The SEC agreed to a series of settlements with 9 RIAs resulting from charges of improper use of hypothetical returns in advertising under the regulator's marketing rule
• How several CEOs of large RIAs and AdvisorTech companies have found that receiving funding from private equity firms and taking the responsibility for the high growth expectations that come with those dollars can potentially cost them their jobs, or at least turn their leadership positions into jobs they no longer want

From there, we have several articles on retirement planning:

• How advisors can use "retirement mentorship" programs to help clients nearing retirement feel more confident making the transition
• While many clients look forward to the freedom retirement provides, those leaving the workplace can potentially lose certain things as well, from their sense of identity to structure in their daily lives
• The range of paths available to those who have achieved financial independence that can provide purpose and fulfillment

We also have a number of articles on practice management:

• Why setting clear expectations and demonstrating a culture of professionalism are crucial for firms looking to make a successful hire
• What job candidates are looking for in the current tight advisor labor market and how firms can woo their top prospects effectively
• How firm owners can avoid potential pitfalls when hiring and training next-generation advisors

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

• While it might be tempting to lament previous decisions that were (or weren't made), the likelihood that these choices would have turned out exactly as one might imagine is low
• How advisors can help their clients make the most of the inevitable "plot twists" that arise in life
• Strategies advisors can use to overcome the common reluctance to ask for help

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 this week issued a risk alert outlining how it selects firms to examine, the areas it focuses on during exams, and how it chooses which firm documents to request, details that could ultimately help firms be better prepared for their next exam and make it a shorter, less painful process!

Also in industry news this week:

• Changes to CFP Board’s procedural rules went into effect September 1 and are intended to make the disciplinary process more efficient for respondents as well as CFP Board staff, and to expand the CFP Board’s ability to pursue more complaints against CFP professionals
• A NASAA model rule follows in the footsteps of FINRA and CFP Board in extending the amount of time advisors can leave their jobs without having to retake qualification exams

From there, we have several articles on advisor marketing:

• 3 behavioral science principles advisors can put into practice to attract more clients
• How advisors can build understanding and trust with their clients to foster long-term relationships
• How advisors can tactfully address the behavioral and emotional challenges prospects and clients face when it comes to money

We also have a number of articles on investment planning:

• A survey indicates that many advisors currently using alternative investments with clients are looking to increase these allocations to further boost portfolio diversification
• While clients might be tempted to move assets from equities to cash amidst the higher interest rate environment, doing so could limit their progress toward long-term financial goals
• How the new interest rate environment presents an opportunity for advisors to reevaluate their clients’ fixed income allocations

We wrap up with three final articles, all about economic trends:

• How suburbs have experienced a renaissance that started well before the pandemic
• Why poverty persists in the United States and what might be done to fix the problem
• How a pandemic-era tax break has led to a booming business of affiliate marketers targeting small businesses

Enjoy the ‘light’ reading!

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