feed - Part 88

Nerd’s Eye View Is Reborn

August 22, 2013 06:01 am 27 Comments CATEGORY: Nerd's Eye View

Almost 6 years ago, the Kitces.com website launched, and along with the new site, this Nerd's Eye View blog was born. At the time it was launched, I was quite proud of the site. It was "sharp" and "cutting edge" for its time, and early readers of the blog were quite complimentary (and I'd like to think they weren't just being polite!).

As the years have gone by, though, the technology underlying the site grew more and more aged, and failed to keep pace with the great leaps in blogging and website platforms that have exploded forth since 2007. The visual look of the site began to feel a bit dated, and the explosion of mobile devices turned what was already a "not very large" default font size into reading that was painfully too small.

Accordingly, the time had come this year for an overhaul to bring the Nerd's Eye View up to current standards, and I'm thrilled to announce that today is the fresh launch of the new site. You'll see a number of changes immediately, with many further enhancements to roll out in the coming months as well! I hope you enjoy what you see, and please don't hesitate to share your feedback (good or bad!) as we work out the final kinks!

9 Ways A Virtual Assistant Can Streamline Your Financial Advisor Blogging

August 20, 2013 11:05 am 20 Comments CATEGORY: Practice Management

Getting started with blogging as a financial advisor can be a challenging task. While there's a lot of appeal in a blogging-and-social-media-based marketing strategy - including the fact that it's very inexpensive marketing, and can be an especially good way for a small firm to differentiate itself - most advisors aren't exactly sitting around with a lot of spare time in their day to take up a new marketing initiative.

In this guest post, Investment Writing blogger Susan Weiner - author of the newly released "Financial Blogging" book for advisors - shares some insights about how advisors can leverage the services of a virtual assistant, at a low cost, to help get started with a new blogging effort. As someone who uses a virtual assistant (VA) to help with some of her own blogging, Susan has excellent perspective "from the trenches" about what does and doesn't work in hiring a VA.

So if you're an advisor who's been thinking about trying to start blogging but realizing you'll need some help - or perhaps an advisor who's already making the effort but would like some inspiration about how to more effectively leverage your time - today's guest post should be helpful for you with some tips and guidance about how to go down the virtual assistant road yourself. Who knows, you might even find that virtual assistant can help you with some other parts of your busy work life, too?

Using Mind Mapping To Get Paid For Financial Planning Shadow Work

August 12, 2013 11:01 am 7 Comments CATEGORY: Client Trust & Communication

As financial planners seek out differentiation in an increasingly crowded environment, a new trend is emerging towards the use of more interactive software tools to provide a more engaging client experience. While many of these new approaches revolve around the use of financial planning software live with clients - replete with quick data entry support and sliders for clients to manipulate the goals and see immediate impact - the reality is that even the old-fashioned data gathering meeting represents an opportunity to use technology to better engage new clients, and the tool of choice appears to be the mind map.

Although mind mapping has been used in other business contexts - from keeping personal thoughts organized to creative team brainstorming meetings - the tool may be especially appealing for financial planning, as it not only visually captures a lot of client information that is otherwise hard to see all at once, but it does so in a manner that provides a tangible deliverable to what others is some of the most intangible "shadow work" that we do for clients. Whether as a way to justify fee increases, or simply to increase the firm's value proposition, adopting mind mapping becomes an appealing way to create perceived value for work that is ultimately useful for clients but also time-intensive and often unrecognized.

The rising interest in the use of mind mapping in financial planning has even led to the emergence of a training program being offered specifically to advisors on how to use the tool with clients, build a business model around it, and provides some templates to help get started. Of course, ultimately any mind mapping templates will still become very specific to the planning firm and its clientele - in no small part because the template becomes a de facto checklist process for the client discovery meeting - so some firms may simply wish to dive in themselves and get started! But regardless of the adoption route that is chosen, mind mapping appears to be an increasingly appealing tool for cutting edge firms to create a unique value and experience for clients.

Weekend Reading for Financial Planners (August 10-11)

August 9, 2013 05:05 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's reading kicks off with a big announcement by the CFP Board this week of some "clarifications" to its compensation disclosure rules, including the removal of the "salary" compensation category and an affirmation that advisors cannot be classified as fee-only if they or their firm merely could receive a commission, even if no client has ever paid one. Other industry news and commentary this week includes a look from Ron Rhoades about whether the Garrett Planning Network is a model of how most fiduciary advisors may be compensated in the future, the latest response from the 401(k) industry regarding Yale professor Ian Ayers' threat to expose high-cost employer 401(k) plans to the public, and a discussion of some big changes coming to the DFA investment process.

From there, we have a number of practice management articles, including some tips about how to be more quotable as an advisor when talking to the media, a look at how client advisory boards can be executed effectively, some best practices in vetting and screening potential financial planning candidates for your latest job opening, and how to delegate effectively (not just advice that you should delegate, but what you need to do to actually get it done!). We also have a pair of technical articles, including one providing an in-depth review of the File-and-Suspend and Restricted Application claiming strategies for Social Security benefits (and when they work best), and another that discusses planning opportunities for same-sex couples after the Supreme Court decision on the Defense of Marriage Act.

We wrap up with three interesting final articles: the first is from Jason Zweig of the Wall Street Journal about how financial services products that are less liquid or have exit penalties may actually be a positive "precommitment" strategy to help clients stay the course, an insider's "confession" of the problems in the institutional investing world (with striking parallels to the behaviors of many affluent clients), and a "farewell" message from Investment News technology reporter Davis Janowski who is leaving the publication after six years but shares some interesting perspective on the world of technology for advisors as he moves on. Also included this week is a glimpse at technology consultant Bill Winterberg's new video edition of his weekly "Bits and Bytes" covering the latest news and developments in advisor technology. Enjoy the reading!

Weekend Reading for Financial Planners (July 20-21) – Practice Management & Technology Edition!

July 19, 2013 05:01 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue is focused on articles about practice management, career development, and technology, and kicks off with a discussion from industry commentator Bob Veres about advisor fee models, particularly the AUM fee model, and how many are looking at changing and evolving beyond an AUM-centric business focus.

From there, we have a number of practice management articles, including a discussion of whether advisors are increasingly "stealing" clients from others in order to grow, how many succession planning deals are actually poorly structured and priced, and the importance of having a career track in your firm to attract and retain talent (and potential future successors!).

There are also a number of technology-related articles, including a review of new digital content marketing services Vestorly and AdvisorDeck, a review of financial planning software eMoney Advisor and how it can also serve as a personal financial management tool for clients, the importance of adopting rebalancing software, the viability of using cloud-based office productivity software like Microsoft Office 365 or Google Apps, and how to balance the benefits of marketing automation with the importance of personalized service.

We wrap up with three final articles: the first is from Angie Herbers and looks at how relinquishing some control to employees is crucial for staff (and ultimately the firm itself) to grow and develop; the second is a case study discussion of the XCelsior study group as an example of the importance and value of being involved with a study group; and the last looks at how clients in the future will have different needs and expectations of their advisor than the baby boomers of the past, and that becoming a "Gen-Savvy Financial Advisor" in order to succeed may require not just an evolution for advisors but an entire revolution from the way things are currently done. Enjoy the reading!

Weekend Reading for Financial Planners (July 6-7)

July 5, 2013 04:55 pm 2 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue kicks off with three interesting practice management articles: the first suggests it may be time for advisors to re-evaluate the value of serving smaller clients, who PriceMetrix finds are 108 times more likely to leave their advisor than become a large client while with the same advisor; the second looks at the tendency for advisors (even/especially fiduciary RIAs) to selectively discuss/disclose their fees but not fully explain all underlying fees; and the third examines the emerging trend towards financial advisory firms engaging in mergers and acquisitions to grow and reach scale.

From there, we have a wide array of technical articles, including: a look at fascinating new research that suggests that immediate annuities may be far less effective than previously posited due to how they are impacted by unexpected client health events; new estate planning trusts that focus more on the income tax opportunities at death (e.g., step-up in basis) rather than avoiding estate taxes; the implications of this week's announcement to delay the employer mandate for the Affordable Care Act; important things to know about the new state health insurance exchanges (which are still scheduled to open up in October!); how to plan for Social Security dependent benefits and why it's not always a good idea to delay until you're age 70; and the latest from PIMCO's Bill Gross about how the rising turmoil in bonds may be troubling but it's not time to abandon ship.

We wrap up with three final articles that look a bit more inward: the first is from the Farnam Street blog and provides tips about how to quickly build rapport with someone when meeting for the first time (e.g., a prospective client!); the second is an introspective look from the Wall Street Journal's Jason Zweig about the challenges of saving investors from themselves and why it's a worthwhile effort to pursue anyway; and the last delves into some of the latest research about the connections between money and happiness and how to utilize more money to ensure it really brings more happiness. Enjoy the reading!

Deadline Looms For SEC Request For Information On Potential Uniform Fiduciary Standard

July 1, 2013 11:01 am 1 Comment CATEGORY: Planning Profession

Almost four months ago, the SEC released its Request For Information to assess the costs and benefits of a potential uniform fiduciary standard for brokers and investment advisers. This week, the deadline for the comment period ends, and the SEC will begin to evaluate comments and come to a decision about whether to move forward with a fiduciary rule, to back away from it, or to simply partially "harmonize" the rules between brokers and investment advisers without fully imposing a uniform standard.

Ultimately, the SEC's cost-benefit analysis study will just be one of many steps in the progression towards a potential uniform fiduciary standard, but it is a critically important one, as the SEC's recent struggles in having its rules challenged have made it clear that the SEC is unlikely to proceed on the fiduciary issue unless it can get comfortable with the results of its economic analysis. This is especially true as the SEC tries to sort through thorny issues, including the fact that Section 913 of Dodd-Frank mandates that any uniform fiduciary standard must be at least as stringent as the Investment Advisers Act of 1940, but that the receipt commissions alone should not automatically run afoul of whatever the future rule will be.

While several "big hitter" organizations have already weighed in, it's crucial for all advisors who have an opinion on the matter to submit their own comments, whether just to generally support the implementation of a uniform fiduciary standard, or to more specifically offer up detailed comments on their own perspective and personal experiences on the issues, or any quantitative or qualitative information and data they have to share. Accordingly, for those who haven't already submitted a comment letter, now's the time - comments can be sent via email or using the SEC's online form through July 5th!

Weekend Reading for Financial Planners (June 29-30) – Blogosphere Edition!

June 28, 2013 05:02 pm 3 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue is drawn entirely from blogs and bloggers I read who deliver content that has relevant for financial planners. We start off with a relatively new blog, which shares a great guide in how to write an attractive "bio" page as an advisor; in a world where we are often focusing on storytelling to communicate planning strategies and solutions, it's time to better apply the same techniques in communicating about ourselves, too!

From there, we have a few technical articles, including a great discussion of what is (and isn't!) really guaranteed when clients say they're considering a variable annuity with a "5.5% guaranteed growth rate," and a look at whether clients should consider skipping employer-based health insurance as the new health insurance exchanges open up later this year.

Beyond that, there are several articles related to technology and social media this week, including whether the Google Apps platform is a viable solution for a growing advisory firm, a due diligence checklist of questions to ask when evaluating a potential CRM system, some "advanced" tips to getting more productive value out of Twitter, and a look at how advisors might use Pinterest to help grow their business. There are also a few practice management related issues, including a great look at some tips and opportunities in trying to self-publish a book (it's a lot easier than you think and there are lots of resources to help!), some things to consider if you're considering a podcast, and some guidance from Angie Herbers about how to fend off and resolve employee problems without resorting to just firing and replacing them.

>We wrap up with three final articles that look a bit more inward: the first is from Ronald Sier, and looks at whether it is appropriate and ethical to try to influence your clients' decisions (his conclusion: as long as it's done in their interests, yes it's appropriate, and in fact you should be trying to do it!); the second is from Tim Maurer, and his new "Financial Common Ground" initiative that is trying to establish what he calls the "unifying principles of personal finance" that hopefully all experts can agree on, regardless of their business model; and the last is a review of the recent Robert Cialdini book "Yes! 50 Scientifically Proven Ways To Be Persuasive" that includes some fantastic ideas on influence and persuasion that could be used to tweak an advisory firm's communication techniques to improve their business results. Enjoy the reading!

Weekend Reading for Financial Planners (June 1-2)

May 31, 2013 05:02 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "weekend reading for financial planners" - this week's issue starts off with two industry studies: the first shows that an advisor's interpersonal skills and emotional intelligence dominate the traits of what makes the top advisors most successful (as opposed to quality information and advice, which is necessary but not sufficient for maximal success); and the second finds that as overall economic and wealth growth slows in the US, advisors will increasing be forced to compete with other advisors to win clients (or "steal" them), rather than just relying on the newly wealthy for new clientele.

There are several practice management and technology articles this week as well, including a good reminder about why it's so important to say "no" to the wrong prospects, the rising importance of getting involved with the Google+ social network as a way to grow your advisory business, some best practices tips on Twitter for advisors that are genuinely useful, a fascinating profile of what digital marketing for financial planning may look like in the future (and that a few advisors are already implementing today), and some data on how Millenials do and don't differ from older clientele and how advisors may (and may not) have to change to deal with their future clients.

We also have a pair of technical articles, including one looking at how the new health insurance rules will work for 2014 - open enrollment begins in October for millions of people! - and another on how the use of bypass and other estate planning trust strategies are changing as estate planning takes on a more income-tax-centric theme for the many clients who simply no longer face any kind of Federal estate tax liability.

Continuing the opening theme of emotional intelligence, we wrap up with three articles looking at the importance emotional intelligence, relationships, and the value we provide: the first is an interview with Doug Lennick, author of Moral Intelligence 2.0 and a consultant to advisors; the second is a meta analysis from the Harvard Business Review of all the research on emotional intelligence and what we can draw upon from it; and the last is a more general article about how just being in the information of dispensing expert information is no longer sufficient in today's world, and that everyone - including advisors - needs to get out of the business of trying to hoard increasingly commoditized information, and instead deliver real value through non-commodity service, customization, and making complex information relevant. Enjoy the reading!

CFP Board Considers Going Into Competition With CE Sponsors It Regulates

May 13, 2013 11:03 am 8 Comments CATEGORY: Planning Profession

Last week, leaders from the CFP Board, including CEO Kevin Keller, board of directors chair Nancy Kistner, and chair-elect Ray Ferrara, traveled to the FPA Retreat conference and NAPFA's national spring conference. The purpose of the visit was not just to participate in the conference itself or check out the latest growth of the organizations; instead, it was to gauge support from these gatherings of the experienced planner community for a potential new initiative: the CFP Board is considering whether it should begin to offer CFP Continuing Education (CE) credit to its certificants, going into direct competition with the CE sponsors it is simultaneously responsible for overseeing, in an effort to raise the quality of CFP CE.

Not surprisingly, given the fiduciary focus of both FPA and NAPFA members and the efforts of the respective organizations on the Financial Planning Coalition - which is currently making the lobbying case for why a conflicted organization like FINRA should not be allowed to oversee registered investment advisers - planners from both groups were negative on the proposal, citing the blatant conflict of interest involved if the CFP Board were to compete with those it regulates.

While at this point, the reality is that this is just a preliminary discussion, and not even a substantively drafted proposal issued for comment, it nonetheless raises a more substantive question: is this really the best idea the CFP Board has regarding how to improve the quality of CFP CE, or does this proposal represent a strategic first step towards something more far reaching, like going into direct membership association competition with the FPA and NAPFA themselves? Will the CFP Board back away from the proposal given the nearly unanimous negative feedback thus far, or will it further tip its hand in pursuing a new strategic initiative?