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 RIAs appear to be building more comprehensive and more integrated tech stacks, and are benefiting from greater operational efficiencies, according to the latest Schwab RIA Benchmarking Study, with larger firms seeing gains in clients and AUM per professional and a reduction in annual hours spent per client for operations and administration in the past 3 years.

Also in industry news this week:

• The SEC released a proposal that would require firms to take steps to eliminate or neutralize conflicts of interest when using predictive data analytics tools with clients
• A recent study found that financial advisors remain the top source of financial advice for consumers, with social media coming in well behind

From there, we have several articles on practice management:

• 4 steps advisory firms can take to train their staff effectively
• 7 key standard operating procedures advisory firms can consider implementing to promote efficiency and consistent service
• Why letting team members struggle with new assignments can ultimately give them more confidence and allow firm owners to delegate more tasks

We also have a number of articles on retirement planning:

• An analysis shows that despite the decline in access to defined benefit pensions, the typical retiree today receives more monthly income than one who retired 50 years ago
• Why older individuals tend to have a harder time being approved for mortgages despite having better credit scores and more assets
• Why some experts are calling for policymakers to shore up the Social Security trust fund indefinitely while others think a shorter duration would be acceptable

We wrap up with 3 final articles, all about facing challenges:

• 10 harsh lessons one business owner learned on his entrepreneurial path and how they apply to financial advisors
• Why it might be better to knock off small tasks when they arise rather than letting them build up over time
• 5 steps advisors can take to spur themselves to action when facing a daunting challenge

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 Charles Schwab's latest annual RIA Benchmarking Study shows that while average firm assets under management fell in 2022, due largely to weak market performance, organic growth remained strong, mitigating a portion of the market effects on client portfolios. Further, the study identifies the traits of "top performing" firms, which, during the past 5 years, saw nearly triple the client and net organic asset growth compared to other firms.

Also in industry news this week:

• How an SEC committee proposal to allow third-party examinations of the growing number of RIAs harkens back to a similar proposal that failed to advance in Congress more than a decade ago
• A study shows that a majority of advisory firm clients surveyed chose the first advisor with whom they met, though younger clients appear to be doing more research before choosing an advisor

From there, we have several articles on wellbeing:

• Why tracking employee wellbeing metrics could be good for both firms and their employees
• How vacations can improve an individual's physical, mental, and spiritual health, in addition to their work performance
• Key wellness trends that firms can consider implementing with their employees to promote their wellbeing and potentially improve retention

We also have a number of articles on spending:

• Why a previous skeptic of luxury cars decided that buying a $65,000 Porsche was the right decision for her
• Why it is important for clients to consider the 'hidden' costs of buying a vacation home before jumping into a purchase
• How advisors can help clients strike a balance between living for today and delaying gratification

We wrap up with 3 final articles, all about career development:

• Why neither advisory firms nor their advisors can get everything they want out of an employment relationship
• The important, but less obvious, factors an advisor can consider when thinking about changing firms
• What knowledge workers can do to avoid having their jobs taken over by artificial intelligence tools

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 the new social media app Threads, designed to compete with Twitter, has surpassed 100 million users in its first week alone, its potential utility for advisors remains unclear and has raised compliance concerns for advisors whose social media archiving tools do not yet cover the new app.

Also in industry news this week:

• The SEC this week finalized a series of rules designed to discourage future runs on money-market funds, potentially reducing their liquidity risk
• A recent study suggests that advisor marketing messages that address prospective clients' emotional concerns, in addition to their technical questions, could be particularly effective

From there, we have several articles on advisor marketing:

• Tips for how advisors can more effectively share news articles on social media, from choosing the 'right' articles to offering their own commentary
• Why taking a proactive and compliance-centered approach to third-party reviews could help advisors influence how they are portrayed online and potentially boost the flow of prospective clients
• How firms and advisors can elevate their social media presence, from refreshing their profiles to creating a quarterly content calendar

We also have a number of articles on retirement planning:

• How 'Fat FIRE' differs from traditional conceptions of early retirement and what it means for advisors supporting clients pursuing this path
• A road map those contemplating or entering retirement (as well as their advisors) can use to ensure they are financially prepared for the transition from the working world
• A proposed approach to retirement income planning that is designed to offer more nuance than traditional Monte Carlo analysis

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

• Why the introduction of AI tools might not lead to massive unemployment and could actually boost the number of available jobs
• How the Southern United States has seen a massive inflow of residents and companies in the past several years
• How investing and financial advice have evolved during the past century and what it means for advisors going forward

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 recent survey data indicate that advisors are more satisfied and productive when they have more time to spend with their clients and when those clients fit within their ideal client profile, in terms of needs, specialties, or engagement levels. Which suggests that advisor wellbeing could potentially be improved not only by automating or outsourcing administrative tasks, but also by adjusting their client rosters to better match their ideal client type.

Also in industry news this week:

• A recent survey indicates that a strong majority of financial advisory clients have maintained their trust in their advisors despite the investment market setbacks experienced last year
• A report from the SEC shows that a majority RIAs have mandatory arbitration clauses in their client agreements, a practice that has come under fire from some consumer groups

From there, we have several articles on RIA mergers and acquisitions:

• A study has found that while RIA M&A activity has been hot during the past 3 years, many firms have walked away from deals, often due to misaligned valuation expectations between buyers and sellers
• What RIAs contemplating an acquisition can do to make sure they get their first deal ‘right’
• The options for firms considering whether and how to adjust fees for clients acquired through an acquisition

We also have a number of articles on tax planning:

• How IRMAA surcharges, while a nuisance, tend to represent a relatively small percentage of a retiree’s income
• The IRS is warning wealthy taxpayers about scams involving CRATs and monetized installment sales
• How advisors can help clients take advantage of the 0% long-term capital gains tax bracket

We wrap up with 3 final articles, all about overcoming mental obstacles:

• The psychological phenomena that help explain why individuals tend to think that the world is worse off today than it was in the past
• Why self-judgment can contribute to burnout and how to overcome this tendency
• Why it can be easy to fall into a funk when pursuing a goal and how to get out of it

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 NAPFA has announced that it will no longer exclude advisors who receive up to $2,500 in annual trailing commissions from previous product sales, if they agree to donate that money to a non-profit organization and are otherwise fully dedicated to fee-only principles with their clients going forward. The change has led to strong pushback from some of the organization’s own members, who argue that allowing any level of commissions is a step away from NAPFA’s “fee-ONLY” roots, and will dilute the organization’s brand as being the home of fee-only advisors when they’re not purely fee-only anymore… while others suggest that the policy simply recognizes the practical challenges that previously commission-based advisors face when making the transition to fee-only models (including that sometimes it’s virtually impossible to get insurance companies to stop paying trails on old policies!).

Also in industry news this week:

• Concerned about the (insufficient) frequency of its examinations of RIAs, an SEC committee has recommended that the regulator allow third parties to conduct these examinations and to request Congressional authorization to charge investment advisers under its purview a ‘user fee’ that would provide steady funding to the SEC’s examinations division
• A recent report has found that 72% of new advisors drop out of the industry, creating an incentive for firms to invest in their recruiting, onboarding, and training practices to be able to grow their headcount amidst a wave of expected advisor retirements in the coming years

From there, we have several articles on cash flow and spending:

• How individuals can balance the desire to spend on small luxuries today with the need to save for the future
• How advisors can help younger clients get on a sustainable spending and savings path
• While research has found that, broadly, greater income can lead to increased happiness, a variety of mediators, from an individual’s baseline happiness level to the amount of free time they have, can affect this relationship

We also have a number of articles on retirement planning:

• Why advisors and their clients entering or in retirement might consider income annuities as a replacement for the bond portion of the client’s portfolio
• How advisors can support workplace retirement plan sponsors in deciding whether to include annuity options and, if so, which to choose
• While a proposed hybrid annuity/long-term care insurance product could help consumers and insurance companies mitigate their risk, it has yet to get traction

We wrap up with 3 final articles, all about the relationship between hard work and success:

• While those who have reached the top of their fields might appear to perform effortlessly, getting to that point likely took thousands of hours of practice
• Why finding meaning in one’s career could be superior to seeking wealth for its own sake
• How luck (both good and bad) shaped the course of 1 advisor’s career path

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 amid a flurry of SEC-proposed rules for investment advisers, the Investment Adviser Association this week called on the regulator to assess whether the compliance burden these regulations would put on advisers outweighs the potential benefits and, if adopted, to consider rolling them out on a staggered basis to give advisers sufficient time to implement them.

Also in industry news this week:

• A recent study found that financial advisors get significantly more social media engagement from posts on LinkedIn and Facebook compared to Twitter and highlighted the importance of posting original content for engagement
• Why RIAs have struggled to find a solid footing in the IPO market

From there, we have several articles on behavioral finance:

• While advisors cannot provide clients with absolute certainty about their financial lives, they have the opportunity to add value by helping them manage risk and build resilience
• How advisors can support clients worried about the "crisis du jour"
• How helping clients connect with their future selves can spur them to action

We also have a number of articles on practice management:

• How advisory firm owners can save time and energy by empowering employees to lead themselves
• How firms can run more effective team meetings and offsites
• Why recruiting 'superstars' often requires different tactics compared to a firm’s typical hiring process

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

• A review of research demonstrating why exercise might be the key to a healthier, and longer, life
• How to structure a workout when there are only 15 minutes available
• Why investments in one’s health can be just as important as financial investments when it comes to having a longer and happier retirement

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 issued a risk alert highlighting areas of increased focus regarding its new marketing rule for upcoming examinations, including whether there is clear disclosure of whether the person giving a testimonial or endorsement is a client or investor, if the promoter has been paid, and if there are material conflicts of interest. Among other highlighted areas of interest, the regulator also flagged whether certain “ineligible persons” have been compensated for testimonials or endorsements and advisors’ use of third-party ratings in advertisements.

Also in industry news this week:

• A recent survey suggests that while individuals who work with financial advisors find them to be valuable, those who have not worked with an advisor before do not necessarily understand the value an advisor can provide
• The SEC is considering a new rule regarding advisers’ use of Artificial Intelligence tools, while the Department of Labor said it is planning to release the latest proposed update to its ‘fiduciary rule’ in August

From there, we have several articles on investments:

• How advisors can add value for clients by evaluating the potential risks and benefits of investing in private credit funds
• Why higher interest rates could change the calculus for advisors for allocating client assets to cash-like instruments
• How performance data suggest that lower-cost bond funds tend to perform better and are less volatile than their pricier counterparts

We also have a number of articles on advisor fees:

• While charging based on Assets Under Management (AUM) remains the most popular fee model, many advisors are looking to retainers and other fee models to diversify their revenue stream and reach more prospective clients
• How advisors can help their clients save on taxes by strategically taking fees from client accounts in a tax-efficient manner
• Why improved advisor service levels and the broader inflationary environment could make now a good time for firms to consider raising their fees

We wrap up with 3 final articles, all about taking breaks:

• Best practices for how often to take breaks during the workday and what to do during them to promote focus and creativity
• How advisors can structure their daily calendars to build in breaks and enhance their productivity
• How managers can play an important role in creating an office culture where breaks during the day are not only accepted, but encouraged

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 House has passed legislation that would expand the definition of who qualifies as an accredited investor eligible to invest in certain private investments to include those who pass an exam designed by the SEC, and those with certain licenses or educational backgrounds, including financial advisors. And given the opaque nature of many private investments, financial advisors could play an important role in helping their clients assess whether these opportunities make sense for their portfolio and broader financial plan.

Also in industry news this week:

• A study has found that during the past several years, investors are not just bypassing mutual funds for ETFs, but are increasingly investing in individual equities, shaped by a new wave of younger market participants
• Congressional leaders are planning to introduce legislation that would fix a variety of drafting errors in “SECURE Act 2.0”, including sections regarding RMDs and IRA contribution limits

From there, we have several articles on cash flow and wealth:

• Why being ‘rich’ and being ‘wealthy’ are not necessarily the same thing and how advisors can help clients identify the differences
• How a client might have hundreds, and not just 4, “money scripts” that drive their financial decision-making
• How exploring a client’s social-emotional relationship with money can help explain their spending decisions and other financial choices

We also have a number of articles on retirement:

• Why many retirees are choosing “semi-retirements”, continuing to work part-time well after traditional retirement age
• Why the biggest challenge retirees face could be replacing the social networks they built during their careers
• 3 techniques advisors can use to help reluctant retirees spend more

We wrap up with 3 final articles, all about the path to career success:

• Why it is important to recognize that even the most successful individuals typically have to make sacrifices both along the way and in their current positions
• How to identify and mitigate the “microstresses” that build up throughout the work week
• How cultivating a sense of moxie can help individuals address “impostor syndrome”

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 found that advisory forms working with a younger client base tend to have relatively stronger growth in assets under management and revenue over time. In addition, the researchers found that referrals from centers of influence were one of the strongest drivers of new client growth, with client referrals playing an important role as well.

Also in industry news this week:

• How Goldman Sachs’ RIA custodial platform is leveraging the resources of its parent company as it seeks to build momentum amidst a highly competitive environment among custodians
• How NASAA has changed the substance and/or scoring of the Series 63, 65, and 66 exams

From there, we have several articles on college planning:

• How the college financial aid landscape is changing this year, from a redesigned FAFSA form to new planning opportunities for grandparents
• How the newly-updated College Scorecard tool can help advisors and their clients better understand the costs and potential benefits of attending certain colleges
• How advisors can help clients decipher college financial aid letters, which can vary significantly across different schools

We also have a number of articles on investments:

• Why financial planning clients might not be clamoring for the personalization that direct indexing offers
• Why investing in today’s largest companies and holding the shares for an extended period might underperform a more dynamic index
• A study has found that advisors often invest client assets more conservatively than what their client’s risk tolerance might allow

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

• How a series of mental exercises can help individuals build resilience and overcome challenges they face
• Why taking ownership of the inevitable pain that comes in life can lead to greater personal resilience
• How adopting a “gift-giving” mindset can help an individual live their best life both today and into 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 while banks have been able to attract a younger and more diverse set of financial advisors compared to the rest of the industry, thanks in part to their built-in referral stream, a relative lack of independence and dated technology could lead some of their advisors to explore options with independent RIAs.

Also in industry news this week:

• How consumer concerns about the stability of the banking industry could present independent advisors with an opportunity to add value by managing client cash
• Why an advisor’s fiduciary duty can sometimes come into conflict with the best insurance options for their clients

From there, we have several articles on marketing:

• While many firms have grown in the past several years thanks to market performance and M&A, a recent study shows that the average RIA had negative organic growth during the past 5 years
• How firm owners can develop a “business development culture” throughout their firms
• The differences between client referrals and word-of-mouth marketing and how advisors can use each to attract prospective clients

We also have a number of articles on retirement:

• How retirees (and their advisors) can use “mastermind” groups to learn from and build a community with their peers
• A survey of what people tend to care about less as they age, from trying to impress others to prioritizing their career over other interests
• How the choice of where to live in retirement can impact a retiree’s longevity

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

• How the most effective companies encourage innovative ideas among their employees
• Why better sleep might be the ultimate ‘hack’ for achieving better productivity and creativity
• Why persistence can be the key to turning a good idea into a great one

Enjoy the ‘light’ reading!

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