Nerd's Eye View blog

Weekend Reading For Financial Planners (August 30–31)

August 29, 2025 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 recent study found that the pool of wealth controlled by High-Net-Worth (HNW) individuals (with investible assets over $5 million) is expected to hit $30 trillion by 2028 alongside an increasing number of HNW households, presenting a growing opportunity for advisors to serve this group. Nonetheless, given competition among firms to do so, the report also indicates that firms are offering an increasing number of services that are valued by these clients (e.g., charitable planning and trust administration), suggesting that some firms are attempting to show how they're 'different' through their service offering (though Kitces Research data suggest they will want to ensure they are receiving commensurate compensation given the increased staffing and time often required to provide these services!).

Also in industry news this week:

An analysis indicates that SEC enforcement actions have dropped significantly over the past several months compared to the same period last year, with recent cases frequently involving investor fraud related to securities offerings and investment advisers
A survey suggests that advisory firms not only are using referrals to find new clients, but also new employees as well

From there, we have several articles on retirement planning:

A review of common client case studies shows that the devil is in the details when it comes to deciding whether to make Roth contributions and conversions
Why the value of a (partial) Roth conversion is calculated using (true) marginal tax rates that take into account factors beyond a client's current and future Federal income tax brackets
How advisors can evaluate Roth conversion analysis software to ensure it covers the full range of variables that can determine the impact of a potential conversion

We also have a number of articles on client communication:

Best practices in storytelling, which can help financial advisors build a stronger emotional connection with prospects and clients
Why summarizing clients' comments back to them can help ensure that they feel understood by their advisor and build greater trust in the process
How financial advisors can use the tools of rhetoric to market and scale their practices efficiently

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

How financial advisors can offer value for clients by helping them avoid the risks of trying to "get rich twice"
While prospects or clients who receive a financial windfall might be focused on maximizing the after-tax dollar value of the assets they've received, advisors can play a valuable role in encouraging them to consider how they actually want the money to impact their life
How building significant wealth can bring on a new set of problems to clients and how advisors are well-positioned to help them avoid potential pitfalls

Enjoy the 'light' reading!

The Risks Of AI Meeting Notetakers: Evaluating Accuracy And Data Privacy In Tools

August 27, 2025 07:02 am 0 Comments CATEGORY: Technology & Advisor FinTech

For financial advisors, maintaining accurate and comprehensive client meeting notes has long been a core – albeit time-consuming – component of effective and compliant practice management. While many advisors acknowledge the value of documenting what was discussed and agreed upon in client meetings, in reality, there is a difficult tradeoff between taking accurate notes while also staying fully present in sometimes emotional or complex conversations (or alternatively, 'brain dumping' notes after the meeting, which relies on the advisor remembering everything discussed in the meeting clearly enough to write an accurate meeting note). But with the rise of AI-powered meeting note tools, advisors may no longer need to choose between these competing priorities. Yet, even as these tools promise to transform how advisors handle meeting notes and follow-up tasks, they also introduce new risks around data privacy and output accuracy that fiduciary advisors must thoughtfully manage.

AI meeting notetakers seek to eliminate the inherent tension between focusing on client conversations and capturing detailed notes by automatically transcribing the meeting dialogue and summarizing key points and follow-up items. These tools – whether general-purpose (like Fathom, Fireflies, or Zoom's AI assistant) or industry-specific (like Jump, Finmate AI, or Zocks) – aim to generate structured, actionable records of meetings that advisors can use for compliance, follow-up, and CRM documentation. When functioning properly, these tools can (at least in theory) not only improve advisors' efficiency by automating much of the follow-up work from each meeting, but also improve the quality of advice and implementation by helping ensure that nothing slips through the cracks.

Still, these benefits come with tradeoffs. First is the risk of the AI tool inaccurately transcribing or summarizing the meeting. Although most AI tools are highly accurate in transcribing meeting dialogue (with many achieving near-perfect dictation), they can struggle in other ways. For example, unlike human notetakers, AI models generally don't detect sarcasm, emotion, or nonverbal cues – limitations that can result in critical misunderstandings, such as incorrectly recorded recommendations or missed follow-up items. Advisors must therefore be vigilant in reviewing and editing AI-generated notes to ensure accuracy and completeness, particularly when tasks are auto-generated and delegated downstream to a team. Moreover, advisors can improve AI effectiveness by using clear and unambiguous communication and confirming key decisions during meetings (both of which are best practices even when the advisor isn't relying on AI-generated meeting notes).

Data privacy and management also present risks for advisors using AI meeting note tools. Because AI tools often capture and process sensitive client information, advisors must carefully evaluate how these platforms store, share, and secure that data. Some tools offer more privacy-conscious options (like user-controlled data exports or real-time note generation that doesn't store audio) while others may ingest data from outside sources like CRMs and planning software to enhance their capabilities. Regardless of the feature set, advisors should seek client consent before using AI recording tools, especially in states that require dual-party consent for meeting recordings, and assess whether a tool's data practices align with their firm's security and compliance standards. Conducting due diligence on which data is collected and how it's used can help advisors match a tool's capabilities and data collection practices to the requirements needed for it to actually do what the advisor needs it to.

Ultimately, the emergence of AI meeting note tools reflects a broader evolution in how technology can support financial planning professionalism. These tools offer advisors – particularly solo practitioners or those without extensive support teams – a more cost-effective way to improve documentation and reduce operational friction. But like any tool, their effectiveness depends on how well they are implemented, reviewed, and integrated into an advisor's workflow. All of which means that advisors are best served with a cautiously optimistic approach toward AI notetakers, with both a clear understanding of the tools' limitations and a recognition of how they could, if used properly, raise the bar for the quality of advice they give. Because, as with all planning tools, the goal isn't just efficiency – it's about delivering better outcomes through more thoughtful, human-centered advice.

Growing From $200M To $1.4B In 5 Years By Spending 15% Of Revenue On Marketing (That Still Works): #FASuccess Ep 452 With Gabriel Shahin

August 26, 2025 07:03 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 452nd episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Gabriel Shahin. Gabriel is the CEO of Falcon Wealth Planning, an RIA based in Ontario, California, that oversees $1.4 billion in assets under management for 1,500 client households.

What's unique about Gabriel, though, is how his firm has grown from $200 million to $1.4 billion of AUM in just five years by generating 2,500 leads a month (that lead to 450 to 500 new clients onboarded annually), in part by spending approximately 15% of firm revenue on marketing each year.

In this episode, we talk in-depth about how Gabriel's firm invests the most marketing dollars in advertising on Google (which is the top source of its leads and clients) and increases the effectiveness of this spend by creating dedicated landing pages and lead magnets targeted at different search keywords, how Gabriel's firm has created educational content for its website (in written, audio, and video formats) that not only helps with search engine optimization, but also with answer engine optimization (amidst the growing popularity of AI search), and how Gabriel also has found success investing marketing dollars on a range of advisor lead-generation tools (and improves the success rate of this tactic by employing staff members who are responsible for quickly responding to new leads from these sources).

We also talk about how Gabriel's firm uses a personality-typing system to match prospects with an appropriate member of its business development team and with the advisors who will ultimately serve them when they become clients, how Gabriel employs a revenue-based compensation structure for advisors (allowing them to grow their compensation as they work with more, and wealthier, clients, with a salary floor for those starting to build their client bases), and how Gabriel ultimately views the advisors on his team as his biggest "clients" (given that they are one of the keys for the firm to be able to serve even more clients in the future).

And be certain to listen to the end, where Gabriel shares why he's willing to invest in hiring and technology spending not just based on his firm's current needs but rather where he wants the firm to be in the future, why Gabriel's firm charges an above-average fee to its clients (starting at 2% of AUM and only reaching 1% at approximately $3 million of AUM) based on the high level of service he believes his firm provides (particularly in helping clients find tax savings opportunities), and how Gabriel's growth over the past several years has come after building a team that can effectively attract and serve clients (without him personally being at the center of these initiatives), allowing him to focus on his role leading the firm into the future.

So, whether you're interested in learning about the potential return of making significant hard-dollar investments in marketing, leveraging Google and dedicated landing pages to attract prospects, or the challenges of growing AUM by a billion dollars organically in just five years, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Gabriel Shahin.

Why Teams (Not Tech) Consistently Reduce Administrative Burdens, Make Advisors Happier, And Boost Revenue (Latest From Kitces Research)

August 25, 2025 07:02 am 0 Comments CATEGORY: Planning Profession, Research

When asking financial advisors about what they love most about their jobs, common answers include the ability to help clients live their best lives, the opportunity to build lasting relationships, and the intellectual challenge of analyzing complex planning problems. One answer that rarely makes the list is administrative work, which not only feels like drudgery in itself but also takes time away from more engaging tasks. Which explains why data from the Kitces Research Study on Advisor Wellbeing show a negative correlation between weekly hours spent on administrative work and wellbeing for Senior Advisors (i.e., those with higher administrative burdens tend to report lower levels of wellbeing).

Two options available to advisors for reducing this administrative burden include investing in technology (e.g., software that can automate or expedite tasks) and/or adding team support (e.g., hiring a Client Service Associate [CSA]). However, given the costs of either solution, advisors will want assurance that such investments actually reduce their administrative load – and ideally contribute to greater wellbeing.

Perhaps counterintuitively, data from our forthcoming Kitces Research on Advisor Technology – shared here as an early preview of the full study – indicate that solo firms investing more heavily in tech tools designed for administrative work do not consistently spend less time on this work or report higher levels of wellbeing. In fact, amongst Senior Advisors surveyed, adopting additional technology applications was actually negatively correlated with wellbeing. Importantly, this isn't a warning against adopting advisor technology tools altogether; rather, Kitces Research suggests that such tools are more effective when used to improve the client experience, allowing advisors to attract and serve higher-value clients that increase the firm's revenue productivity. Put simply, when technology is applied to enhance value rather than just to chase efficiency, greater efficiency often ends up following anyway!

By contrast, the data on adding team support tell a clear and consistent story: advisors with staff to support them spend less time on administrative work and are happier for it. For example, unsupported solo Senior Advisors spend 8.6% of their working hours on administrative tasks. That figure declines to 7.4% with the first support hire (typically a CSA) and further to 5.9% with the second hire (typically an Associate Advisor). In addition to reducing the advisor's administrative burden, these hires also expand capacity to bring on new clients (and the revenue they provide). In fact, Kitces Research data show that while the median unsupported solo advisor generates $182,500 in revenue, supported solo advisors generate more than $500,000! Together, these factors likely contribute to the finding that advisor wellbeing improves with the first hire and sees another boost with the second.

Ultimately, advisors looking to reduce their administrative burden – and improve their wellbeing in the process – are more likely to see greater returns from hiring support staff than from adding efficiency-focused technology. Nevertheless, because certain advisor technology tools can enhance client service (and, in turn, help attract higher-value clients who increase revenue productivity), investments in both areas can pay off for a firm's bottom line – and the advisor's wellbeing!

Weekend Reading For Financial Planners (August 23–24)

August 22, 2025 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 recent survey of Americans who plan to hire an advisor in the next five years indicates that while referrals from friends and family remain the most common way individuals seek out a financial advisor, nearly all perform additional research on the advisor, including by seeking out online reviews and the advisor's website. When considering an advisor's reputation, top factors cited by respondents included transparency in fees and services, professional certifications and credentials, and positive online reviews on an independent website, among other areas. The survey also found broad openness amongst respondents for their advisor using Artificial Intelligence (AI)-powered tools for a variety of functions, including fraud detection and meeting notetaking, though they expressed more reservations about using AI for automated investment decisions (suggesting an opportunity for advisors to leverage their ability to relate to clients on a human level while taking advantage of some of the capabilities AI can offer).

Also in industry news this week:

A survey indicating Americans remain broadly worried about receiving their scheduled Social Security benefits suggests a valuable role for financial advisors in helping them understand the "true" state of the Social Security system and how potential legislative changes could impact their benefits and the taxes they pay
A report indicates that RIA M&A hit a fresh high in the first half of 2025 and suggests that amidst continued strong demand from buyers, the supply of selling firms will likely drive the pace of deals in the coming months

From there, we have several articles on retirement planning:

A seven-step process that can help clients estimate their expected cash flow needs in retirement more accurately than common rules of thumb
How the scheduled end of enhanced Affordable Care Act premium subsidies could increase the expenses of many early retirees and others with these health insurance policies
How reframing risk in retirement as "over- and under-spending" could help clients better understand the tradeoffs they face than a "success versus failure" framework

We also have a number of articles on marketing:

The potential value for financial advisors of having "channel focus" in marketing, going all-in on a single marketing channel rather than inconsistently focusing on several tactics
How some advisors are using Instagram to meet their target clients "where they are" on social media and to demonstrate their expertise and personalities
While many advisors focus on marketing tactics to reach potential clients around the country, both analog and digital marketing tools can allow advisors to tap into a potential client base closer to home

We wrap up with three final articles, all about health and wellness:

A recent study suggests that taking 7,000 steps each day could be a 'sweet spot' for improved health outcomes
An analysis suggests that it's never too late to get the health benefits of an active lifestyle, with benefits accruing both to those who maintain a workout regimen and those who start fresh
Six ways to build a consistent exercise routine, from finding an accountability partner to using apps that offer rewards for sticking to a workout plan

Enjoy the 'light' reading!

When Advising Clients Loses Its Spark: Burned Out, Or Bored-Out?: Kitces & Carl Ep 171

August 21, 2025 07:03 am 0 Comments CATEGORY: Kitces & Carl Podcast

After years of growth and hustle, an advisor might arrive at a stable, profitable firm with loyal clients, a thriving staff, and a healthy income – only to find that the day-to-day work has become a repetitive cycle of meetings, service tasks, and familiar conversations. The practice is no longer challenging or creative; it simply runs. And for highly driven professionals who thrive on challenge and novelty, that can feel suffocating. Over time, this feeling of stagnation can lead to burnout – or something else entirely.

In this 171st episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss the difference between being burned out and being 'bored out' – and how advisors can explore new ways to shake things up without destabilizing the business they've worked hard to build.

Burnout is often rooted in prolonged emotional and physiological exhaustion: too many demands, too little recovery. Being 'bored out', by contrast, emerges when the challenge disappears. The firm functions, clients are happy, the bills are paid… but without an imminent new goal to pursue, the advisor may feel disengaged or like their work lacks meaning. Ironically, the very success that was once the goal becomes the source of frustration: The advisor 'won', and now there's nothing left to strive for.

While these are two very different states, the root cause may be similar: a need for change. Advisors with enough revenue to slow down may still find themselves compulsively reinventing the firm. They might alter their service model, pivot to a new client base, overhaul the marketing strategy, or redesign internal processes. But constant reinvention can increase complexity, put stress on staff, and create instability for clients. Slowing the stream of new ideas and giving the firm time to catch up can be essential for everyone's wellbeing – including the advisor's.

In some cases, implementing frequent change may actually stem from the same root causes of boredom: a lack of new challenges. After years of invention, a reliable client base and familiar routines may feel limiting. Some advisors may have an impulse to completely overhaul or even sell their business – yet, while those options are available, there are often less drastic ways to regain a sense of fulfillment. Some channel their time, energy, or entrepreneurial drive into pursuits outside the firm, such as athletic challenges, philanthropic ventures, or new business endeavors. Others may choose to delegate more of the firm's operations or client work so they can focus on the parts they truly enjoy. And for advisors with a persistent creative itch, carving out a designated space to brainstorm and explore ideas – without any obligation to act – can help contain and channel that drive in a sustainable way.

Ultimately, the goal is to rekindle a sense of inspiration and autonomy. When the excitement of building wears off, it's worth pausing to consider a broader range of possibilities than just "stay and suffer" or "sell and escape". Whether the next step lies in restructuring the role, rediscovering creative ways to serve clients, or pursuing something entirely new, advisors often have more freedom and flexibility than they realize. Recognizing the difference between burnout and boredom can open the door to more thoughtful, aligned decisions – and help build not just sustainable practices, but more fulfilling careers!

OBBBA Breakout Guide: Student Loan Changes For Financial Advisors To Know – New Borrowing Limits, Parent PLUS, RAP, And Legacy IDR Plans

August 20, 2025 07:03 am 0 Comments CATEGORY: General Planning

After five years of policy shifts, paused payments, and temporary relief measures, the Federal student loan system is entering a new phase – one that's more stable, but also less generous and far more limited in its options. Before COVID, the system was complex but relatively stable. Then came years of borrower-friendly interventions, from suspended loan payments and interest freezes to sweeping (if temporary) forgiveness initiatives. Now, with the passage of the One Big Beautiful Bill Act (OBBBA), a new framework is taking shape – significantly narrowing borrowing options and increasing repayment obligations, particularly for parents and graduate students.

For financial advisors, the OBBBA represents a meaningful structural shift – especially in how much students and parents can borrow. While the past several years focused on temporary relief and evolving repayment plans for existing borrowers, the new borrowing limits will directly affect college funding strategies going forward.

Specifically, undergraduate borrowing limits remain unchanged, with a Federal loan cap of $27,000 over four years (or $31,000 for students taking longer to complete their degree). But for the first time in decades, OBBBA sets firm caps on other loan types: Parent PLUS loans will now be capped at $20,000 per child, with a $65,000 lifetime cap per student. Graduate PLUS loans will be eliminated entirely, leaving the Direct Unsubsidized Loan program as the sole source of Federal borrowing for graduate students – with pre-existing annual caps of $20,500 ($50,000 for professional degrees) and aggregate limits of $100,000 ($200,000 for professional students). The legislation also introduces a new combined lifetime borrowing cap of $257,600 across all Federal loan programs (excluding Parent PLUS loans).

In addition to new borrowing limits, the OBBBA brings major changes to student loan repayment plans. These include a balance-based Standard Repayment plan that will tie repayment terms to loan size, and a new Income-Driven Repayment (IDR) plan – the Repayment Assistance Plan (RAP) – that will become the default for many borrowers. RAP calculates monthly payments based on a progressive formula tied to Adjusted Gross Income, fully subsidizes unpaid interest (eliminating negative amortization), and offers forgiveness after 30 years of repayment. All legacy IDR plans will be phased out by July 2028.

Notably, the next few years will present an opportunity for financial advisors to provide critical student loan advice to clients transitioning between repayment plans – particularly for those whose monthly payments will change significantly under different plan options or for those who are pursuing Public Service Loan Forgiveness (PSLF). Advisors may also need to revisit college savings strategies with families as Parent PLUS loans become more restricted, which could mean exploring private lending or other alternatives where appropriate.

Ultimately, the key point is that while student loans may be entering a period of more stability, that stability comes with new complexity. Advisors who stay current on the evolving repayment rules, deadlines, legislative changes, and planning implications will be well-positioned to offer tremendous value – both to borrowers navigating repayment and to families rethinking how they'll pay for college!

Evolving Your Leadership Style And Hiring Process As The Firm Grows From 1 To 20+ Team Members: #FASuccess Ep 451 With Maggie Kulyk

August 19, 2025 07:04 am 0 Comments CATEGORY: Financial Advisor Success Podcast

Welcome everyone! Welcome to the 451st episode of the Financial Advisor Success Podcast!

My guest on today's podcast is Maggie Kulyk. Maggie is the founder of Chicory Wealth, an RIA based in Decatur, Georgia, that operates virtually and oversees $760 million in assets under management for 480 client households.

What's unique about Maggie, though, is how she overcame her initial reluctance to be a manager to build a thriving business that now has more than 20 team members with robust hiring and career development processes in place.

In this episode, we talk in-depth about how Maggie went from being a self-described "terrible" manager to leading a sizeable firm with a growing staff count in part by evolving her approach to leadership over time (including by delegating responsibilities that don't match her strengths), how Maggie's firm took a major step forward after she made a key hire whose attention to detail and focus on systems complimented Maggie's strengths in vision setting and moving quickly once decisions are made, and how Maggie has found success by having her leadership team manage the hiring process (with her only seeing applicants at the final stage) to ensure a more sober-minded analysis of candidates (given her natural enthusiasm for people she meets).

We also talk about how Maggie overcame her initial reluctance to transition her clients to other advisors on her team in part by hiring and training homegrown advisors in her firm's style (often finding them through college financial planning programs as well as the Amplified Planning Externship program), how Maggie has found success in hiring by zeroing in on her firm's mission and values (and finding aspiring advisors who are attracted to them), and how Maggie's firm has implemented a career path for new hires to advance from an associate role to a client-facing advisor to dealing with complex client situations (carefully increasing the amount of revenue they are responsible for as they move up the advisor ladder).

And be certain to listen to the end, where Maggie shares why she decided to leave a broker-dealer platform to start her own RIA not based on the potential financial benefits of such a move, but rather because of a desire to be truly fee-only and to build a brand identity centered on socially conscious investing, how Maggie has implemented an internal purchase structure to give next-generation team members a path to firm ownership (without adding risk to their personal balance sheets) and to put the firm in a strong position to thrive when she eventually decides to retire, and how Maggie has found that while personal change has been an important part of her business-building journey, she's ultimately found success by always being true to herself and her values.

So, whether you're interested in learning about leveraging your strengths (and recognizing your weaknesses) as a leader, the challenges that come with transitioning from a smaller advisory practice to a larger business, or how to build a strong team by hiring candidates who are aligned with the firm's mission and values, then we hope you enjoy this episode of the Financial Advisor Success podcast, with Maggie Kulyk.

The 3 Concerns Keeping $25M+ Families Up at Night

August 18, 2025 07:01 am 0 Comments CATEGORY: Practice Management

Many advisors focus on attracting and serving high net worth individuals and families, and with only a limited number of such clients to go around, this can be a competitive space. The higher net worth that a family has, the more that an advisory firm has to stand out in order to gain them as clients. However, advisors who can speak directly to the concerns of this client niche can give themselves a unique – and differentiating – advantage to best serve this segment of the population!

In this 'hybrid' video-based article, Michael Kitces and John Bowen, CEO and founder of CEG Worldwide and CEG Insights (formerly Spectrem Group), dive into CEG's extensive data on what ultra-high net worth (UHNW) families are really worried about and how advisors can serve this group more effectively.

The first major concern is macroeconomic risk. Nearly 80% of UHNW families worry about inflation, market volatility, and geopolitical instability. While they recognize that no advisor can control these forces themselves, most families expect proactive strategies, clear communication, and coordinated access to top-tier specialists who can help them navigate economic uncertainty. Many families seek bespoke guidance at a high level of service on topics such as alternative investments, charitable planning, and estate planning. At the same time, expectations for investment returns have moderated, with many clients content with ‘just’ 6%-8% returns on investment if their portfolio comes with strong principal protection. For advisors, the new challenge lies in clearly aligning their investment philosophy with a client’s concerns: Perhaps by maintaining a consistent strategic allocation or by making tactical adjustments, but in either case showing an awareness of what’s going on in the world and an understanding of how to manage to the current reality.

The second concern for these families centers on security and legacy. Beyond market risk, UHNW families fear threats such as litigation, divorce, and cyberattacks. Multi-generational wealth transfer raises the additional challenge of "will my heirs squander it?": More than three-quarters of UHNW families worry about wasteful heirs and want advisors to engage their children and grandchildren early to prepare them for stewardship responsibilities. At times, this may even extend to creating governance structures (sometimes formalized as family constitutions) that define decision-making and preserve values. Cybersecurity has also emerged as a priority, with many willing to pay for specialized protection, which gives advisors who can connect clients with the right services the opportunity to provide peace of mind without necessarily being cybersecurity experts themselves.

The third concern is quality of life and significance. Many in this wealth bracket are older and acutely aware that without health, wealth is less meaningful. They want access to concierge health and longevity services, along with strategies to ensure that their wealth supports a purposeful, multi-generational legacy. Advisors in this space must think less like "family CFOs" and more like general managers, orchestrating vetted specialists across legal, tax, investment, insurance, philanthropy, and wellness. Importantly, these teams don’t need to be built in-house; clients simply want a coordinated, high-caliber network that works seamlessly on their behalf.

For advisors, moving into the UHNW segment is not a matter of scaling up existing mass-affluent practices or building out more and more in-house services. Instead, it requires fewer but deeper client relationships and robust external partnerships to connect clients with a vetted team of experts to meet their needs. Serving UHNW also demands a proactive, holistic approach that addresses not just financial needs, but also family dynamics, personal security, and quality of life.

Ultimately, the reward of serving UHNW clients is both financial and professional – commanding higher fees for delivering truly differentiated value in a space where 60% of successful entrepreneurs are open to changing advisors within the next two years. Advisors willing to embrace this shift can position themselves as indispensable partners in protecting fortunes, guiding families, and helping clients live lives of lasting significance!

Weekend Reading For Financial Planners (August 16–17)

August 15, 2025 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 while a report by Microsoft finding that users of its Copilot Artificial Intelligence (AI) tool were able to successfully complete many tasks associated with financial advice (putting financial advisors in the upper tier of job functions that AI could potentially perform), a separate survey from Northwestern Mutual found that Americans continue to overwhelmingly trust human advisors over AI tools for tasks such as creating a retirement plan, suggesting that while many of the functions performed by a financial advisor could theoretically be done with the assistance of an AI tool, consumers are (at least so far) not convinced that relying on AI is a superior approach (though they did largely express support for their human advisors leveraging AI technology, suggesting that AI tools could be more of a force multiplier for advisors rather than a competitor).

Also in industry news this week:

Morningstar's latest "Mind The Gap" report finds that investors continue to frequently underperform in the total performance of the funds they invest in (due to market timing and other behaviors), suggesting a continued valuable role for advisors in helping them stay on track with their investments (even if clients don't necessarily think they're engaging in 'bad' behavior)
A recent regulatory sanction indicates that merely introducing a communications archiving tool is not sufficient for firms to remain compliant with relevant regulations and that more active oversight is necessary

From there, we have several articles on insurance planning:

Recent data indicate that property and casualty insurance premium increases continue to outpace the broader inflation rate, particularly for clients living in disaster-prone areas
The value for clients of maintaining adequate disability insurance and potential pitfalls to monitor when evaluating different types of coverage
A framework for helping clients determine the 'right' amount of insurance needed for their particular circumstances

We also have a number of articles on investment planning:

Why recent momentum for adding private market investments to workers' 401(k) options could create litigation concerns (and lead to E&O insurance hikes) for RIAs advising on business-owner clients' 401(k) plans
How the introduction of private market investments into target-date and other allocation funds could give clients exposure to these assets without actively choosing to do so
Why some advisors and investors might choose to invest in asset managers sponsoring alternative asset funds rather than buying the funds themselves

We wrap up with three final articles, all about living abroad:

Four ways for clients to retire abroad, from leveraging a "golden visa" to taking extended 90-day stays in multiple countries each year
The ups and downs of life as a "digital nomad", from the opportunities for adventure to the weight of handling the logistics of frequent moves
Key issues for advisors working with cross-border clients, including the tax implications of moving to a particular country to the logistics of banking and fund transfers while abroad

Enjoy the 'light' reading!