The Small Business Jobs Act of 2010, passed earlier this year on September 27th, opened up the possibility of completing an in-plan Roth conversion rollover from a 401(k) or 403(b) to a Roth 401(k) or Roth 403(b). However, the rules are not quite as simple and flexible as typical Roth conversions, due to the fact that the account is still first and foremost a qualified employer retirement plan. Fortunately, the IRS has issued guidance to help individuals understand the details of the new rules - which is fortunate, because there are some significant differences that could otherwise catch clients (and their planners) unaware!
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a recent survey indicates that clients of financial advisors are more confident than others about their financial preparedness for retirement and are more likely to have a financial plan in place that can weather the ups and downs of the economy (perhaps increasingly relevant given recent market volatility), indicating that advisors have an opportunity to frame the value of their advice in terms of the real-world outcomes their clients experience beyond their portfolio value, including greater confidence and peace of mind with their financial situation!
Also in industry news this week:
- With a potential SEC regulation requiring RIAs to engage in enhanced "know your customer" practices under consideration, the Investment Adviser Association is arguing for a more tailored approach to identifying risky clients and a longer implementation period to relieve the potential burden on RIAs
- The SEC is investigating the cash sweep programs at multiple wirehouses as these firms, as well as RIA custodians, consider raising their rates to make them more competitive with other (higher-yielding) alternatives for client cash
From there, we have several articles on retirement savings:
- The pros and cons of maxing out 401(k) contributions, from the ability to take a more flexible approach to tax planning to the potential to create liquidity challenges
- Why the tax benefits of investing in 401(k)s compared to taxable brokerage accounts might not be as significant as might be assumed in certain circumstances
- A proposed hierarchy of tax-preferenced savings vehicles, from "triple-tax-preferenced" Health Savings Accounts to (grantor) dynasty trusts
We also have a number of articles on estate planning:
- The potential advantages for individuals of gifting during their lifetime rather than waiting until their death, including the ability to 'preview' how a recipient will handle the gift before receiving a potentially larger inheritance
- While providing a "living inheritance" can be a tax-efficient way to give money to loved ones, it comes with a range of potential considerations, from the sustainability of the giver's financial plan to the potential intra-family conflict it could cause
- Why gifting privately held business interests while alive can be a potentially tax-savvy move for business-owner clients
We wrap up with three final articles, all about couples and money:
- How understanding the deeper feelings that money generates can help advisors better navigate financial conversations with client couples
- How couples in America are organizing their finances today, from the decision of whether to have joint or separate accounts to how they divide expenses
- Why financial "translucency" can help couples with different spending philosophies navigate potential money conflicts
Enjoy the 'light' reading!
Traditionally, people tend to think of their estate as comprising one big 'pot' of assets, focusing on the sum of all the assets rather than on each individual asset itself. Consequently, when in estate planning, thinking about how to divide their assets after their death, they often aim to simply apportion the whole pot among their beneficiaries, without regard to the nature of each individual asset.
Although the 'one big pot' mindset might be the simplest approach to estate distribution, it may not be the one that results in the most wealth being passed down or the most equitable distribution of assets between each beneficiary. That's because, depending on the beneficiaries' individual situations, different types of assets will have different tax characteristics when inherited, which might make particular assets better or worse for different beneficiaries depending on their tax circumstances. For instance, if a traditional IRA is split equally between 2 beneficiaries in different tax brackets (or in different states of residence with different state tax rates), the beneficiary in the higher tax bracket will pay more tax on their share of the IRA (and consequently receive less on an after-tax basis) than the other.
Consequently, it can be beneficial to approach estate planning on an asset-by-asset basis to make the process more equitable and tax efficient by accounting for the disparity of income tax treatment of the different assets in the estate (and the unequal tax circumstances of the beneficiaries who will inherit them). For instance, an estate with a mix of pre-tax retirement assets (taxed upon withdrawal by the beneficiary) and nonqualified assets (which typically receive a step-up in basis and have fewer tax consequences for the beneficiary) can be allocated such that the pre-tax assets are left to the beneficiary with a lower tax rate and the nonqualified assets to the beneficiary with a higher tax rate. Then not only will each beneficiary receive the asset that results in the highest after-tax value to them, but the total after-tax value of all the assets passed down will be higher than if they were each simply divided equally between the beneficiaries.
Notably, an asset-by-asset approach to estate planning isn't 'just' about drafting documents like wills or trusts; it requires full knowledge of the client and the details of their (and their beneficiaries') financial, tax, and overall life circumstances. Which leaves financial advisors in a unique position to aid in the process of deciding when an asset-by-asset approach will result in sizable tax savings for the estate and beneficiaries and when a traditional 'split-the-pot' approach would make more sense. As while estate attorneys may meet with the client only rarely (if at all) after the actual estate documents are drafted, advisors usually have regular recurring meetings with clients, giving advisors the opportunity to keep up with the family's dynamics and tax situations and recognize when a change would be warranted.
The key point is that, just as clients have different planning needs, goals, and tax circumstances during life, the same applies to their beneficiaries and assets after they're gone. Incorporating the impact of taxes in the financial planning process to help clients keep more of what they've earned in life makes as much sense as using the same approach in the estate planning process, by considering what happens from a tax perspective after the assets reach their intended destination. And, by offering a more equitable distribution scheme for their beneficiaries, advisors can help their clients ensure they pass the most (after-tax) wealth to the next generation!
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that at a time when employee retention has heightened importance for advisory firms given the ongoing competition for advisor talent, recent studies indicate that factors such as firm culture and leadership, as well as providing advisors with a sense of autonomy, can play important roles in building advisor loyalty to the firm. Which suggests that while firms might be tempted to zero in on compensation when it comes to retaining advisors, focusing on these other factors (which do not necessarily involve hard dollar expenses) could pay off in the form of increased advisor (and client) retention over time.
Also in industry news this week:
- 2 House committees this week advanced legislation that would halt implementation of the Department of Labor's new Retirement Security Rule, which, combined with ongoing lawsuits, threaten to derail the regulation either before or soon after it becomes effective in late September
- A Federal judge has put the future of the Federal Trade Commission's ban on non-compete agreements in limbo, issuing a limited temporary injunction and indicating that a final ruling on the regulation (with possible nationwide impacts) could come before the ban goes into effect in early September
From there, we have several articles on tax planning:
- Why potential upcoming increases to marginal tax rates and recent changes to RMD rules for inherited accounts could make Roth-style retirement accounts increasingly attractive for many clients
- How advisors can add value not only by regularly analyzing whether Roth conversions might be appropriate for a client in a given year, but also by communicating how they work in a clear manner to help the client better understand the strategy and its potential benefits
- How working clients can get more money into Roth-style accounts, from in-plan 401(k) conversions to in-service distributions
We also have a number of articles on marketing:
- How applying the principles of beauty, simplicity, and creativity when it comes to website design can help advisory firms stand out at a time when differentiation is becoming increasingly challenging
- Why targeting a firm's website and marketing content to an ideal client persona can help prospects better understand whether the firm can meet their unique needs
- How becoming a "knowledge sharer" online can help advisors build their brand and support higher quality personal financial information amongst a sea of "finfluencers"
We wrap up with 3 final articles, all about exercise:
- While middle age is associated with a growing number of aches and pains caused in part by natural muscle loss, regular exercise can help mitigate these trends and potentially lead to a better quality of life
- Why resistance training, in addition to aerobic exercise, is an important part of a healthy lifestyle and can ultimately improve longevity
- How targeting 4 "pillars" of exercise – stability, strength, aerobic efficiency, and peak aerobic output – can help an individual lead a healthier lifestyle, even if their exercise routine dropped off during middle age
Enjoy the 'light' reading!
The Tax Cuts and Jobs Act (TCJA), passed in 2017, was one of the most extensive pieces of tax legislation to be passed in the last 30 years, touching many aspects of individual, corporate, and estate tax. However, most of TCJA's provisions are set to 'sunset' at the end of 2025 – an event that would have at least as much impact as TCJA's initial passage.
From an advisor's perspective, TCJA's impending expiration raises the importance of planning for clients who will potentially be impacted, which, given the law's broad scope, could be nearly every client. And yet, the timing of the sunset provision at the end of 2025 means that the actual fate of TCJA will largely hinge on the uncertain outcome of the 2024 U.S. elections. In reality, any law that extends or replaces TCJA would likely not pass until well into 2025, creating a very limited window (potentially only days long) in which to implement any planning strategies. And so even though there's uncertainty today about whether or not TCJA will sunset as scheduled, it's still not too early to start making plans for either contingency so they can be triggered quickly once there is more certainty.
For many clients, one of the biggest questions is whether they'll have a higher or lower marginal income tax rate after TCJA expires than they do today, and whether it is therefore reasonable to accelerate income – i.e., to recognize it before the end of 2025, such as by converting pre-tax retirement funds to Roth – or to defer income to be recognized in 2026 or beyond. And although TCJA's reputation as a broad tax cut might give the impression that everyone's tax rates would increase after its expiration, comparing the current Federal tax brackets with their estimated post-TCJA equivalents shows that a fair number of households will actually see their tax rates decrease.
Beyond the tax brackets themselves, however, households will also see significant changes to how their taxable income is calculated post-TCJA. First, the combination of a lower standard deduction and the elimination of the $10,000 cap on deductible state and local tax payments means that many more people will be taking itemized deductions instead of using the standard deduction. Second, the reinstatement of personal exemptions means that households will be able to take an estimated $5,010 exemption per taxpayer or dependent, meaning that larger households could see a large reduction in their taxable income. With the caveat that the expiration of TCJA will also bring back the Personal Exemption Phaseout (PEP) and "Pease limitation" on itemized deductions above a specific income threshold, both of which effectively create a surtax on income within the threshold range, increasing the household's marginal tax rate above their nominal tax rate based on the tax brackets alone.
For owners of pass-through businesses like partnerships, S corporations, and sole proprietorships, the biggest concern around TCJA's sunset is the elimination of the Section 199A deduction on Qualified Business Income (QBI), which allowed for a deduction equal to 20% of the lesser of the taxpayer's QBI or their taxable income. For most pass-through business owners, the end of the QBI deduction will result in much higher marginal tax rates in 2026 or later, with one exception: Owners of Specified Service Trades or Businesses (SSTBs) like lawyers, consultants, and financial advisors, whose QBI deduction phases out above certain income thresholds, will have a much higher marginal tax rate on any income earned within the threshold range – meaning that while it might make sense for most business owners to accelerate income in 2024 and 2025 while the QBI deduction is still in effect, SSTB owners within the phaseout threshold range would be better off doing the opposite and deferring income until after TCJA expires.
The key point is that different households will experience the end of TCJA in a wide variety of ways, with income level, filing status, number of dependents, and QBI all factoring heavily into the impact that the TCJA sunset will have. And although TCJA's ultimate fate may still be undecided, for at least some clients the potential benefit of taking action today (e.g., to recognize income at a lower marginal tax rate today versus after TCJA expires) may be worth taking the risk that TCJA is ultimately extended – since in that case the client would have simply recognized income at the same marginal rate that they would have later on, merely 'costing' them the value of a few years of tax deferral. So by understanding how each client stands to be affected, advisors can narrow their focus on the planning strategies that will have the biggest benefit for their clients.Read More...
After several turbulent years in both markets and workforces, 2024 appears to be the 'most normal' year of late, with strong market performance, cooling (or at least no longer rising!?) interest rates, and relatively little new tax legislation (yet).
Yet the need for advisor education – and the regulatory requirements to get it (in the form of Continuing Education obligations) – never ends, with the latest focus for most financial advisors being on the ongoing expansion of NASAA's 2020 Model Rule that implemented the first Investment Advisor Representative (IAR) requirements to get 12 hours of Continuing Education (CE), including 6 hours of Products & Practices and 6 hours of Ethics & Personal Responsibility, in order to maintain their IAR registration. This new model rule is enacted on a state-by-state basis and has currently been picked up by 18 states… though, because it applies not only to IARs physically located within those states but to anyone who is required to register as an IAR in one of those states, in reality, the new IAR CE obligation is quite far-reaching (especially with California and Florida IAR CE requirements taking effect this year!).
Given the continuing growth of advicers who fall under these new IAR CE Requirements, the Kitces platform is not only continuing to offer IAR CE (along with all of its other CE types) through its Nerd's Eye View blog articles, but, starting this year, has also expanded IAR CE eligibility to our webinars as well. And to meet the growing demand for the required "Ethics & Professional Responsibility" content in particular, we're also excited to announce the return of our IAR Ethics CE on August 29, 2024! Attending IAR Ethics CE Day allows advicers to fulfill all 6 hours of their required IAR Ethics & Personal Responsibility CE obligations in just 1 day, preventing an end-of-year CE crunch and providing high-quality education from top experts in the field of ethics and compliance (while also satisfying their CFP Ethics and IWI Ethics requirements, too!).
In addition to IAR Ethics CE Day, the ongoing growth of our Kitces Education team has allowed us to offer more frequent live CE webinars (now running the 1st and 3rd Tuesday of every month at 3:00 PM EST), and next month, we'll be rolling out our newest Kitces Course, a master class taught by our own Jeff Levine and Michael Kitces on "Optimizing Tax-Efficient Roth Conversion Strategies And Implementation", which will let advisors practice the skill of determining the 'right' amount to Roth convert, identify which clients should do Roth conversions and when, and also explore ways to explain the strategic components of Roth conversions to clients (who may otherwise resist the upfront tax liability, notwithstanding the long-term tax benefit!). Additionally, the upcoming Kitces Value Summit, coming December 12, 2024, will tackle how real advisors provide and communicate their ongoing value to their clients.
Along with the expanded CE offerings, we've also been reinvesting heavily into making the Kitces platform easier to use. Our major focus this year has been on supporting the growing number of multi-advisor firms buying Group and Enterprise subscriptions… and then needing to manage all of their Kitces Group members! Going forward, our new Group and Enterprise dashboards will make it far easier for firms administering their Kitces membership to add and remove individual advisors and to enroll their advisors into IAR CE (as more states add the requirement) with just a few clicks of a button! (And yes, in the coming year, we will be looking at a broader overhaul and re-design of the entire Kitces Members Section for all advicers to make it easier to navigate – we've heard your feedback!😊)
Of course, CE is not the only part of the advisory landscape that's changed. Our newly released Kitces Research on Advisor Marketing shows that fewer advisors are reporting client referrals as a methodology to attract new prospects (and the growthiest firms are relying on referrals the least!), but that there is no one dominant marketing tactic taking its place. Instead, the firms that are the most successful at marketing don't appear to be engaging in materially different tactics than the rest; they simply have more clarity of the ideal client they're pursuing, and how to communicate with them, such that they're executing the same marketing tactics but getting much better results (which, in turn, leads them to invest time and dollars into their marketing efforts and further compound their growth lead!).
In the meantime, if you (or anyone else you know) wants to join our Team of Nerds, stay tuned for more openings in 2024, including the Managing Editor role (available now!), an Operations Coordinator (coming soon!), and other roles. We'll be listing these roles as they become available on our Kitces Career Opportunities page, or you can sign up for our separate Career Opportunities mailing list (via that Opportunities page) to be notified when new positions open up! And for those who don't want to join the team full-time but would simply like to 'Nerd Out' with us or a bit and share what they do or know with their fellow advicers, remember to check out our "How To Contribute" page to see how you can engage with the Kitces platform as a guest writer, presenter, or podcast guest!
Ultimately, though, the focus remains the same as it always has been – on our mission to "Make Financial Advicers Better, And More Successful" – through our 4 strategic pillars of creating Navigational resources, insightful Education, original Research, and skills Development for financial advicers across the spectrum of experience and firm sizes (and yes… or organizational strategy does spell N-E-R-D😊). We look forward to continuing the journey with you through the rest of 2024!
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
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 teams tend to have higher assets under management per advisor, serve wealthier clients on average, and have stronger growth than solo advisors, thanks in part to the efficiencies gained from sharing expertise and back-office support. Nevertheless, these findings could reflect self-selection amongst advisors, with those who don't want to grow past a certain satisfying income (happily and profitably) remaining as solos, and those seeking greater growth upside joining teams.
Also in industry news this week:
- While an infusion of Private Equity (PE) capital has shaken up the RIA M&A market, the ultimate implications for advisors, their clients, and the PE firms themselves remain unclear
- A recent study has found that a significant portion of 'DIY' investors are open to working with a human advisor (and paying for the service), with 'just in time' advice potentially providing an opening for advisors to demonstrate their value
From there, we have several articles on retirement planning:
- Practical considerations for advisors when engaging in (partial) Roth conversions, from assessing the "effective marginal rate" paid on the conversion to deciding when during the year to complete the conversion(s)
- Why regular portfolio rebalancing could be sub-optimal for retirees and how a "rising equity glide path" could lead to greater portfolio size and longevity
- Why an advisor's tools for helping clients successfully navigate the early years of retirement extend beyond asset allocation
We also have a number of articles on practice management:
- A 6-step plan for advisory firms to create a compensation plan that reflects their values and goals
- How firms can use cash bonuses, equity opportunities, and non-monetary perks to attract and retain top talent
- A survey of Gen Y and Gen Z advisors indicates that many of the factors that make a firm attractive to them, from the company culture to training and mentorship opportunities, do not necessarily have to cost firms in terms of hard dollars
We wrap up with 3 final articles, all about overcoming limiting beliefs:
- Tactics for overcoming limiting beliefs and "impostor syndrome" from the "WOOP" technique to participating in "mastermind" groups
- How self-compassion can help one overcome excessive self-criticism and become more resilient when things go wrong
- A 6-step approach to 'defuse' negative thoughts and shift towards more empowering beliefs
Enjoy the 'light' reading!
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that recent surveys indicate that consumers continue to trust human financial advisors more than Artificial Intelligence (AI)-powered tools. Nonetheless, respondents (particularly those in younger generations) do not see this as an either-or choice, but rather anticipate benefitting from working with human advisors who leverage AI tools for certain tasks (e.g., detecting fraud or analyzing data) to provide a better client experience!
Also in industry news this week:
- Backers announced the new Texas Stock Exchange, which seeks to provide companies with a lower-cost alternative to the NYSE and Nasdaq, which, if successful, could create a more competitive landscape and potentially better execution and reduced trading costs for financial advisors and their clients
- The American College of Financial Services is launching a new certification focused on tax planning, offering an opportunity for financial advisors to dig deeper into an increasingly valuable part of the planning process
From there, we have several articles on investment planning:
- Why real estate, high-yield corporate bonds, and cryptocurrencies might not offer the diversification benefits one might assume
- How exchange funds can potentially help advisors and their clients reduce concentration risk in a tax-efficient manner
- Why today's stock market concentration is not necessarily an outlier in historic terms and might not actually be detrimental to client portfolios
We also have a number of articles on the intersection of financial planning and disabilities:
- How financial advisors can support clients whose child has a disability, from helping them balance their own financial needs with those of their child to leveraging accounts that do not disqualify individuals with disabilities from receiving government benefits
- Why having an ADA-accessible website not only can help financial advisory firms avoid potential legal trouble, but also attract more clients in the process
- How advisors can support the estate planning process for clients with a disabled family member, from confirming the clients' goals are communicated clearly to ensuring that any special needs trusts are administered properly
We wrap up with 3 final articles, all about spending time well:
- The value of not only considering one's own lifespan and "healthspan", but also those of loved ones when it comes to setting goals and making plans for the future
- Best practices for going on a sabbatical that will allow an individual to truly unplug and reflect on their personal and/or professional lives
- How engaging in a "depth year" can be a more meaningful alternative to constant accumulation
Enjoy the 'light' reading!
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that the Financial Planning Association and Money.com are planning to publish a “Best Financial Advisors” list based on advisors’ education, credentials, and experience, as well as harder-to-quantify areas such as trust factors and client communication. Going beyond FPA’s existing PlannerSearch tool, the narrowed-down list is meant to help consumers identify a focused subset of the most reputable planners. Though given that the list will be limited to FPA members who complete a detailed questionnaire, it might not be a truly comprehensive list of the ‘best’ planners… and even more impactfully, could upset current FPA members who pay their dues like every other member but are told they’re “not good enough” to be recognized by their own membership association as one of the “best” to Money.com’s millions of consumers?
Also in industry news this week:
- Legislation that has passed through the U.S. House of Representatives and is now being considered in the Senate would increase the number of firms classified as “small entities” and would require the SEC to assess the impact of proposed regulation on this newly enlarged class of investment advisers (which tend to have fewer compliance staff and resources available compared to larger firms)
- A recent study indicates that many retirees, particularly those that engage in a “partial retirement”, experience spending volatility at a time when sequence of return risk is the most threatening
From there, we have several articles on tax planning:
- The IRS released its annual “Dirty Dozen” list of tax scams, many of which target wealthy individuals, including abuses of certain trusts, monetized installment sales, and improperly valued art donations
- How advisors can help clients avoid falling prey to tax scams, from encouraging good cyber hygiene to serving as a second opinion on questionable tax strategies that have been pitched to the client
- How advisors can support clients in evaluating the qualitative and quantitative consequences of engaging in geographic arbitrage to reduce their state income tax bills
We also have a number of articles on clients going through a divorce:
- How advisors can add value for clients going through the divorce process, from offering an empathetic ear to analyzing the impact of a proposed division of assets
- The unique challenges (and rising incidence) of “gray divorce” and the key planning topics for advisors and their clients in this situation to address
- The ethical considerations for financial advisors when client couples are going through a divorce
We wrap up with three final articles, all about career satisfaction:
- How the concept of the “hedonic treadmill” can help explain why reaching professional goals often leads to fleeting satisfaction, and the alternative practices that can lead to enduring happiness
- Why letting go of the “pursuit of happiness” might be more likely to lead to greater contentment than trying to cross off as many items as possible from a ‘to-do’ list
- 3 mindset shifts that can help advisors find satisfaction from their (incremental) professional accomplishments
Enjoy the ‘light’ reading!
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
![Weekend Reading 150x150 Final](https://www.kitces.com/wp-content/uploads/2017/04/Weekend-Reading_150x150_Final-150x150.png)
Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that CFP Board announced that it has crossed the milestone of 100,000 CFP professionals in the United States, and despite having just celebrated its 50th anniversary last year, just set a record high in the number of advisors sitting for the CFP exam this March, reflecting the value many financial advisors and consumers place on the brand, including the requirements to obtain it as well as the standards CFP professionals must follow (though, as CFP Board has recognized, there is potential room for it to improve in both of these areas!).
Also in industry news this week:
- The Office of Management and Budget (OMB) has completed its review of the Department of Labor's new "fiduciary rule", indicating that it could be released in the coming days or weeks (though, like its predecessors, its ultimate disposition is likely to be determined in the courts)
- The IRS announced this week that it is excusing Non-Eligible Designated Beneficiaries who inherited IRAs and are subject to the "10-year rule" to distribute these accounts from having to take RMDs again in 2024 (just as it did for 2021, 2022, and 2023) and indicated that Final Regulations regarding RMDs for those in this position could be coming this year
From there, we have several articles on retirement planning:
- 4 unique risks retirees face when drawing down their assets, from sequence of returns risk to tax risk, and how financial advisors can help clients mitigate them
- How the differential effects of the "Great Recession" have led to younger Baby Boomers having fewer assets than their older Boomer counterparts
- How financial advisors can help their clients identify and avoid a potential retirement income "death spiral", whereby a client's assets are depleted over the course of only a few years
We also have a number of articles on financial advisor marketing:
- 5 relatively low-cost marketing tactics for financial advisors, from expanding the types of Centers Of Influence they approach to leveraging "social proof" to attract clients
- How advisors can boost the relevancy and effectiveness of the "Calls To Action" (CTAs) on their website
- Strategies advisors can use to build urgency and help reluctant prospects overcome their hesitance to sign on to become clients
We wrap up with 3 final articles, all about online security:
- A recently released feature can help protect iPhone owner's private data from thieves who are able to access their phone and passcode
- How activating 2-factor authentication and other security measures can help protect users' social media accounts
- Why the "private browsing" feature of internet browsers does not provide the level of anonymity users might assume
Enjoy the 'light' reading!