Weekend Reading For Financial Planners (February 8–9)

CFP Board CEO Kevin Keller To Retire

(Patrick Donachie | WealthManagement)

CFP Board is one of the most important organizations in the wealth management industry in its standard-setting role for the more than 100,000 CFP certificants (which increasingly bleeds over into the financial advice industry writ large as an ever-growing percentage of financial advisors are now CFP certificants), legislative advocacy for higher standards in the industry, promotion of comprehensive financial planning advice to consumers (including advertising campaigns encouraging consumers to seek out CFP professionals when in need of financial advice), and encouraging students and career changers alike to consider a career in financial planning. Which puts significant responsibility on its CEO to lead these areas (and more) as the CFP Board advances the financial planning profession as a whole.

After serving in the role since 2007, the CFP Board announced this week that CEO Kevin Keller plans to retire and step down from his position on April 30, 2026. The organization said that its board of directors has established a search committee and will engage an executive search firm later this year to assess internal candidates, alongside conducting a national external search, for Keller's successor.

During his tenure, Keller oversaw many changes to CFP Board operations, including both physical (e.g., moving the organization's headquarters from Denver to Washington, D.C.), and structural (e.g., the establishment of a separate 501(c)(6) professional organization to promote the benefits of financial advice and planning careers) changes. In addition, during his tenure CFP Board reviewed and amended its standards, both in terms of the fiduciary standards its certificants are required to uphold as well as the organization's investigation and disciplinary processes (the latter partly in response to a 2019 Wall Street Journal article flagging that nearly 10% of the certificants included on the CFP Board website that helps consumers find a CFP professional had material public disclosures listed on the FINRA BrokerCheck site). In addition, during his tenure, the number of CFP professionals nearly doubled, with the organization making efforts (e.g., through a number of scholarships) to increase the diversity of the profession (which remains a work in progress).

Keller's tenure and incredibly successful execution of its strategic plan represented significant progress for the CFP Board and the planning profession… which means he also leaves very big shoes to fill for his successor. At the same time, while the CFP Board has arguably never been in a better position, with a record-high 10,000+ class of CFP exam takers in 2024 and making ongoing annual highs in the total number of CFP certificants, Keller's successor will still face many challenges and opportunities as the organization moves beyond its 50th anniversary, from finding additional ways to continue to expand the population of CFP professionals (amidst the expected retirements of a significant percentage of advisors in the coming years), to maintaining the quality and integrity of the standards as more insurance and brokerage firms (who do not themselves have a fiduciary obligation) continue to adopt the CFP marks, to ensuring that CFP professionals continue stand out from other sources of financial advice in the eyes of consumers as the leading marks to connote who is really a financial planning professional!

FPA CEO Patrick Mahoney Dies After Cancer Battle

(Ian Wenik | Citywire RIA)

Through its 25 years of existence, the Financial Planning Association (FPA) has supported financial advisors through Practice management, Learning, Advocacy, and Networking (it's P-L-A-N strategic pillars),and seeks to be the leading membership organization for CFP professionals. And since 2020, the organization has been run by Patrick Mahoney, who took over as the successor for prior CEO Lauren Schadle, and had previously served as an executive at S&P Global and the Institute of Electrical and Electronics Engineers.

Sadly, Mahoney passed away this week at the age of 62 after an ongoing battle with cancer. FPA said he will be replaced on an interim basis by COO Dennis Moore, while the organization searches for a permanent replacement.

Having taken over the membership association in the aftermath of its failed "OneFPA" initiative to consolidate its chapters into the national organization, Mahoney had several signature achievements during his tenure, which started with rebuilding trust between local FPA chapters and the national FPA headquarters by meeting with FPA chapter boards across the country and reinforcing that the main goal of the FPA home office is to support its members and the profession (after a long history of tension between FPA's National staff and its chapters). Further, he nurtured the new OneFPA Advisory Council, one of the few parts of the original OneFPA initiative which he choose to keep and has born fruit in bringing leaders of FPA chapters together with staff and board leadership to discuss key issues, including boosting membership and engaging current members. As a result of the Advisory Council's recommendation to identify the organization's core members, the FPA determined that the FPA's marketing and membership benefits will be oriented to making the lives of CFP practitioners in particular – the organization's formally defined 'core member' – easier and more convenient. Mahoney also leaned further into FPA's efforts in trade and national press outreach efforts, where he offered interviews to tell the FPA's story and to communicate the value of the organization – and, more generally, financial planning – to the broader public, emphasizing the efforts made by FPA chapters to drive professionalism among their ranks. And thanks to Mahoney's efforts, the FPA appears to have halted its ongoing membership decline, stabilizing at more than 17,000 current members today (which itself is a slight uptick from 2024).

Altogether, Mahoney leaves behind an FPA that is organizationally in a much better state than when he arrived – with a more stable membership base, a clearer focus on its core, and leaner staff better aligned to the FPA's strategic objectives, and a stronger relationship with its chapters. Nonetheless, while Mahoney was successful at stabilizing the organization, it will be up to his successor to build on that foundation and try to get meaningful growth underway again, as the FPA still faces challenges in boosting its membership (and the number of financial planners writ large), as well as grappling with the ongoing debate over what it means to call oneself a "financial planner" and its particular approach to Title Protection.

Advisor Industry Bands Together For Pass-Through Deduction Parity

(Leo Almazora | InvestmentNews)

The Tax Cuts and Jobs Act (TCJA) included the most substantial changes to the tax code that we have seen in over 30 years. One change that garnered significant attention from financial advisors was the new (at the time) 20% deduction for Qualified Business Income (QBI). What's unique about the QBI deduction (also known as the IRC Section 199A deduction, or the pass-through deduction) is not just the size of the deduction (as a deduction of up to 20% of certain business income is certainly appealing!) but the fact that many financial advisors themselves will be eligible for a QBI deduction, albeit subject to some "high-income" limitations that some financial advisors will need to plan for in order to avoid having their QBI deduction phased-out entirely.

Amidst debate over how sunsetting provisions in the TCJA might be extended or made permanent in the coming year (as well as other parts of the TCJA that might be amended), a broad coalition of financial advisory trade organizations representing RIAs, broker-dealers, and advisors (including CFP Board, the Investment Adviser Association, and the Financial Services Institute, among others), alongside some of the largest broker-dealer firms, have sent a letter to the House Ways and Means Committee and the Senate Finance Committee requesting that they consider not only extending the QBI deduction, but also expand it to remove the "specified service trades or business" designation that limits the deduction for financial advisors (and certain other professionals) with income over the designated thresholds. The letter argues that advisors should be treated similarly to insurance brokers, who are not subject to the phase-out limitations, given that the advisors they represent provide similar services and face financial and regulatory burdens that other small businesses face while supporting their clients.

In the end, the Section 199A deduction will be one of many issues discussed with regard to TCJA extensions that will impact financial advisors and their clients, from the possibility of restoring the deductibility of financial advisory fees to potential changes to State And Local Tax [SALT] deductibility. In the meantime, advisory firm owners (and those working with small business owner clients) still have options for managing the QBI deduction, including reviewing their business entity options and taking a strategic approach to retirement plan contributions.

Balancing Social Security, Retirement Income, And Legacy Interests To Meet Client Goals

(Jason Kephart | Morningstar)

Much of the conversation surrounding retirement income involves strategies to efficiently and sustainably generate income from a client's portfolio over the course of their remaining years. However, since most clients will also receive Social Security benefits, incorporating this additional income stream (and deciding when to claim benefits) can help an advisor craft a strategy that meets client goals both for lifetime income and legacy interests.

To demonstrate how the results of different approaches can vary, Morningstar applied various spending methods to a hypothetical client with a $1 million starting portfolio balance, a $36,000 Social Security benefit at age 67, a 3.7% fixed real withdrawal rate, and 2.3% inflation adjustments (for both Social Security benefits and portfolio withdrawals). The 'base case' chosen is a client who retires and claims Social Security benefits at age 67. Under the above assumptions, this client would have $73,000 in first-year spending, $2.19 million in lifetime spending and a median ending portfolio balance after 30 years of $1.33 million. Compared to this 'base case', an individual who retires and claims Social Security benefits when initially eligible at age 62 would be worse off on all three metrics, with total first-year spending of $63,000, lifetime spending or $1.89 million, and a median ending portfolio balance after 30 years of $1.25 million (though they might have other reasons for wanting or needing to retire earlier).

Given the potential benefits of waiting to claim Social Security, Morningstar also looked at individuals who leave the workforce but wait until age 70 to do so. The best-off retirees (among the scenarios tested) are those who can implement a "bridge" strategy by having their spending needs covered by sources outside of their portfolio (e.g., a spouse working or rental income). Such an individual would have first-year spending of $82,000, lifetime spending of $2.46 million, and a median 30-year ending portfolio balance of $1.30 million. For those who don't have such a "bridge" (and therefore have to withdraw from their portfolio to support their spending needs between ages 67 and 70), first-year spending was $77,000, lifetime spending was $2.31 million, and the median 30-year ending balance was $1.15 million. Notably, for this latter case, the client would have greater first-year and lifetime income compared to the base case of claiming Social Security at age 67 but ended up with a lower ending balance, suggesting there could be a tradeoff with such an approach for legacy interests.

In the end, while a client's decision of when to retire and when to claim Social Security benefits will depend on a variety of factors (e.g., health, life expectancy, and spending needs), advisors can offer value by showing them the tradeoffs involved in different decisions (and perhaps by implementing flexible strategies that can potentially result in greater retirement income than fixed withdrawal strategies) to help them pick the best option for their unique preferences and needs!

Using TIPS To Target Inflation-Protected Income

(Nathan Dutzmann | Round Table Investment Strategies)

When it comes to lifestyle needs in retirement, clients typically will have a combination of 'core' (e.g., housing, food) and 'adaptive' (e.g., travel) expenses. While Social Security benefits (and/or a defined-benefit pension) might cover a portion of the 'core' bucket, additional income sources are sometimes needed to cover remaining expenses in this category.

While portfolio withdrawals are an option to cover this shortfall, some clients might be concerned about having their ability to cover 'core' expenses dependent in part on market forces. For these clients, converting some of their portfolio assets into an income annuity might be an attractive way to cover the remainder of their 'core' expenses with guaranteed income. However, given that an annuity typically has limited (or no) inflation protection, an inflationary period could lead to a continued shortfall in covering 'core' expenses with guaranteed income sources.

Given this backdrop, advisors and their clients could consider using Treasury Inflation-Protected Securities (TIPS), which offer principal increases at the same rate as the Consumer Price Index (CPI, a common measure of changes in price levels) as well as an interest payment (which is a fixed percentage of the principal) that rises in turn. For instance, an advisor could create a TIPS "ladder" by buying TIPS at varying maturities in amounts desired to match the income needs of their client, thereby providing a certain level of inflation protection to meet clients' 'core' spending needs. Alternatively, an advisor could take a "duration-matching" approach (e.g., using TIPS mutual funds or ETFs with different durations to produce a portfolio designed for the client's desired inflation-protected income), which can be particularly helpful for years where there are no TIPS maturities for individual bonds. Though while these approaches can potentially offer inflation protection that a client desires, it is worth noting that the assets invested will be fully consumed during the period the strategy is used, which means that other funds (e.g., the remaining funds in the client's portfolio) would be needed to support any legacy interests.

In sum, TIPS-based strategies can be a potentially effective way for clients to generate inflation-protected income (alongside Social Security benefits, which are adjusted for inflation as well) to support their retirement spending needs (particularly their known 'core' spending). And given the technical challenges involved in implementing such a strategy (e.g., ensuring the TIPS or funds purchased match up with the timing with the client's income needs), implementing a TIPS-based approach can be a notable demonstration of the advisor's value for clients in this position!

When Safe Withdrawal Rates Collide With RMDs

(Christine Benz | Morningstar)

While there are many different strategies retirees (and their advisors) can use to generate sustainable income in retirement (from 'fixed' withdrawal systems to a more flexible 'guardrails' approach), an additional factor that must be considered is from which accounts these withdrawals will be made. Retirees have significant flexibility in the early years of retirement in this regard (i.e., strategically withdrawing funds needed for spending from taxable accounts, retirement accounts, or a combination of the two), though this flexibility is reduced once a retiree reaches the required beginning date for Required Minimum Distributions (RMDs).

Given that the percentage of an account that must be distributed as part of an RMD increases every year (e.g., 4.1% for those age 75 and 6.3% at age 85), a retired client might be concerned that these increasing withdrawal percentages could eventually deplete their portfolio. At a basic level, it's worth noting that money distributed from an RMD doesn't necessarily have to be spent (though the distribution will be treated as ordinary income for tax purposes) and instead could be reinvested in a taxable brokerage account (or potentially even in a traditional or Roth IRA if the individual is still working). For instance, if a client only needs half of the amount of their RMD to meet their spending needs they could reinvest the other half (perhaps transferring shares directly from an IRA to a taxable brokerage account to keep the funds invested in the market) and blunt the impact of the RMD on their portfolio.

Even if a client does spend the entire amount of the RMD, Benz notes that those who have reached RMD age typically can afford to have a higher starting safe withdrawal rate, as they need their portfolios to last fewer years than an individual starting withdrawals at 65 (in fact, Morningstar's current calculated starting safe withdrawal rates exceed the RMD percentage at every age). Which suggests that using RMDs as a guideline for available retirement income could actually be more conservative than other withdrawal strategies.

Ultimately, the key point is that advisors can add value for their clients not only by helping them determine their RMD obligations in a given year (potentially helping them avoid penalties for missed RMDs) but also determining the optimal way to generate the RMD (e.g., selling certain assets and distributing the cash versus transferring them to a taxable account) in order to keep the client (and their portfolio) on a sustainable retirement path!

Using A "Core And Satellite" Approach To Building An Advisor Tech Stack

(Matt Beecher | WealthManagement)

With an ever-expanding universe of available advisor technology tools, it can be tempting for firms to build a large tech stack to meet every possible business need or client situation they might encounter. Nonetheless, given the costs of doing so (both in terms of hard dollar expenses to access the software and time spent learning to use it), being mindful when creating a tech stack can ensure that it includes only the tools that are needed to effectively serve a firm's clients and that these tools 'play well' with each other.

One way to approach building a firm's tech stack is to use a "core and satellite" approach, focusing first on 'required' tools such as CRM, financial planning, and portfolio management software. The firm can then consider what 'enhancements' they might add to their tech stack based on the needs of their firm and its clients. For instance, a firm working primarily with retirees might use specialized retirement income planning software, while a firm specializing in tax planning might incorporate an advanced tax tool. In addition to determining whether a piece of software is truly needed, firms can also consider how well the different tools integrate with one another to generate efficiencies (e.g., seamless and secure data sharing between tools) rather than additional work (e.g., manually transferring data between two programs) for the firm and its team.

Ultimately, the key point is that because prospects and clients typically don't compare firms based on the size of their tech stack, focusing on the software that is needed to provide the highest level of service to clients (with the least friction possible for the firm) can help a firm balance the benefits of advisor technology with the costs involved in using it.

Maximizing A Firm's CRM System To Achieve Operational Excellence

(Kate Guillen | Simplicity Ops)

Client Relationship Management (CRM) software is a part of most firms' tech stacks (with Kitces Research on Advisor Technology finding that more than 94% of firms use this tool) and can be a powerful engine not only to store and manage information about prospects and clients, but also to serve as an operational hub integrated with many other parts of a firm's tech stack.

Nonetheless, some firms might recognize they aren't getting the full benefits out of their CRM. Which can be due to a variety of reasons, from inconsistent data entry (i.e., as missing client information can lead to inaccurate and/or incomplete reports for advisors or regulators) to taking a manual approach to entering data completing tasks (thereby missing out on efficiencies available through CRM templates and workflows).

A first step to maximizing CRM operations is to clean up and standardize data currently in the CRM (e.g., organizing categories and user-defined fields for easier client segmentation). Next, creating templates and automations (e.g., for account opening and client reviews) can both make these processes more efficient and help prevent data errors in the future. Also, checking the CRM's available integrations (as new integrations between AdvisorTech tools are introduced regularly) can allow a firm to see whether other tools in its tech stack (and the data within them) can interact seamlessly with the CRM (potentially reducing time spent on data entry and other tasks).

In sum, a CRM system is not just a convenient data repository, but rather a central hub of information and actions that can help a firm scale efficiently over time by reducing employee time spent on data entry and other common tasks and ensuring that the firm has accurate and complete information about prospects and clients (allowing it to save time and avoid issues when it comes to regulatory examinations!).

The 'Ultimate' Advisor Tech Stack

(Joe Moss | Conneqtor Musings)

Financial advisors have myriad options when it comes to technology, both in the (dozens of) categories of AdvisorTech tools they use and the (often dozens of) options within each category. Which could lead to many hours spent poring over research and user reviews of tech tools to find the appropriate categories and the tools within them (not to mention the time spent demoing and selecting from the smaller tool of prospective tools that are identified!).

With this in mind, advisor technology consultant Moss provides his thoughts on the 'best' tools within a wide range of categories to give advisors a shortcut when considering their options (though, as he notes, the 'best' tool for a given firm is likely to depend on several variables, from cost to features needed to serve their client base). To start, he likes Advyzon as an all-in-one solution covering several key categories, including CRM, portfolio management, fee billing, and data gathering. For financial planning (and retirement planning) he went away from some of the most common tools and chose Libretto for its detailed net worth calculations, among other features. For investment data and analytics (one of the most crowded categories on the Kitces AdvisorTech Map), he selected Kwanti for having high-value features for advisors without too many (expensive) bells and whistles that they might use less. For compliance and communications archiving, he picked Greenboard for its strong user interface and artificial intelligence-powered features. Additional selections included Holistiplan (tax planning), Move Health (health care and Medicare planning), Sora Finance (liability planning), and Advisor Armor (cybersecurity), among others.

In the end, while this list represents one individual's (well-informed) opinion, it can help inspire advisors not only to compare different AdvisorTech tools, but also to consider which categories they might investigate in the first place (and which they might not require, at least at this point). Which can ultimately help advisors get the greatest possible value out of the tech stack that they choose (and minimize heartache along the way)!

Should Employees Be Wary Of "Unlimited" PTO Policies?

(Callum Borchers | The Wall Street Journal)

While everyone likes to take a vacation, some workers feel constrained by the number of Paid Time Off (PTO) days they receive from their company each year (particularly if they have to use these days when they are sick or have to care for loved ones). With this in mind, a relatively small, but increasing, number of companies (currently 7%, up from 1% in 2014) have instituted seemingly employee-friendly "unlimited PTO" policies.

However, while employees at these companies might theoretically be able to take "unlimited" PTO (perhaps much more than their counterparts at companies that offer a defined number of PTO days), the reality tends to suggest more modest results. According to one survey, employees at companies that offer unlimited PTO take an average of 16 days off per year, while those at other companies take 14 (perhaps a smaller increase than might be expected). One potential reason for this is that some employees might assume there are 'unwritten' rules surrounding how much PTO is appropriate for them to take. This can be particularly true for newer and/or younger employees, who might feel the need to show their dedication to the company in order to win early promotions (or avoid an early termination).

Whether a company offers unlimited PTO or a set number of days, its culture often plays an important role in determining how many days employees take (and how they feel about taking them). For instance, a company culture that emphasizes non-specific 'hustle' might see employees take fewer days off (even if a rejuvenating vacation might help them avoid burnout?), whereas a company that gives employees clear performance benchmarks to meet might see more employees taking time off (as they might feel less 'guilty' about doing so if they've hit their targets). In addition, company leaders and management can set the tone for the company (perhaps giving working-level employees 'permission' to use their PTO) by taking time off themselves.

Ultimately, the key point is that while companies might see unlimited PTO policies as a generous perk for their employees, this policy can sometimes backfire and actually add more stress to employees. Which suggests that advisory firms considering their PTO policy might first consider whether it matches up with its company culture and perhaps adjust it accordingly (while advisors considering job offers might try to investigate whether employees at a given firm actually use their available PTO!).

How To Turn 15 PTO Days Into 51 Vacation Days In 2025

(Brittany Anas | Forbes)

Workers take many different approaches towards using their PTO, from spreading it out throughout the year (perhaps creating several three-day weekends) or concentrating it at certain times (e.g., taking a two-week vacation). Either way, given that most employers offer a set number of PTO days per year, creating a PTO strategy can help an individual make the most of the days they do have.

One common strategy is to connect PTO days to company holidays to create longer breaks. For instance, taking a PTO day on the Friday before Presidents' Day would create a four-day vacation at the cost of only one PTO day. Alternatively, taking PTO days for the rest of the week after the holiday could offer a nine-day vacation at a 'price' of only four PTO days. Similarly, taking off the period between Christmas and New Year's Day can create an extended break with fewer PTO days taken. Altogether, If PTO days are paired with holidays and weekends throughout the year, a worker could end up with more than 50 vacation days even if they only have 15 PTO days.

Nevertheless, such a strategy can come with potential downsides. To start, because Federal holidays are a common time to travel, those taking their vacations on weekends surrounding them might find that travel costs are more expensive, and attractions are more crowded. In addition, employees on teams might need to balance their PTO requests with those of their co-workers to ensure that the firm is sufficiently staffed (which suggests that an individual might request the highest-impact days off first and leave flexibility for later in the year).

In the end, no two workers are likely to have the same philosophies when it comes to using their PTO. Nonetheless, for those looking to maximize their vacation time (whether a long weekend trip or an extended vacation), keeping the holiday calendar (and weekends) in mind can help them get the most bang for their PTO buck.

The Exact Hour You Hit Peak Vacation Happiness

(Jen Rose Smith | The Wall Street Journal)

When it comes to vacations, it would be logical to think that longer trips would be more enjoyable than shorter ones (as laying on the beach sounds much more attractive than being back at the office). Nevertheless, some research suggests that there can sometimes be 'too much of a good thing' (i.e., the sixth day on the beach isn't necessarily as enjoyable as the first) and offers potential strategies to get the most out of (longer) vacations.

According to a 2019 study of vacationers in the Dominican Republic, respondents' average happiness rose from the moment they left home and peaked around hour 43 of their trip before declining. This is potentially due to the concept of "dishabituation", or the perspective refresh an individual gets from a change of pace (respondents in the study frequently said the best parts of their trip were their first view of the ocean or fruity cocktail), as well as the economic concept of "diminishing marginal utility", whereby one gets less enjoyment out of each additional unit consumed (e.g., the fourth piece of pizza isn't quite as good as the first). To help attenuate these tendencies, one option is to take several smaller trips (that each activate the sense of dishabituation) rather than a single longer trip. Or, if a longer trip is in the cards, taking on different activities each day (e.g., one day at the beach followed by a trip into town) can help maintain feelings of novelty over the course of an extended period.

In sum, while going on a long vacation and staying in one place (avoiding additional plane flights and other travel headaches) might be attractive, travelers can maximize the positive feelings they get from their trip by mixing things up and trying something new each day!

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We hope you enjoyed the reading! Please leave a comment below to share your thoughts, or make a suggestion of any articles you think we should highlight in a future column!

In the meantime, if you're interested in more news and information regarding advisor technology, we'd highly recommend checking out Craig Iskowitz's "Wealth Management Today" blog.