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 the Massachusetts Supreme Judicial Court ruled that the state's fiduciary rule for broker-dealers can stand, potentially opening the door for other states to impose similar standards that exceed the requirements of the Securities and Exchange Commission's Regulation Best Interest rule.

Also in industry news this week:

• A legal challenge to FINRA's operations as a self-regulatory organization has the potential to upend the current regulatory system for broker-dealers and their registered representatives  
• A recent study indicates that while many consumers appear confident handling their finances on a 'DIY' basis during their careers, the percentage seeking professional financial advice increases as they approach retirement

From there, we have several articles on retirement planning:

• Why some individuals believe they need to save more money than they really do in order to have a sustainable retirement and how advisors can support them
• A recent study suggests that average inflation-adjusted spending among retirees decreases by 3% annually, a sharper decline than previous estimates
• The value in deciding how much is 'enough', and how advisors can support their clients in doing so 

We also have a number of articles on practice management:

• Best practices for giving praise and constructive criticism to motivate employees and help them grow
• How developing and communicating a clear strategic plan can not only set the long-term direction for a firm, but also help employees better understand the value of their work
• Why advisor happiness leads to better client service, and how firms (and clients) can assess whether their advisors are happy

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

• Why those in the upper class are taking a more understated approach to displaying their wealth compared to previous generations 
• The services and skills that can help advisors move 'upmarket' and attract wealthier clients 
• How "social debt" can serve as a psychological and financial challenge for wealthy individuals and what they can do to avoid this burden

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 CFP Board survey indicates that consumers do not expect AI tools to replace human financial advisors, but rather supplement advisors' work. Further, 87% of respondents said they would trust advice from human advisors, more than any other source of advice surveyed, and well above the 37% who said they trust generative AI tools.

Also in industry news this week:

• The SEC settled its first charges related to its new marketing rule with a firm that advertised 2,700% annual returns
• A survey suggests that older Americans prefer the term "longevity" to "aging", perhaps informing the way advisors discuss related issues with their clients 

From there, we have several articles on retirement planning:

• How advisors can help clients explore what they really want out of retirement rather than relying on 'scripts' for what retirement looks like
• 9 traits that determine whether an individual will be happy in retirement, and how advisors can help clients achieve them
• Why retirement wealth extends beyond dollars and cents to time, relationships, health, and skills

We also have a number of articles on investment planning:

• A recent study found that investors lagged the performance of the funds in which they invested by 1.7% per year over the past decade, suggesting a potential role for advisors in helping them overcome this "behavior gap" 
• While there are many potential ways to get rich in the markets, they can vary significantly by their degree of difficulty, likelihood of success, and time required to be successful
• How to approach designing a portfolio built to last for hundreds or thousands of years

We wrap up with 3 final articles, all about remote and hybrid work:

• How opinions of remote and hybrid work differ based on geography
• How some recent research has poured cold water on the idea that remote workers are more productive, at least in certain professions 
• Why a hybrid work approach where employees come into the office on specified days could boost productivity and employee satisfaction

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent study has found that consumers are increasingly likely to spread their portfolios across a range of asset managers, and that this trend is particularly pronounced amongst more affluent clients (e.g., millionaires), suggesting that advisors who believe they hold "everything" their clients have may actually have less than they realize. At the same time, though, the report also found that asset managers that are the primary source of retirement advice tend to hold a larger percentage of a client's portfolio, suggesting that offering financial planning services tailored to the needs of a firm's clients really is helping as a source of organic growth (as clients bring more assets under the advisor's management), and more generally positions smaller firms (that can provide more targeted advice) compete against large asset managers that are struggling to scale advice as they are also vying for client assets!

Also in industry news this week:

• FINRA has enacted a more thorough expungement process in an effort to ensure that all sides have a chance to be heard when brokers seek to have customer disputes removed from their record
• CFP Board is encouraging its certificants to commit to at least 20 hours of pro bono service each year and a variety of programs are available to help advisors meet this goal

From there, we have several articles on spending:

• Why individuals might consider their net worth, as well as their income, when it comes to deciding how much to spend each year
• The range of options available for couples deciding how to organize their finances
• How setting a spending 'cap' can help couples reduce money conflicts and enjoy more guilt-free spending

We also have a number of articles on practice management:

• How offering authentic, frequent, and powerful recognition can improve employee engagement and retention
• How managers can frame questions to get more honest responses from their employees
• Why middle managers can play a crucial role as connectors within an organization

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

• Why the negative effects of a lack of sleep on both health and productivity might outweigh the additional time gained by going to bed later and waking up earlier
• The importance of rest, including the benefits of taking breaks throughout the day
• How to stay in sync with one's circadian rhythms and the benefits of doing so

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 Massachusetts Secretary of the Commonwealth has launched an investigation into how investment firms are using artificial intelligence-enabled technologies, echoing concerns expressed by the SEC that these tools could be used to put the firms' interests ahead of their clients if the methods of the developers who create the tools and the 'training' the AI goes through is not scrutinized sufficiently.

Also in industry news this week:

• A bill that would allow funds in 529 plans to be used for postsecondary credentials, including the CFP certification, is gaining significant bipartisan support in Congress
• A recent survey identified key topics on which financial advisors and investors have mismatched views, from expected investment returns to how they view risk

From there, we have several articles on investment planning:

• Why ESG investing appears to be facing skepticism from an increasing number of financial professionals
• How advisors can best support clients interested in Biblically Responsible Investing
• How fractional share investing has evolved form a tool for individuals with low account balances to a key enabler of direct indexing strategies that are valuable to a wider range of clients

We also have a number of articles on advisor marketing:

• How taking an intentional approach can help advisors win more referrals from Centers Of Influence (COIs)
• How 'taking a walk in the shoes' of key COIs can help advisors better explain their value proposition to these partners and generate more referrals
• A 3-step approach that advisors can use to build relationships with COIs and get exposure to their clients

We wrap up with 3 final articles, all about professional growth:

• Why making tough decisions now, rather than putting them off, can ultimately benefit a firm's bottom line, as well as its clients and staff
• 5 pieces of time-tested advice that can help advisors improve their productivity and client service
• Why some advisors are choosing to turn away from serving high-net-worth clients

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that credit ratings agency Fitch on Tuesday downgraded its assessment of the U.S. government's creditworthiness from an AAA rating to AA+. While the downgrade has made headlines and might be startling to advisory clients (particularly those with significant portfolio allocations to U.S. Treasury securities), some observers suggest that the factors cited by Fitch for the downgrade (from the growing national debt to the recent debt ceiling standoff in Congress) do not necessarily portend a default, at least in the near term.  

Also in industry news this week:

• RIA M&A activity fell in the second quarter compared to the same period last year amid rising financing costs, though continued private equity interest in the RIA space could help buoy deal volume going forward
• According to a recent survey, RIAs appear to be taking a defensive approach toward the SEC's new marketing rule, with many firms changing their marketing materials to be in compliance with its provisions and few firms expanding their use of client testimonials and other opportunities offered by the rule 

From there, we have several articles on advisory firm hiring practices:

• A recent study explores what new advisors are looking for from their firms and how training and mentorship programs could play an important role in boosting advisor retention rates
• Why crafting an applicant-centric job posting and casting a wide net across hiring platforms can help firms boost the number of qualified candidates they attract when looking to add talent 
• Tactics firms can use to attract a more diverse pool of job applicants and the potential business benefits of doing so 

We also have a number of articles on retirement planning:

• Why common advisor concerns about Monte Carlo analysis are more about the software tools they use rather than the technique itself
• How advisors might be underestimating the longevity of their clients, particularly those who are healthy and have already reached retirement age
• A research study suggests that "psychological ownership" and loss aversion could be driving many individuals to claim Social Security benefits early despite the potential financial downsides of doing so

We wrap up with 3 final articles, all about workplace culture:

• How individuals tend to underestimate how much their colleagues, friends, and partners want their feedback 
• Why understanding and leveraging employee work style preferences can create more effective teams
• How being intentional and flexible when designing workspaces can promote productivity and wellbeing

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 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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