Weekend Reading For Financial Planners (November 29–30)

Schwab To End Hiatus Of ETF Platform Fees, Creating Potential Friction Via Higher Costs To RIAs It Custodies

(Oisin Breen | RIABiz)

A major development in the world of investing over the past several years has been the elimination of ticket charges for trades, reducing the costs involved in building or rebalancing a portfolio. While this has been a boon to investors, it has also reduced revenues coming into custodial platforms, which saw revenue reductions from both ticket charges and pay-to-play shelf-space agreements (under which the fund sponsors would pay the custodian a fee to be avoid ticket charges via its no-transaction-fee platform). This also came at a time when many financial advisors have moved from (often higher-fee) mutual funds to relatively lower-fee ETFs, further dampening the income of custodians who offer their own mutual funds (or participate in the revenue of third-party funds via 12b-1 and sub-TA fees).

Amidst this backdrop, reports indicate that Charles Schwab (the largest RIA custodian by assets) is planning to introduce ETF platform fees as soon as early 2026, with the custodian expected to charge funds 15% of their ETF fee revenues or have them face a ticket charge of about $100 (this would follow a similar move last year by Fidelity [the number two RIA custodian by assets], which charged fund sponsors approximately 15% of their management fee).

While aimed directly at the asset managers whose funds appear on Schwab's platform (at a time when more asset managers are now converting from mutual funds to ETFs or issuing ETF share classes of their mutual funds), such a move by Schwab could have secondary effects on RIAs.

First, certain fund sponsors may simply refuse to pay the new fees, at which point RIAs may see $100 ticket charges for clients going into those ETFs, forcing them to re-evaluate whether to continue using those funds in client portfolios or switch to a different provider (which may be difficult if there are embedded gains for existing clinets). And notably, popular providers like Vanguard have long refused to pay for shelf space on fund marketplaces, raising the question of whether RIAs en masse would actually push back on Schwab if $100 ticket charges are applied widely to Vanguard ETFs. Alternatively, if ETF providers do decide to pay Schwab's (and Fidelity's) fees, they may be forced to pass along the additional costs to investors in the form of higher expense ratios in those ETFs, effectively raising the cost of ETFs in the aggregate. Which ultimately, if other issuers also increase their expense ratios, could make the custodians' own funds appear more attractive (as they won't be paying a fee to themselves!), effectively steering more assets to Schwab's (and Fidelity's) own ETFs by lifting the costs on their competitors via the custody platform.

Ultimately, the key point is that while investors have benefited from the dramatic reduction in ticket charges and fund fees and advisors continue to receive "free" custodial services, custodians do need to generate revenues and appear to be looking for alternative avenues beyond its current sources (primarily net interest revenue earned on investor cash held on the platform, which has declined in recent years). Though perhaps an alternative solution for the custodians could be an "upside-down" model, where the custodian charges a direct basis-point fee to financial advisor clients, and then either waives ticket charges altogether or "refunds" them for the activity-based revenue they generate for the platform (which could better-aligned incentives for the custodians, advisors on their platform, and their clients)?

Trump DoL To Abandon Biden-Era Fiduciary Rule Defense, Though New Rule On The Horizon

(Melanie Waddell | ThinkAdvisor)

The Biden-Era Department of Labor (DoL) last year released the final version of its latest effort to lift standards for retirement-related advice, dubbed the "Retirement Security Rule" (aka the Fiduciary Rule 2.0), which was set to begin taking effect in late September and (again) attempted to reset the line of what constitutes a relationship of trust and confidence between advisors and their clients regarding retirement investments and when a higher (fiduciary) standard should apply to recommendations being provided to retirement plan participants, with a particular focus on those not already subject to an RIA's fiduciary obligation to clients (i.e., brokers and especially insurance/annuity agents).

At the same time (and not unexpectedly, given the product distribution industry's successful challenge to a previous iteration of the fiduciary rule), the Retirement Security Rule quickly came under legal fire, with groups arguing that it violates the U.S. Congress' intent in passing ERISA and that the DoL overstepped its authority in adopting it. Later in the year, two Federal district courts effectively halted the rule from taking effect, with two cases applying to the halt consolidated in the U.S. Court of Appeals for the 5^th Circuit. While the Biden administration had defended the rule, the change in administration meant that the Trump DoL would have to decide whether to continue to do so.

After requesting multiple extensions throughout 2025, the DoL this week filed a motion to dismiss its appeal, effectively signaling the end of the line for the Retirement Security Rule. Nonetheless, DoL plans to issue a new related rule in May, 2026, according to its regulatory flexibility agenda, which could include rules to address fiduciary advice regarding rollovers. Notably, given the similar experience of the first proposed iteration of a "Fiduciary Rule" (which was proposed under the Obama administration before ultimately being vacated by the Fifth Circuit Court of Appeals in 2018 and eventually being resurrected and adopted in a more permissive form during the first Trump administration [e.g., allowing broker-dealers to receive commission compensation for giving clients advice involving plans governed by ERISA, as long as the broker-dealer otherwise acts in the client's best interest when giving that advice]), it's possible that DoL's new proposal could be more favorable to the product sales industry than the Retirement Security Rule.

In the end, the changes to the various fiduciary rules brought on by legal challenges and court rulings have likely sowed confusion not only for participants in the financial advice industry (who have to keep up with whether certain rules are or are not in force) but also for consumers, who are unlikely to keep abreast of the details of the proposed fiduciary rules and might not know whether and when the financial professional they are working with is bound to put the consumers' interest first?

How Tiny Shifts In Advisor Phrasing Can Impact Client Decision Making: Report

(Matt Sommer | Financial Planning)

Given that a financial advisor might spend significant time analyzing a client's financial situation and developing recommendations, it can be frustrating when the client pushes back on them. However, a recent report suggests that the level of acceptance or pushback an advisor receives could be significantly impacted by the phrasing they use when discussing the results of planning analyses and their recommendations.

Janus Henderson Investors studied 1,504 affluent and high-net-worth investors aged 50 or older, randomly showing them one of two versions of a question covering three topics. First, the survey presented investors with two identical portfolios designed to generate 4% annual cash flow in retirement; a difference though was whether the cash flow was said to be derived from selling appreciated shares or from dividends. Notably, respondents reported significantly higher satisfaction with the latter presentation, confirming the idea that clients view income differently depending on its source (and perhaps suggesting that advisors taking a total-return approach might frame this strategy by emphasizing that the portfolio is designed to generate a steady 4% income stream, "much like regular dividends").

The study also looked at the communication of Monte Carlo analysis, finding that respondents showed increase comfort when they were presented as a probability of needing spending adjustments rather than probability of success or failure (with "adjustments" evoking a sense of control for the client and "failure" generating visions of running out of money in retirement). Finally, the survey framed the decision of whether to delay claiming Social Security benefits as either earning an additional 8% benefit for each year of waiting or losing 8% per year by not delaying, finding that those who were given the 'losing 8%' language were more likely to indicate interest in delaying.

In sum, a client's propensity to accept a particular advisor recommendation is not necessarily just a matter of the content of the recommendation itself, but also how it is framed and communicated. Which suggests that a thoughtful approach (that perhaps incorporates knowledge of the client's preferences and risk tolerance) could lead to better congruence between advisors and their clients and, ultimately, greater client satisfaction (and retention?) over time.

What Role Does Gold Serve In An Investment Portfolio?

(Nick Maggiulli | Of Dollars And Data)

When constructing an investment portfolio an investor or financial advisor might wonder whether an allocation to gold is appropriate. While the metal has held value in the eyes of individuals around the world since ancient times, it could be harder for investors to evaluate given that it doesn't produce a stream of income (e.g., the profits of an individual company supporting its stock price or bond payments).

One potential use for gold in a portfolio could be to serve as a hedge against inflation. While it has shown the ability to do so over longer timeframes, it has underperformed other asset classes (including equities and REITs) in recent inflationary periods (e.g., the median real return for gold during periods between 1972 and 2021 where inflation exceeded 4% was -1.4%, compared to 5.6% for REITs and 0.8% for the S&P 500), suggesting that some investors might be disappointed in its short-term performance during a future bout of inflation. Other investors might allocate to gold given its potential for price appreciation (particularly given the large run-ups the metal saw in the 1970s and has experienced in the 2020s). A downside, though, is that gold has had periods of relatively poor performance extending a decade or longer, which could be frustrating to clients (who might wonder whether they should reallocate to a 'hotter' asset).

Gold does, however, appear to be an effective portfolio diversifier, with research from asset manager State Street (which runs one of the major Gold ETFs) finding that between 2005 and 2025, adding a 2% to 10% allocation to gold within the broader global multi-asset market portfolio led to increased portfolio returns, reduced volatility, and shallower drawdowns. Which suggests that gold's role might best be viewed as a part of a larger portfolio rather than in isolation (which could help clients gain the potential diversification benefits gold could provide while avoiding the temptation to trade in and out of it during periods of relative over- or under-performance compared to other assets?).

A Tale Of Gold In 9 Charts

(Harry Mamaysky | QuantStreet Capital)

Gold has been a hot commodity this year, with its price rising more than 50% so far in 2025, easily besting the broad stock market and many other assets. A key question, though, for advisors and investors is what has caused this dramatic rise and whether gold's strong performance is likely to continue into the future.

One key factor in gold's rise appears to increased interest both from retail investors and from global central banks. For the former, the introduction of investor-friendly ETFs (that allow consumers to invest in gold without having to take physical possession of it) has made it much easier and less expensive to do so, with the two largest ETFs seeing inflows that outpace the price of gold itself. Thus, given the relative inelasticity of the supply of gold, the price of gold has risen alongside greater demand.

However, this raises the question of whether this demand is likely to continue. Mamaysky (who has allocated to gold across portfolios he manages) suggests that investors (including central banks) appear to be questioning the U.S. dollar's status as a reserve currency and are moving towards gold instead (notably, the runup in the price of gold has come alongside a weakening of the dollar). Another factor could be increased perceptions of geopolitical uncertainty, with investors moving towards gold as a safe-haven asset. That said, either or both of these trends could reverse and lead to a decline in gold's price from recent peaks.

Altogether, while macroeconomic and geopolitical factors (in addition to the increased ease of investing in gold) appear to have made it more attractive to investors in recent years, advisors might also consider longer-term factors that could influence the potential value of gold in client portfolios (from its long-term underperformance compared to the stock market on the one hand to its ability to serve as a diversifying asset on the other, among potential factors).

Understanding Gold (And Whether It's Overvalued Today)

(Claude Erb and Campbell Harvey | SSRN)

Gold has served as a store of value and medium of exchange for centuries (though the latter use isn't particularly common today!). In the modern era, investors have had a variety of motivations for investing in gold, from serving as an inflation hedge to serving as a safe-haven asset to seeking price appreciation.

Looking first at inflation, the authors find that while gold is not a particularly effective inflation hedge in the short run, it has held its value over the long run (with payments for goods and services thousands of years ago demonstrating remarkable similarity to the value of gold today). Nonetheless, while gold holds its value in inflation-adjusted terms over the long run, like other inflation hedges it comes at the cost of greater appreciation (with the authors finding that gold has an approximately zero long-run real return).

Of course, gold has demonstrated volatility (both upward and downward) in the shorter run, sometimes enticing investors into (or driving them out of) the asset. Looking at the current price of gold, the authors find that it is overvalued in historical terms (a situation which has previously led to periods of drawdowns), though they note that it has benefited from innovation in the form of Gold ETFs, which appear to have drawn in capital from investors who wanted to invest in gold but were deterred by the challenges of purchasing and holding physical bullion. A key question, then, is whether the introduction of these ETFs and other possible structural drivers (e.g., the potential for regulator to allow commercial banks to count gold as a high-quality liquid asset) could mean that "this time is different" and gold remains at elevated valuations for an extended period (or whether it will revert to the longer-run price trend).

In the end, while the runup in the price of gold over the past several years (and in 2025 in particular) might have piqued the interest of many clients, advisors can play a valuable role in educating them about gold's long run performance characteristics (both its upside as a diversifier and its downside in terms of period of extended drawdowns) and working together to decide whether a longer-term allocation is appropriate (whether or not gold's current hot run continues).

The Why And How Behind A Financial Planning Client Service Calendar

(Charesse Spiller | Level Best)

Over time, a financial advisory firm might find that it is performing an ever-expanding list of services for a growing client base with no set schedule for when these services are completed (leading to significant task-switching over the course of the year). Given the stress that such an approach could cause (in addition to lost time that could be used to serve more clients), creating a client service calendar could help a firm better organize its services for its ideal target client and to create a more standardized client experience.

To start, a firm can ask itself two questions: what it does for clients (i.e., a list of services that are provided to clients in each of its segments [if it segments clients]) and who it serves (i.e., creating an ideal client persona in order to tailor services to this avatar). This exercise can have the added benefit of identifying services that might be time-intensive but less relevant to the ideal client (as Kitces Research has found that offering an 'extensive' number of services can hurt a firm's profitability). Next, when creating the service calendar itself, the firm can go beyond the 'basics' (e.g., regular client meetings) to include the factors or services that make it unique, whether it's extensive tax planning for business-owner clients or advanced distribution planning for retired clients. In addition to behind-the-scenes work performed by the firm (e.g., portfolio reviews), the calendar can also identify the 'touchpoints' the firm will have with its clients throughout the year (e.g., client social events, webinars) so that staff and clients alike know what to expect and when to expect it (though the firm might keep any surprise 'wow' factors they choose to offer clients internal).

In sum, a client service calendar can keep a financial advisory firm's stakeholders (from advisors and support staff and clients) on the same page in terms of the services being offered and the schedule for doing so, which can level-set expectations and ensure that services are delivered on time and as efficiently as possible!

Using A Client Service Calendar To Win Over Prospects

(Stephen Alred | XY Planning Network Blog)

Financial advisory firms often use client service calendars as a tool to show current clients (and interested regulators) the services they provide (both 'shadow work' performed behind the scenes as well as meetings and other touchpoints that they can 'see') on an ongoing basis in return for the fees they receive.

Notably, though, service calendars can also be effective tools to use with prospects to show the services they can expect to receive over an initial period (e.g., six months or perhaps the first year) working with the firm. By customizing this calendar to the firm's ideal client persona, advisors can show how they provide the key services needed to solve their common 'pain points' and differentiate themselves from more generalist firms who might not have specialized expertise in these areas (it could also help clients who don't fit this persona to self-select out, saving the advisor time serving a client with needs outside of their area of expertise). Such a service calendar can help overcome fee hesitance as well by demonstrating the extent of services being offered during this initial period (this could also impress clients who are dissatisfied with the level of service provided by their current advisor). Internally, such a calendar can make CRM and other workflows easier to set up and ensure new clients receive a consistent level of service.

In the end, client service calendars can be effective tools firms can use with both current and prospective clients (as well as internally with firm staff) to demonstrate the services provided throughout the year, potentially attracting more right-fit clients and retaining them for the long run!

Real-World Examples Of Client Service Calendars That Demonstrate Ongoing Advisor Value

(Nerd's Eye View)

While it can be easy for financial advisors to recognize the wide range of ways they add value for clients throughout the year, clients themselves might not be aware of what their advisors do for them behind the scenes outside of their annual meetings (e.g., rebalancing their investment accounts or reviewing their insurance policies). Without knowledge of this "shadow work", clients might not recognize the full breadth of responsibilities their advisor (and the firm's back-office staff) are handling on their behalf to justify their fee.

One of the ways advisory firms can help solve this dilemma is to implement a client service calendar, which outlines key services being provided to clients during each month of the year. This not only gives clients a better idea of the actual work involved in financial planning that goes on outside of meetings but also helps them understand when the work happens during the year. Additionally, client service calendars can help manage client expectations while allowing advisors to adhere to their preferred service cadence (recognizing that some client issues will likely need to be handled on an ad hoc basis). Furthermore, by outlining the actual scope of work the advisor performs for clients, client service calendars can be helpful when it comes to dealing with regulators, who may need to assess the specific services provided by advisors to ensure that these services justify client fees.

When creating a client service calendar, advisory firms have many styles to choose from to meet their specific needs. For example, firms can opt for a monthly, bi-monthly, or even daily calendar, depending on what they want to display for their clients. And client service calendars can be implemented in a variety of ways, from a single-page calendar that serves as a useful handout during prospect and client meetings to a daily calendar with important dates that clients actually want to hang on their refrigerators and reminds them of the value their advisor is providing!

Once an advisory firm identifies what they want its service calendar to do (e.g., demonstrate ongoing value and serve as a client engagement tool) and chooses an appropriate style that supports its calendar's function, it can then consider how to actually create its client service calendar by deciding what to include in the calendar and which tools they want to use to produce the calendar. These decisions will depend on several factors, from the type of calendar and the amount of detail included, to whether the calendar is meant to be used as an in-meeting resource or to be kept by the client for their regular reference. And with a variety of technology tools and outsourced solutions available to help them create and implement their client service calendar, advisory firms can easily select the option that best meets their needs.

Ultimately, the key point is that client service calendars not only can allow firms to better organize and display their service offerings but can also show clients (and regulators) the full range of services being provided throughout the year. And by clarifying when planning services will be offered and when events relevant to clients will take place, advisory firm owners make the financial planning experience more tangible and create structure in their processes, all while giving advisors time to go deeper in serving their clients!

Top Ideas For Financial Advisors Searching For The Perfect Client Holiday Gift

(Gregg Greenberg | InvestmentNews)

The end of the year can be a busy time for financial advisors, as they complete end-of-year tax planning and other tasks for clients and (hopefully) take some well-deserved time off for themselves. In addition, many advisors will send gifts to clients around the holiday season as a way to express their appreciation for their continued relationship. However, the payoff for such gifts can vary widely and could make advisors reconsider the hard-dollar and time costs involved in this endeavor.

A common client gift is a piece of 'swag' (e.g., a shirt, hat, or umbrella) with the advisory firm's logo. However, given that clients have a wide range of preferences when it comes to clothing and accessories, tailoring these gifts to different client groups could lead to greater appreciation of them (e.g., while a working client might appreciate an insulated coffee mug that fits in their car cupholder for their commute, a client who recently retired might enjoy monogrammed luggage tags they can use during their retirement travels). Advisors could also consider personal touches with other gift types as well, for example by tracking a client's food or hobby preferences (perhaps when they're mentioned during an annual meeting), as getting a tin of one's favorite cookie is preferable to getting a type that might cause an allergic reaction! Some other advisors might avoid sending gifts altogether at this time of year (perhaps sending a personal note of appreciation instead) and instead using their gift budget during another time of year when the gifts might stand out more.

Altogether, while the end of the year is the 'season of giving', the impact a gift has will often depend on the thoughtfulness put in on the part of an advisor. Which perhaps suggests that the most effective gifts (in terms of building client loyalty) might not be those that are the most expensive (notably, pricey gifts could run afoul of certain regulations as well) but rather those that show that the advisor has been listening closely to the client throughout the year.

When A Black Friday 'Sale' Isn't Really A Deal

(Ryan Ermey | CNBC Make It)

Americans love shopping and like finding deals even more. Perhaps the greatest show of this behavior is on 'Black Friday' (i.e., the day after Thanksgiving), when retailers advertise major discounts and consumers flock to stores (or, in recent years, do so from their computers rather than lining up at 5am!) to pick up items for themselves or as presents for others.

A key question, though, is whether consumers really are getting major deals when they shop on Black Friday (or other 'sale' periods during the holiday season). To investigate, WalletHub compared pre-Black Friday prices to actual "sale" prices on a broad selection of items, 36% of items offered no savings compared to how they were priced between October 27th and November 17th. At the same time, those items that were truly discounted had an average markdown of approximately 24%, offering potential savings (particularly on items that a consumer might have needed anyway).

With this in mind, deal-hunting shoppers (who are willing to dedicate some time to the endeavor) might check available price-tracking tools (e.g., CamelCamelCamel for Amazon purchases) to see whether a 'deal' represents an actual discount or whether it's a commonly offered price. Also worth checking (particularly for big-ticket items like televisions) is whether a particular item being offered is a standard model or possibly a stripped-down version with more basic features specially designed for Black Friday sales.

In the end, 'Black Friday' is as much a cultural phenomenon as it is an opportunity to save on purchases or gifts. But for shoppers who are willing to do a little homework on prices (and who won't be tempted to buy more than they would have otherwise), it could be an opportunity to score some end-of-year savings (which could be put towards a retirement savings account or 529 plan contribution?).

Why Using A Credit Card Could Be Getting More Complicated

(Imani Moise | The Wall Street Journal)

When making a purchase at a store or online, many consumers won't hesitate to pull out a credit card, which offers greater convenience and security than cash as well as the possibility for lucrative travel or other rewards (at least if the user pays their credit card bill off in full each month). And while some consumers might have a single card they use for all purchases, others might rotate amongst different cards to maximize the rewards they get from a particular type of purchase (e.g., using one card for groceries and another for gas).

The decision of which card to use for a particular purchase might be getting more complicated, however, if a recent settlement between payment processors Visa and Mastercard and merchants regarding credit card acceptance goes into force. Under the settlement, merchants will no longer be required to accept all cards of a particular type (e.g., all Visa cards) and could instead choose to reject certain types of cards within a network, likely those that force merchants to pay a larger interchange fee for acceptance (which also tend to be those offering consumers greater rewards or perks). Alternatively, some retailers might take an alternative approach of adding surcharges for using certain cards (again, likely higher-end rewards cards). Notably, merchants have long been able to only accept cards within a particular network, but many have hesitated to do so given the potential to alienate consumers with other cards (exceptions include Costco, which only accepts Visa cards), so it remains to be seen how willing companies will be to reject certain card types or add on surcharges (also, the settlement requires court approval and could come under fire from merchant groups who want more concessions in what's become a 20-year battle).

In sum, the relatively seamless process of using a credit card for a particular purchase might be getting more complicated in the near future, whether in terms of understanding which card is accepted by a particular merchant or in paying extra to use a particular card (though, for those who pay close attention to these aspects of card use, it appears unlikely that credit card annual fees or rewards earning will be significantly impacted).

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We hope you enjoyed the reading! Please leave a comment below to share your thoughts, or send an email to [email protected] to suggest any articles you think would be a good fit for a future column!

In the meantime, if you're interested in more news and information regarding advisor technology, we'd highly recommend checking out Craig Iskowitz's "WealthTech Today" blog.