Enjoy the current installment of "weekend reading for financial planners" - this week's edition kicks off with an interesting new advisor survey showing that the number of face-to-face client meetings being held is already starting to decline, with some meetings being replaced with communication alternatives from larger social events to email and newsletter distributions to regular contact via social media; the end result is client communication that is more frequent and more timely but also more targeted for relevance and allowing the advisor to be more efficient.
From there, we have several practice management articles this week, including a review by Bob Veres of the recent FPA NexGen conference and the major themes emerging from young advisors, a look at what motivates young Millenial employees from the perspective of a "robo-advisor" who hires them to build the company's technology platform, tips from practice management consultant Angie Herbers about how advisors must learn to recognize that what was effective to get them to where they are may not work to get to the next level, a guide from the Journal of Financial Planning about how to actually build a strategic business plan for your existing advisory firm step-by-step, and a great cover story from Financial Planning magazine about the rising trend of wire fraud targeting advisors and what to do about it.
We also have a few investment-related articles, including a discussion of how much advisors and their clients may be giving up (and may have lost already in the past several years) by investing in short-term bonds waiting for interest rates to rise, a study by Wade Pfau about whether it's reasonable to haircut long-term returns when doing straight-line financial planning projections to account for sequence-of-return risk, and some ideas about how to implement a covered call strategy for clients who want to protect against risk or generate more "income" cash flows for retirement.
We wrap up with three interesting articles: the first looks at a recent survey of 700 advisors about how they define success and what it takes to get there (key points include that having the right mindset is essential, but success is most commonly defined by levels of personal engagement, client engagement, and team engagement in the firm); the second is a reminder that while there are clearly many things that computers and robots can do better than humans, there is still a lot that humans do better; and the last is a fascinating look at whether we perhaps don't give enough credence to rules of thumbs and instead rely far too much on impossibly complex analyses that don't actually improve (and may even worsen) the outcome.
And be certain to check out Bill Winterberg's "Bits & Bytes" video on the latest in advisor tech news at the end! Enjoy the reading!