Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that the Investment Advisers Association has become the latest industry organization to push back against the SEC’s guidance limiting the use of the term “fiduciary” on Form CRS, joining a growing number of voices attesting that RIAs should be able to highlight the differences between the standards of care required of them with respect to their entire advisor-client relationship, versus Reg BI’s standard of care for broker-dealers that is limited to just the moment the broker makes the recommendation (rather than the structure of the broker-dealer itself).
Also in industry news this week:
- In response to the SEC’s proposed regulations for RIAs to address cybersecurity threats, industry advocates have focused on the proposed requirement to report incidents to the SEC within 48 hours, a rule that could impede advisors’ ability to respond to threats adequately while also rushing to meet the reporting deadline, while highlighting that smaller RIAs just don’t have the resources to respond in the same way that large firms do.
- The FPA’s Virtual Externship program is open for enrollment for its third year, offering experiential training at scale for newer advisors (and exposure to a diverse range of firms and planning techniques) to give those with classroom knowledge opportunities to see how different advisors “do” financial planning
From there, we have several articles on how advisors are approaching the decision to retire (or not):
- At a time when the ‘Great Resignation’ is making headlines, why many advisors are choosing to continue working well into their 70s and 80s
- The steps advisory firm owners can take to prevent ‘seller’s remorse’ when they sell their firms by vetting more than just the price of the offers
- How one firm navigated an internal succession and the lessons learned from guiding clients through the transition
We also have a number of articles on taxes:
- How advisors can add value by reviewing clients’ tax returns (and gain insights about the client’s behavior and values that might not have been revealed in earlier conversations)
- How owners of highly appreciated artwork have taken advantage of a tax-planning strategy of donating ‘fractional’ shares of art, allowing them to keep the art for a part of the year while enjoying the tax deduction for the donated share
- Why moving to a state with lower income tax rates can actually result in higher costs of living because of factors like property taxes and housing costs (and why financial aspects, including taxes, should make up only part of the reason for moving – or not – to another state)
We wrap up with three final articles, all about personal development:
- Why the most important and often hardest step to achieving a goal, whether it is running a marathon or starting an advisory firm, is just getting started, as habits are far easier to maintain than to begin
- How a lifetime of recreational exercise could pay dividends for our health as we age
- Why ditching your smartphone at key moments during the day can promote personal and professional fulfillment
Enjoy the ‘light’ reading!