Search results for: "FP+Careers"

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that, in response to Russia’s invasion of Ukraine, the United States and the European Union are preparing sanctions on the Russian central bank, which could cause a severe financial shock to the Russian economy… and raises concerns about how the impact of sanctions could ripple back to US investors. But while the war in Ukraine has created a major geopolitical shock (and a humanitarian crisis), historical data show that similar events in the past have not necessarily caused a major decline in the U.S. stock market (at least, not for any sustained period of time).

Also in industry news this week:

• Despite ‘SECURE Act 2.0’ stalling in Congress, another potential bill has emerged that would enhance consumer protections and options in workplace retirement plans
• While the Biden administration will not halt the upcoming overhaul to the Department of Labor Fiduciary Rule, a pending proposal likely would increase the number of financial professionals who must provide a fiduciary standard of care when providing investment recommendations for 401(k), individual retirement accounts, and other plans

From there, we have several articles on financial advisory industry trends:

• A recent study shows that the vast majority of advisors who outsource their investment management are happy with their decision
• Why the uptake of model portfolios has stalled out among advisors who are still predominantly focused on making portfolio construction their own value proposition instead
• How firms are increasingly trying to expand the number of services they offer to attract clients in a world where more and more advisors are converging on the assets-under-management model

We also have a number of articles on cash flow and budgeting:

• How a new database that ranks colleges based on their return on investment can help advisors and their clients determine which college is likely to pay off financially for a given student
• How saving on big items (e.g., cars and houses) is important, but spending prudently on the ‘small’ stuff still matters, or it can add up and undermine the big savings
• The wide range of ways couples can organize their finances, from a shared household account and separate guilt-free side accounts for spending, to simply splitting every couple’s expenses down the middle to pay from their own assets

We wrap up with three final articles, all about when and how to say ‘no’:

• Why the decision on whether to say ‘yes’ or ‘no’ to opportunities can depend on what stage of life an individual is experiencing (and how problems emerge when we start out saying ‘yes’ to everything and fail to realize when it’s time to start saying ‘no’ more often)
• How saying ‘no’ to some prospective clients can actually increase a firm’s efficiency and profitability
• How using a ‘positive no’ can make saying 'no' a better experience for both the individual saying 'no' and the person who made the offer

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, according to population and moving data with increased relocations during the pandemic’s era of remote work, the states that lost the most population in 2021 were those with the highest personal income tax rates (and likewise, the states that gained the most population were those with the lowest tax rates), which, while not definitively proving that tax rates were a primary factor for remote workers taking advantage of the freedom to live and work anywhere, does show that Southern and Western states (which make up the majority of lower-tax states) continue to hold allure for workers seeking a lower cost of living or better economic opportunity.

Also in industry news this week:

• The CFP Board issued new guidance and case studies focusing on satisfying their “fiduciary-at-all-times” duty of care, navigating the seven-step financial planning process as a solo advisor, and managing conflicts of interest in compliance with the Code of Ethics and Standards of Conduct that has been in force since June 2020
• A new research study from TIAA concluded that high school coursework on personal finance has no impact on a student’s likelihood to eventually save for retirement or own a home (though previous research has suggested that financial literacy education can at least improve young adulthood credit and debt behavior)

From there, we have several articles on client communication:

• An extensive new study from FPA concluding that advisors may overrate their own communication skills, as compared to how clients view them, suggesting the need for a more systematic approach to gathering both quantitative and qualitative client data to understand clients’ personal and financial priorities in more depth
• Why, when clients of financial advisors fail to act on recommendations, it may not be a sign of their being unwilling to act so much as not (yet) being ready to act – and how pushing the client to take the “right” action can actually have the opposite effect (and cause the client to even further delay a needed course correction)
• How the nature of financial advice is expanding beyond the strictly financial aspects of clients’ lives (although clients may not yet be willing to go too far beyond the boundaries of their financial lives)

We also have a number of articles on retirement:

• How data from both the United States and United Kingdom show that average annual spending after inflation declines throughout retirement, and the implications for creating financial plans
• Why mini-retirements can not only be relaxing, but also create significant tax planning opportunities in the low-income years (that can even help to offset the long-term cost of taking extended time off from work!)
• How advisors can apply the lessons of those pursuing financial independence at an accelerated pace, not just in terms of savings habits, but the mindset it takes to FIRE early (from ignoring social comparisons to getting clearer about what is ‘Enough’)

We wrap up with three final articles, all about how negative emotions can actually lead to self-improvement:

• How experiencing sadness, anger, and anxiety can actually make you happier and smarter in the long run
• Why learning to get comfortable with the loss of the known (as opposed to reducing future uncertainty about the unknown) may be the key to getting comfortable with change
• How addressing, rather than avoiding, regrets can lead to self-growth, and perhaps fewer regrets in 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 a study showing that private equity firms are targeting financial advisory firms with relatively clean disciplinary records for acquisitions, but that once acquired, advisor misconduct at these firms skyrockets an average of 147%! The reason for this jump is unclear, but potential explanations include heightened pressure from private equity owners to increase profits, or pushing too hard to cross-sell their other portfolio companies’ products and underestimating the compliance requirements of the advisory business. Either way, the study suggests that firm owners considering a sale who want to ensure that their clients remain in good hands could increase their due diligence of potential acquirers and their business practices!

Also in industry news this week:

• A new FINRA rule went into effect on January 1 that will attempt to reduce the risk to consumers from brokerages with poor disciplinary records by requiring these firms to fund a segregated account to pay potential arbitration awards (and increase their cost of doing business as long as they insist on keeping problematic brokers onboard)
• RIA M&A activity is expected to continue to surge in the coming year, according to a recent survey, with lofty firm valuations expected to sustain as well

From there, we have several articles on advisor communications and marketing:

• How to respond when clients object to their advisor’s recommendations (and why asking more questions might be a better approach than more aggressive persuasion to get them to implement)
• Why the best-performing types of pages on financial advisors’ websites include not only the basic “Who” and “What” of the advisors, but also show why a prospective client could be the right fit for the advisor and how the advisor helps their clients reach their goals
• Why advisors should focus less on client referrals and more on Google Reviews as a one-to-many client referral platform in light of the SEC’s marketing and testimonial rule

We also have a number of articles on being an effective manager and leader:

• Why sales training programs for financial advisors can prove ineffective if they use a “one-size-fits-all” approach without considering the personalities and needs of the advisors themselves
• How leaders can thread the needle between micromanaging their team and being too hands-off by timing their help for when it’s needed most (and backing off when it isn’t)
• Why most advisory firms need at least one person tasked with having a vision for the firm and a strategy to get there – which, as firms grow, may be someone other than the firm’s owner who is hired strictly for their “professional” leadership

We wrap up with three final articles, all about New Year’s Resolutions:

• Why one advisor shifted from making New Year’s Resolutions to focusing on the habits that make it more likely he will achieve his goals (and letting the results fall where they may)
• Ways individuals can make their financial lives happier in 2022, including by focusing internally rather than externally, simplifying their finances, and getting on the same page financially with a spouse
• Why failing at New Year’s Resolutions can actually lead to better personal and professional growth in the future

Enjoy the ‘light’ reading!

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