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Author: Adam Van Deusen

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 advisory forms working with a younger client base tend to have relatively stronger growth in assets under management and revenue over time. In addition, the researchers found that referrals from centers of influence were one of the strongest drivers of new client growth, with client referrals playing an important role as well.

Also in industry news this week:

• How Goldman Sachs’ RIA custodial platform is leveraging the resources of its parent company as it seeks to build momentum amidst a highly competitive environment among custodians
• How NASAA has changed the substance and/or scoring of the Series 63, 65, and 66 exams

From there, we have several articles on college planning:

• How the college financial aid landscape is changing this year, from a redesigned FAFSA form to new planning opportunities for grandparents
• How the newly-updated College Scorecard tool can help advisors and their clients better understand the costs and potential benefits of attending certain colleges
• How advisors can help clients decipher college financial aid letters, which can vary significantly across different schools

We also have a number of articles on investments:

• Why financial planning clients might not be clamoring for the personalization that direct indexing offers
• Why investing in today’s largest companies and holding the shares for an extended period might underperform a more dynamic index
• A study has found that advisors often invest client assets more conservatively than what their client’s risk tolerance might allow

We wrap up with 3 final articles, all about resilience:

• How a series of mental exercises can help individuals build resilience and overcome challenges they face
• Why taking ownership of the inevitable pain that comes in life can lead to greater personal resilience
• How adopting a “gift-giving” mindset can help an individual live their best life both today and into the future

Enjoy the ‘light’ reading!

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Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that while banks have been able to attract a younger and more diverse set of financial advisors compared to the rest of the industry, thanks in part to their built-in referral stream, a relative lack of independence and dated technology could lead some of their advisors to explore options with independent RIAs.

Also in industry news this week:

• How consumer concerns about the stability of the banking industry could present independent advisors with an opportunity to add value by managing client cash
• Why an advisor’s fiduciary duty can sometimes come into conflict with the best insurance options for their clients

From there, we have several articles on marketing:

• While many firms have grown in the past several years thanks to market performance and M&A, a recent study shows that the average RIA had negative organic growth during the past 5 years
• How firm owners can develop a “business development culture” throughout their firms
• The differences between client referrals and word-of-mouth marketing and how advisors can use each to attract prospective clients

We also have a number of articles on retirement:

• How retirees (and their advisors) can use “mastermind” groups to learn from and build a community with their peers
• A survey of what people tend to care about less as they age, from trying to impress others to prioritizing their career over other interests
• How the choice of where to live in retirement can impact a retiree’s longevity

We wrap up with 3 final articles, all about creativity:

• How the most effective companies encourage innovative ideas among their employees
• Why better sleep might be the ultimate ‘hack’ for achieving better productivity and creativity
• Why persistence can be the key to turning a good idea into a great one

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Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news of a recent survey indicating that investors overwhelmingly believe that Artificial Intelligence (AI) will help financial advisors better serve their clients and would like to work with an advisor who leverages AI tools. And despite some industry observers’ concerns that AI tools could eventually replace human advisors, a strong majority of those surveyed said they do not expect AI to replace advice from humans. And amid this backdrop, several AdvisorTech tools have added AI capabilities that could further streamline advisory firms’ middle- and back-office tasks and processes.

Also in industry news this week:

• CFP Board adopted a set of revised procedural rules, including establishing the ability to conduct “informal inquiries” in response to complaints to better identify potential wrongdoing
• A patent that allowed Vanguard to launch ETFs as share classes of its existing mutual funds expired this week, but it is unclear whether other asset managers will take advantage of the new opportunity

From there, we have several articles on practice management:

• What actions advisory firm owners can take when they find they have too much work on their plate
• How advisors can explore different paths for their firms once they have been in a robust client pipeline
• How one advisory firm owner made changes to ensure her business serves her rather than the other way around

We also have a number of articles on cash flow and wealth:

• One potential framework to describe levels of wealth, from not stressing about debt to not worrying how much is spent on a vacation
• Why having “FU” money is not necessarily the key to freedom and happiness
• While it has long been assumed that buying ‘experiences’ typically make individuals happier than purchasing ‘things’, recent research suggests a more nuanced view might be warranted

We wrap up with 3 final articles, all about gender and money:

• Why men and women often have different views of what retirement means to them
• Why telling women to act more confidently is unlikely to improve the gender pay gap, and what employers can do to even the playing field
• While prior research has found that women report poorer mental health than men, a new study suggests the reality might be more nuanced

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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 clients of advisors providing comprehensive planning services are significantly more satisfied than those receiving a lower tier of service. The study also highlighted the importance of advisors taking the time to build trust with clients and to understand a client’s goals and needs, as this can not only differentiate an advisor from those providing purely transactional investment advice, but also could promote client retention, even in years of poor market performance.

Also in industry news this week:

• Why industry groups representing investment advisers and others have blasted an SEC proposal that would significantly expand its Custody Rule
• A new study suggests that organic client growth and profit margins are the key factors driving RIA valuations, with the firm’s affiliation model having little to no impact

From there, we have several articles on cash flow:

• How the inflation-adjusted ‘net price’ that parents and students pay for college has remained largely unchanged in the past 15 years despite increases in ‘sticker prices’ that well exceed the broader inflation rate
• Why high-net-worth clients might be interested not only in advice for how to make charitable contributions in the most tax-friendly manner, but also in finding appropriate charities to give to that meet their goals
• How a recent study suggests a causal connection between married couples who use a joint bank account and increased relationship happiness

We also have a number of articles on practice management:

• How 1 firm measures its client service standards to ensure it is providing a high-quality client experience
• How owners of growing firms can increase the size of their client base without sacrificing service levels or working endless hours
• Why adding strategic tax planning services could be the key to spurring client growth, and how firms can implement the new service offering

We wrap up with 3 final articles, all about health and wellness:

• How the consumption of ultra-processed foods might lead to a variety of maladies
• Why the United States trails peer countries in terms of life expectancy
• Why taking a ‘mental health day’ might only be a temporary fix for broader issues related to burnout in the workplace and what employers can do to support their employees

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week’s edition kicks off with the news that the House Financial Services Committee unanimously passed a bill that would direct the SEC to conduct a study and carry out a rulemaking on the definition of a "small entity" to reduce the compliance burden on small businesses, presumably including RIAs.

Also in industry news this week:

• Legislation working its way through Congress would allow for electronic delivery of documents to clients of advisors and other financial services firms by default, though it has been met with some opposition
• While RIAs have outpaced wirehouses in terms of client asset growth and headcount, industry consolidation has led to a decline in the number of RIAs, according to a study from Cerulli Associates

From there, we have several articles on practice management:

• Why serving 'non-ideal' clients is seen as the top productivity challenge for advisors, according to one survey
• How putting in the extra time to practice ahead of client meetings or seminars can pay off for advisors
• Why stressed-out firm owners might consider downsizing their client base rather than selling their firm

We also have a number of articles on investments:

• While tax-adjusting a client’s portfolio can be a valuable service, doing so accurately can be challenging
• The potential benefits and risks of investing in funds that engage in securities lending
• Why holding on to stocks, rather than moving to cash, could be a smart move, even if a recession is expected to occur

We wrap up with 3 final articles, all about technology:

• Why LinkedIn could be a valuable 'one-stop shop' for social media users
• How ChatGPT and other AI tools have come under fire for using published content on the Internet to train their models
• How 'passkey' technology introduced by Google and other web services could lead to the end of passwords

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Enjoy the current installment of "Weekend Reading For Financial Planners" — this week’s edition kicks off with the news that following previous guidance regarding obligations under Regulation Best Interest (Reg BI) regarding account recommendations and conflicts of interest, the SEC released a new bulletin this week focusing on the duty to care. The guidance highlights the importance of brokers considering investment alternatives for their customers as well as taking costs into account when making recommendations that are in their best interests, and the need to do so proactively rather than as a 'box-checking' exercise after making a recommendation — a message from the regulator that could be significant for fiduciary investment advisers as well.

Also in industry news this week:

• A U.S. House of Representatives committee this week approved legislation that would expand the pool of individuals who would qualify as accredited investors able to access certain private offerings
• Proposed bipartisan legislation would allow individuals to use funds in 529 plans for expenses associated with acquiring or maintaining postsecondary credentials, which would include the CFP certification

From there, we have several articles on advisor marketing:

• How advisors can use Google reviews to maximize their search engine optimization and increase their visibility online
• The key features to include on an advisory firm's website to demonstrate 'social proof' to prospective clients
• How advisors can use ChatGPT to spend less time on content marketing

We also have a number of articles on retirement planning:

• Statistics on where American retirees currently stand, from their average net worth to how they spend each hour of the day
• Why 1 FIRE pioneer who retired in his 30s is planning to return to the workforce
• How many business owners report that they never plan to retire, and the planning opportunities for advisors working with these clients

We wrap up with 3 final articles, all about achieving goals:

• Why 'showing up' is often the most important part of achieving a goal
• 5 key factors that can increase the chances that a goal will be completed
• Why giving up on a goal can sometimes be a good choice, and how to objectively make the decision to do so

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that in a settlement with the SEC, robo-advisor platform Betterment agreed to pay a $9 million penalty for allegedly misstating the frequency that its automated tax-loss harvesting system was scanning some client accounts between 2016 and 2019, highlighting the importance of ensuring that marketing messages and services provided match, not only for robo-advisors, but for human advisors as well. And that the SEC is now scrutinizing not just whether clients are invested in a manner consistent with their Investment Policy Statement, but also that if the advisory firm promises various 'tax-smart' management tactics (such as tax-loss harvesting), that the SEC will be examining whether the firm really followed through accurately, for every client, on those commitments as well.

Also in industry news this week:

• The SEC approved a new FINRA rule intended to make it tougher for brokers to have client disputes expunged from their record
• A Morningstar survey suggests that clients are more likely to fire their advisor for service or relationship reasons rather than because of fees or lackluster investment returns

From there, we have several articles on cash flow and spending:

• Why I Bonds might be losing some of their luster amid a declining inflation rate
• How many consumers are moving their banking activities to their brokerage firm
• Why advisory firm clients might want to consider personal cyber insurance

We also have a number of articles on advisor marketing:

• Why it can be valuable to first consider what makes an advisory firm marketable before selecting specific marketing tactics
• The potential benefits for advisory firms of hiring a fractional marketer
• Why spending money to produce valuable content, rather than on advertising, can pay off for a firm and their broader community

We wrap up with 3 final articles, all about managing time:

• How advisory firm owners can prepare themselves and their firms for time away from the office
• Why having new experiences might be the key to making it feel like time is passing more slowly
• The gradual process that led 1 advisor to realize the current size of his firm was 'enough'

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that on the heels of introducing its own self-clearing platform and acquiring fellow RIA custodian Shareholder Services Group, Altruist announced that it raised $112 million in a series D funding round, bringing its total funding to more than $290 million. The company said the bulk of the funds will go toward research and platform development as it attempts the challenging task of getting more mid-sized RIAs to move over to Altruist from their current custodian.

Also in industry news this week:

• The Foundation For Financial Planning has gotten a boost toward its goal of connecting 10,000 CFP professionals with pro bono work thanks to increased funding from Orion Advisor Solutions
• FINRA has resubmitted a proposal, now with tighter rules, that would allow a broker working remotely to supervise other brokers, without the broker's home being designated as a branch office

From there, we have several articles on practice management:

• How delegating tasks that they don't enjoy can not only save an advisor time, but also empower their staff
• Why technical experts can be more successful in leadership roles than 'professional managers'
• Why one large RIA focuses on filtering prospective clients and employees to promote the long-run sustainability of its company culture

We also have a number of articles on Social Security:

• Why news stories about possible future reductions in Social Security benefits are likely leading some individuals to claim early, and what advisors could do to assuage these fears
• How advisors can help clients reduce the amount of their Social Security benefits (and overall income) subject to taxation
• A proposed strategy within defined contribution retirement plan investments that could encourage more individuals to delay claiming Social Security benefits

We wrap up with 3 final articles, all about managing distractions:

• Why focusing on what one can control can be more productive than 'doomscrolling' through the news
• The potential productivity and happiness benefits of doing an audit of one’s online activity
• How concerns about distraction are not exclusive to the modern era, having been shared by medieval monks centuries ago

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that, according to a recent survey, RIAs are considering metrics for growth other than assets under management, from the number of clients to diversifying the services they offer. And given that growth can create additional time burdens for advisors, many advisors are looking to automation as a way to gain efficiencies as they scale.

Also in industry news this week:

• How RIAs appear to be increasingly pushing back against proposed rules and enforcement actions from the SEC
• How one broker-dealer reminded its advisors that they do not necessarily have full independence when it comes to selling their firm

From there, we have several articles on spending:

• Why now could be a good time to buy a house despite elevated mortgage rates
• Why some of the most valuable 'luxury goods' money can buy do not have brand names
• How advisors can help clients transition from savings mode during their working years to spending down their portfolio in retirement

We also have a number of articles on management:

• 7 books that can help new managers lead effective teams
• How to create an employee onboarding process that can improve retention
• How advisory firm leaders can take advantage of the trend of 'boomerang employees'

We wrap up with 3 final articles, all about personal growth:

• Why taking a massive leap in personal growth can be rewarding, despite the risks
• Why self-compassion is more effective than self-criticism when it comes to overcoming mistakes
• A step-by-step process for finding and developing your passion without having to spend 10,000 hours working on it

Enjoy the 'light' reading!

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Enjoy the current installment of "Weekend Reading For Financial Planners" - this week’s edition kicks off with the news that the CFP Board of Standards launched its 1st ad campaign, dubbed "It’s Gotta Be A CFP", following its transition to a 501(c)(6) organization. In a change from previous campaigns, the first ad directly recommends that consumers seek out a CFP professional for financial advice, and future ads could more directly explain the benefits of earning the CFP marks.

Also in industry news this week:

• Top Democratic Senators are urging the Treasury Department to crack down on a range of estate planning strategies for high-net-worth individuals, including GRATs and IDGTs
• Amid fallout from recent bank failures, both Republicans and Democrats are considering whether current FDIC insurance limits should be increased

From there, we have several articles on retirement planning:

• Why contributions to Roth accounts can sometimes have greater uncertainty than traditional contributions in terms of their after-tax accumulation despite not being affected by future tax rate changes
• How the 'funded ratio' metric can help advisors create effective retirement spending recommendations
• A comparison of a range of variable spending strategies in retirement, from a 'floor-and-ceiling' approach to a 'ratcheting rule'

We also have a number of articles on advisor marketing:

• How to optimize the 5 most important pages on an advisory firm website
• 4 tools advisors can use to improve their website’s search visibility
• How advisors can create and deploy effective keywords to help consumers find their websites when searching online

We wrap up with 3 final articles, all about changes to professional credentials:

• The CFA Institute has unveiled a slate of changes to its certification process, from incorporating practical skills modules to new job-focused pathways in private wealth and private markets
• Why some states are considering reducing the higher education requirements to become a CPA
• CFP Board has announced the members of its new standards commission, which will review and evaluate its competency requirements for Education, Examination, Experience, and CE to earn and maintain the CFP marks

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