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Weekend Reading For Financial Planners (October 17–18)

October 16, 2026 02:00 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week’s edition kicks off with the news that a survey by Vanguard of investors on its platform found that many of those who have engaged with Artificial Intelligence (AI) tools for money management or planning actually value their (human) advisor more because of these interactions, with very few indicating the opposite. Further, while the broader pool of investors surveyed appeared to largely use AI for quick (and free) answers to questions, there was significant discomfort amongst respondents when it comes to letting AI act on their behalf. Which suggests that while the ultimate level of ‘competition’ from AI for human advisors continues to develop, advisors who are able to lean into what makes them human (e.g., forging a deep understanding of their clients’ situations) as well as serving as a trusted source of information and reliable actor when it comes to executing decisions could see greater interest from prospects and loyalty from clients in the years ahead.

Also in industry news this week:

The Social Security Administration announced this week that the annual cost of living adjustment for 2027 will be 3.6% (though potential changes to shore up the Social Security system could end up playing a larger role in seniors’ long-term finances)
Congress has passed legislation that would change the names of key ages related to claiming Social Security benefits, linking them more closely to the size of benefits received

From there, we have several articles on Required Minimum Distribution (RMD) planning:

10 common RMD mistakes (and how financial advisors can help clients avoid them), from challenges in correctly coordinating RMDs across accounts to errors made when leveraging the ‘still working’ exception
The pros and cons of taking RMDs at the beginning, end, or throughout the year
Why the mechanics of taking RMDs for recently inherited IRAs can differ by custodian and lead to challenges for beneficiaries

We also have a number of articles on investment planning:

An analysis of historic asset class performance when bond yields spike suggests that while there tends to be short-term pain for longer-maturity Treasuries, there could be some light at the (unknown) end of the tunnel
Why investors might consider rebalancing at a time of higher bond yields and when many portfolios likely have veered from their target asset allocation
While some investors might be tempted by the current yields offered by longer-maturity Treasuries, cash-like instruments could provide a more attractive risk-reward balance for assets needed to cover shorter-term expenses

We wrap up with three final articles, all about being a better conversationalist:

While some individuals dislike ‘small talk’, research suggests it can provide professional and community-building benefits
Strategies to make yourself easier to talk to, from making a clear introduction to offering intriguing details about your life
13 questions advisors can use to better get to know new clients and their planning needs

Enjoy the ‘light’ reading!

When Keeping Your Options Open Is Riskier Than Making A Commitment: Kitces & Carl 201

October 15, 2026 07:06 am 0 Comments CATEGORY: Kitces & Carl Podcast

Kitces & Carl Ep Keeping Your Options Open

One can argue that financial planning is, at its core, about navigating different choices and trade-offs. Some decisions can have outsized practical, financial, and emotional impacts, such as when to retire, quit a job, or start a business. Succeeding and failing will each bring high consequences, and many people opt to "keep their options open"… but does that, too, have a cost?

In this 201st episode of Kitces & Carl, Michael Kitces and Carl Richards discuss the comparative advantages to making a decision vs. keeping one's options open – and when it may make sense to commit.

A lot has been said about "sampling" different lifestyles – as a low-stakes example, it is helpful to rent a paddleboard a few times before buying one. Similarly, it can be helpful to spend a prolonged amount of time in the country or city a person wants to live in. But sometimes, trying to keep "all options open" means that no progress is actually made; in other words, a person stays stagnant. Sometimes, while an ‘irrevocable' decision can be daunting, it can also lead to greater happiness than a safer, reversible choice. The reality is that while we all need to hedge decisions at times, there is a case to be made for committing and ‘burning' the proverbial bridge that needs to be crossed. In committing to something, we also give ourselves permission to dedicate our energy to it – which can yield greater results than the less committed decision to "leave doors open".

Alternatively, it may be worth evaluating the energy spent analyzing (and over-analyzing!) different decisions, compared to the energy of commitment. For example, if someone has ten units of energy, how much of that energy should be spent analyzing the pros and cons of a decision? How much that of energy should be spent ‘making' the decision the right one? For some decisions, it can genuinely be worth spending a prolonged amount of time deliberating, but often, it may be worth it to ‘simply' make a decision and keep moving.

In client conversations, advisors can not only provide a complete view of their financial flexibility and options, but also help clients think through the emotional side of these decisions. For example, advisors can ask, what if the ‘default' option were to disappear? What would the client do instead? Ultimately, the advisor may also end up as an accountability partner when a client has been stuck in deliberation for a prolonged amount of time. Even something as simple as flagging that a client has been in a state of indecision for a prolonged period of time can be helpful.

Ultimately, the key point is that while some decisions are challenging (and intimidating!) to make, as the saying goes, not making a choice is still a choice. The question to advisors – and their clients – is, what to do with their limited time, attention, and other capital. With some level of continual curiosity and momentum, advisors and their clients can gradually right-size their lives to discover what they truly want!

New Treasury Regulations Introduce (Mandatory) Auto-Enrollment And Individual Stocks To Sec. 530A Trump Accounts

October 14, 2026 07:01 am 0 Comments CATEGORY: Taxes

Sec. 530A accounts a.k.a. Trump Accounts (TAs), the 'starter' retirement accounts for children under 18 that were created under the One Big Beautiful Bill Act (OBBBA), have been available to open and fund since July 4, 2026. And during that time, they've gained modest traction: according to Treasury Department estimates, around 7–8 million children have had accounts opened on their behalf. This early 'success' is due in large part to the Federal government's $1,000 'pilot' contribution made to children born from 2025–2028, as well as to 'qualified general contributions' from charitable organizations such as the Dell Foundation's contribution of $250 for children under 10 years old in ZIP codes with median household incomes under $150,000. However, there are approximately 70 million U.S. children under 18, meaning that until recently even with these incentives only around 10% of the children eligible to have had a Trump Account opened on their behalf actually had one.

Under new regulations issued by the Treasury Department in late September, however, every U.S. child who is eligible for a TA (i.e., who has a Social Security Number and has not yet reached the year that they turn 18) has now had one automatically opened on their behalf. This means that all eligible children will now be able to receive general contributions from charitable organizations for which they are qualified, which they wouldn't have gotten if they didn't have a TA open in their name (although those contributions generally have age and geographical restrictions, so not everyone with a TA will actually receive them).

Interestingly, though, even children who haven't received any type of contribution will also have accounts opened on their behalf – even if their parents or guardians had already decided not to open one – and there's no ability to opt out or close the account if it isn't needed or wanted! However, parents and guardians will need to go through a process of 'claiming' their children's auto-enrolled account and verifying their identity in order to assume control over it and make additional contributions. Accounts that go unclaimed will either be closed in the year their beneficiary turns 18 (if there are no funds in it) or will stay open and be rolled into an IRA when claimed (if it does have funds). Which means that it's a good idea for parents or guardians of children with auto-enrolled accounts to claim the account on their children's behalf – even if they don't plan on ever funding it – to avoid it being improperly claimed by someone else in cases of identity theft (or simply lost with potential funds inside that the beneficiary could eventually use).

In addition to the auto-enrollment rules, the new Treasury regulations also create the ability for donors of qualified general contributions to do so in the form of individual stocks, which would then be held in recipients' TAs for a minimum of five years – despite the text of the law that restricts TAs to holding only 'eligible investments' of low-fee U.S. equity index mutual funds or ETFs. In other words, TAs are not only now allowed to own individual stocks, they're required to hold them (with no ability to decline the contribution or sell the stock for five years) if they happen to be included in a group of accounts that a donor decides to make a qualified general contribution to.

Although this new rule might incentivize more donors to make large-scale in-kind contributions to TAs (since the net worth of many wealthy founders and shareholders consists mainly of company stock, which they may be restricted from selling in large blocks), it also introduces new risks for TA owners who will be subject to the greater volatility of single stocks (and who will have no ability to choose the stocks they invest in, or to sell those they don't want!). Notably, however, accounts that receive individual or employer contributions, as well as the $1,000 Federal pilot contribution, will still be required to invest those contributions into eligible investments, so the effects of single-stock qualified general contributions will be smaller for those who receive other types of contributions to TAs.

The key point is that, with the rules and processes around Trump Accounts continuing to evolve, financial advisors can provide value by communicating the impact of the new rules to clients with minor children – particularly about the need to claim their child's auto-enrolled TA. Parents may not have much choice now about whether to open an account or accept a single-stock qualified general contribution, but advisors can provide valuable guidance on how to protect and manage the account going forward!

And if you want to go deeper on this topic, hear directly from the author on the Financial Advisor Technician podcast.

Outsourcing And Managing Client Headcount To Stay Lean As A Two-Founder, $150M Firm: #FASuccess Ep 511 With Ashlee deSteiger

October 13, 2026 07:04 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Ashlee deSteiger Podcast Featured Image FAS

Welcome everyone! Welcome to the 511th episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Ashlee deSteiger. Ashlee is the co-owner of Gunder Wealth Management, an RIA based in Birmingham, Michigan, that oversees approximately $150 million in assets under management for 100 client households.

What's unique about Ashlee, though, is how she made the decision to use an outsourcing platform for back-office services (and, later, paraplanning support) to support her goals of growing her client base while maintaining her desired lifestyle.

In this episode, we talk in-depth about how Ashlee decided to seek out a virtual assistant platform after reaching approximately 50 clients to be able to better focus on client growth and service (while freeing up mental capacity and time for higher-value tasks), why Ashlee sought a provider that not only could take on administrative tasks such as processing account paperwork but also could handle client requests (such as cash transfers) when she's out of office, and why Ashlee has decided to stick with her virtual assistant service (which she uses for 60 hours per month) rather than hire a full-time staff member for a similar cost.

We also talk about how Ashlee decided to pause new client onboarding for nine months in order to get a better handle on her firm's key performance metrics, how engaging in this exercise led Ashlee to move on from 5% of her client relationships each year (selecting clients based on both the revenue they generate and their engagement level with the firm), and how Ashlee adjusted her approach to producing (and charging for) one-time plans based on the findings of this exercise.

And be certain to listen to the end, where Ashlee shares how she's been able to generate new clients by posting graphics on Instagram (as it makes her top-of-mind for personal connections when they decide it's time to work with a financial planner), how Ashlee has balanced her approach to building a business with that of her business partner and husband, and how Ashlee has ultimately found success by creating a business that gives her the freedom to be able to work around her life instead of asking her family to build around her work.

So, whether you're interested in learning about outsourcing back-office tasks to remain a lean, profitable business, assessing KPIs to identify ways to improve a firm's efficiency, or how to run a growing firm while meeting lifestyle goals, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Ashlee deSteiger.

What Information Prospects Actually Seek When Choosing An Advisor

October 12, 2026 07:03 am 0 Comments CATEGORY: Marketing, Research

A crucial part of marketing is, put simply, doing more of what works and less of what doesn't work. But how can advisors know what is effective? Many advisors look to their prospect calls for the answers: who shows up, and what do they ask about? This is a helpful starting point, but it may provide an incomplete picture – e.g., advisors may determine that since prospective clients don't ask about the advisor's CFP designation in a prospecting call, clients don't care about it. In reality, how people gather information and make decisions is more complex than that.

In this article, Senior Financial Planning Nerd Sydney Squires details how prospects actually evaluate financial planners, what information they seek, and how advisors can evaluate the effectiveness of the marketing strategies that they employ (in a way that allows visibility into 'more' prospective clients).

As a starting point, when narrowing down potential advisors, clients often have two sets of criteria. First, clients determine which traits an advisor must have and look to find all advisors who have those traits, such as a CFP designation (or similar demonstrations of expertise). Second, clients set criteria – such as location or pricing – that eliminate otherwise-viable firms as they seek to find the 'best' advisor (for them). A client's criteria will be personal – some clients may crave in-person interactions with an advisory firm, whereas others will prioritize the flexibility of remote meetings.

What various studies suggest is important, however, is that prospects are able to quickly and easily find this information. A recent marketing report indicated that even if a prospective client receives a referral from a friend, if they cannot find the information they need to assess potential fit on the advisor's website, the overwhelming majority will simply move on to another firm that does provide what they're looking for.

The good news for advisors is that most prospective clients are seeking relatively basic information, such as the advisory firm's fees (and minimums), demonstrations of the advisor's expertise (including reviews and testimonials), the nature of the advisor's investment strategies, and an overview of the discovery process. These components can be covered over the course of a few pages on a firm's website; the challenge to advisors is to ensure that this information is given in a clear, prospect-friendly manner. Advisors may consider adding some basic analytics to their website as well, which would allow them to better understand who is visiting the site, how long they're spending, and which pages they visit.

Once advisors have added this crucial information, they can then have a fuller view of the prospect's journey – as well as some added visibility into potential clients who don't reach out. Ultimately, the end goal is not to convert everyone who visits the website into a client, but rather, to ensure that prospects are receiving the right information to make informed decisions. From there, advisors can keep refining their marketing strategies to curate an experience that both attracts right-fit clients and speaks to their questions and issues – ultimately increasing the number of great, informed prospects the advisor meets!

Weekend Reading For Financial Planners (October 10–11)

October 9, 2026 02:08 pm 0 Comments CATEGORY: Weekend Reading

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that Fidelity is planning to raise its minimum asset threshold for RIAs on its platform to $100 million, with affected firms having until June 30, 2027 to reach this minimum or start the process of finding a new custodial home. While this move is already leading to competition amongst other RIA custodians to serve the (few hundred) affected firms, more broadly it demonstrates the consequences of the current RIA custodial model (where neither RIAs nor their clients pay a direct fee to the custodian but rather 'pay' through the services clients use [e.g., relatively low-rate cash sweep accounts and lending products]) and suggests that an approach with more explicit fees could potentially serve custodians, RIAs, and individual clients alike.

Also in industry news this week:

The Securities and Exchange Commission (SEC) this week released a new examination handbook that offers fresh insights into how it determines which RIAs to examine each year
The SEC also released a proposed framework for advisor custody of clients' cryptoassets, which could provide greater assurance for advisors interested in doing so

From there, we have several articles on Health Savings Accounts (HSAs):

Why having an HSA 'succession plan' can help avoid the loss of attractive tax benefits associated with these accounts
While the types of services and products eligible for reimbursement using an HSA might be broader than many clients expect, pushing the boundaries could lead to undesired penalties
How families can execute an HSA "deathbed drawdown" to get assets out of an account in a hurry and avoid negative tax repercussions when an HSA is inherited by a non-spouse individual

We also have a number of articles on the elevated interest rate environment:

Strategies for families to support children or grandchildren with the purchase of a home amidst elevated home prices and interest rates, including intra-family loans and disclaimers
A recent study finds that a significant portion of homebuyers are ending up with higher rates and mortgage costs by not shopping around (with those with higher income and credit scores particularly prone to do so)
An in-depth look into how financial advisors can support clients deciding whether to pay points to receive a lower interest rate on their mortgage

We wrap up with three final articles, all about wealth:

Recent data indicate that the wealth of the top 0.1% of households has diverged from that of those in the next wealth bracket, creating a subgroup of astronomically wealthy households
While the wealthiest households in the United States have seen their net worth soar during the past decade, those further down the wealth spectrum (including those in younger generations) have seen gains as well (perhaps opening new opportunities for financial advisors)
How the difference between absolute and relative wealth (and the relationship between income and wellbeing) can be instructive at a time when certain individuals have seen their wealth explode

Enjoy the 'light' reading!