Archives Of Weekend Reading For Financial Planners

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that a recent pair of surveys finds a potential disconnect between financial advisors and wealthy clients, with client perceptions lagging advisors' confidence in the level of service they provide across several areas (from retirement and tax planning to responsiveness to client inquiries) and only 57% of clients indicating they would recommend their advisor and/or firm to others. Which suggests that while industry client retention levels remain high, surveying their own client base could give advisors a picture into areas where clients are seeking higher-level service (and perhaps offering an opportunity to show the "invisible work" they're doing on the clients' behalf) and to identify clients who are most enthusiastic about the firm (and could be more likely to make referrals going forward).

Also in industry news this week:

• The SEC has fined Vanguard $19.5 million in part for inaccurate marketing materials related to the compensation of advisors working in its Personal Advisor Services program, demonstrating the need for clarity for firms when discussing fee models and advisor incentive compensation structures
• Inflation remains the top concern amongst retirement savers, according to a recent survey, potentially opening the door for advisor discussions on how inflation could impact clients' financial plans and potential ways to mitigate it

From there, we have several articles on retirement planning:

• The long-run benefits of delaying Social Security benefits and how advisors can address potential concerns hesitant clients might raise
• Why a subset of financial advisory clients might consider claiming Social Security benefits early, from a current need for additional income to a compelling health reason
• How a Social Security "bridge" strategy can provide clients with greater income throughout their retirements

We also have a number of articles on tax planning:

• How the One Big Beautiful Bill Act (OBBBA) could increase the value of Qualified Charitable Distributions (QCDs) by helping clients keep their income below key phase-out thresholds for certain tax deductions
• QCDs will be easier to report in 2025 thanks to a change to Form 1099-R, though clients and their advisors will still be on the hook for ensuring that a particular distribution qualifies for QCD status
• How financial advisors can help charitably minded clients weigh the relative tax benefits between making QCDs or donating appreciated securities

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

• The many benefits of boredom, including the ability to consider big-picture issues in the absence of constant busyness
• Why differentiating between "additive" and "extractive" can help an individual get the most out of technology while avoiding its potential downsides
• Why true multitasking is nearly impossible for most individuals and how certain work practices can help an individual efficiently knock items off their to-do list while focusing on one task at a time

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 a survey of financial planners by CFP Board found that respondents had a median income of $185,000 in 2024, with CFP professionals having 13% higher income than their peers (after controlling for a variety of factors), and that median pay can move significantly higher along with an individual's years of experience and the number of individuals they manage. The survey also found that 84% of CFP professionals surveyed said they experience personal fulfillment with their careers, with 53% of respondents expressing "very high" fulfillment. Altogether, these findings suggest that financial planning can be a financially and personally rewarding career with a potential bump for those who make the investment in CFP certification (though it might take some time for such benefits to accrue).

Also in industry news this week:

• A recent survey suggests that while many younger advisors seek well-defined career paths and training opportunities, many RIAs are falling short in these areas and are potentially hindering succession plans (which often languish in the planning stage)
• Amidst the anticipated "Great Wealth Transfer" between generations in the coming years, advisory firms are considering how (and whether) to take action to encourage heirs to keep assets with the firm

From there, we have several articles on investment planning:

• Common mistakes made by ETF investors, including trading during volatile or less-liquid periods and not considering the tax and reporting implications of certain funds
• An analysis of data from the past 15 years indicates that, on the whole, lower-fee funds continue to outperform higher-fee funds in the same peer group
• Why "Boomer candy" investment products that mitigate downside loss are sometimes based on strategies that are relatively simple (and less expensive) to implement by an investor or their advisor

We also have a number of articles on practice management:

• Using the "Rule of 40" to measure a firm's health and (if interested) make it more attractive to potential buyers or outside investors
• Why leadership roles evolve as a firm grows and how a system of accountability can help avoid a decline in standards and results over time
• How implementing a centralized operations team gives advisors and staff the opportunity to focus on what they do best and allow a firm to scale effectively

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

• While the modern era provides countless ways to track and optimize one's health, productivity, and finances, focusing on what matters most could offer upside in these areas while causing less stress
• How optimizing for a single productivity metric could lead to challenges if the tactics that worked in the past to maximize it become less effective (and why exploring a broader range of paths to success could prove to be more fruitful)
• How financial advisors can help clients develop a "good enough" mindset to increase their financial contentment

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 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!

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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 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!

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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 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!

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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 report from The Ensemble Practice finds that advisory firms are in a period of "prosperous stagnation" with strong profitability (with the firms surveyed showing a record average operating profit margin of 39.2% in 2024) but organic growth falling short of targets (an average of 3.1% below the average firm growth goal of 10.0%). The report suggests that while many firms have streamlined operations and experienced tailwinds from strong equity markets the past couple years, bringing on new clients has been a challenge for some (highlighting that fast-growing firms tend to allocate larger shares of their budgets to marketing, expenditures which could crimp profitability in the short run but lead to greater opportunities in the long run).

Also in industry news this week:

• Artificial Intelligence (AI), anti-money laundering, and cybersecurity top the list of concerns amongst RIA compliance officers, according to a recent survey, as firms adjust to a rapidly evolving technological and regulatory environment
• An Executive Order signed this week intends to clear the way for 401(k)s to be able to offer private equity, cryptocurrencies, and other alternative assets in their investment lineups

From there, we have several articles on retirement planning:

• The potential value of incorporating "income risk" (which can be a particular concern for clients nearing retirement, as well as those just staring out) when considering client portfolio allocations
• Four ways to beat "sequence of return risk", including incorporating flexible spending rules, holding "buffer" assets, and more
• Why a "rising equity glidepath" in retirement can improve client outcomes and how advisors can effectively communicate this (perhaps counterintuitive) strategy to clients

We also have a number of articles on practice management:

• Why establishing a strong firm culture is not just a matter of having an established mission and values, but is also a matter of understanding the employee experience and getting buy-in from all team members
• How an effective firm-wide retreat can both bring the team closer together and give the business a clearer sense of direction for the coming months
• How establishing a "Culture Committee" helped one firm improve employee morale and retention after a particularly stressful period

We wrap up with three final articles, all about college planning:

• Eight to-dos for clients and their children heading to college this fall, from ensuring proper insurance coverage to getting key legal documents in place
• How the Common Data Set document can help families find colleges where their student might receive a generous merit aid award
• How a student's post-college success is determined by factors that go well beyond the prestige of the school they attend

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 North American Securities Administrators Association (NASAA) has proposed an updated Model Rule that would allow state-registered advisors to use testimonials in their marketing materials, four years after the SEC issued its Marketing Rule allowing testimonials for SEC-registered advisors – which would, if finalized and adopted into states' securities regulations, finally resolve the discrepancy between the testimonial rules for advisors registered with the SEC (and states that chose to conform to the SEC rule) and those registered in states that continue to ban testimonials in marketing.

Also in industry news this week:

• A recent study projects that, despite the anticipated wave of retirements among Boomer advisors, advisor headcounts in the RIA channel will actually rise in the coming years as those retirements spur M&A activity that tends to favor firms moving from the broker-dealer channel over to the RIA side
• New data from FINRA and the SEC show that the overall movement of advisors from broker-dealers to the RIA channel shows no signs of slowing down, and with the number of broker-dealer representatives still greatly outnumbering RIA advisors, the trend could even accelerate in the near future

From there, we have several articles on tax planning under the One Big Beautiful Bill Act (OBBBA):

• While OBBBA introduced three new deductions for qualified tips, overtime wages, and auto loan interest, a maze of narrow restrictions on those deductions means that not everyone who thinks they'll be eligible to take the new deductions will actually be able to
• OBBBA made several amendments to the rules for Qualified Small Business Stock (QSBS) under Sec. 1202, most notably increasing the maximum QSBS gain exclusion to $15 million, creating a large potential tax windfall for the relatively few startup founders, employees, and investors holding QSBS
• OBBBA introduced new eligible expenses for 529 plan withdrawals, as well as an entirely new type of 'Trump' account for retirement savings on behalf of minor children, further expanding the range of savings options available for parents looking to put away funds on their children's behalf

We also have a number of articles on advisor technology:

• How concrete use cases have emerged in recent years for how AI tools can benefit advisors – although importantly, the time and cost savings represented by AI have less of an impact on advisor productivity than providing high quality advice and charging and appropriate amount for it!
• How generative AI tools introduce new risks to advisory firms including providing clients with false or misleading information or divulging sensitive client data, making it essential to review all AI-generated communications and avoid having the AI provide actual advice
• Although some expected that the rise of AI would lead to flashy tools generating new investment insights, the reality has been that AI has done far more to streamline advisory firms' back-office operations

We wrap up with three final articles, all about money, class, and psychology:

• While large families in TV and movies were traditionally often depicted as middle- or upper-middle class, large families today as shown on reality TV and in social media influencer posts are often surrounded by signs of wealth and luxury, reflecting how the cost of raising children has itself become something of a luxury good over the years
• How the booming wealth of the wealthiest 10% of households in the U.S. has meant that the traditional markers of millionaire privilege are no longer as exclusive as they once were
• How the early-2010s fad of "extreme couponing" faded as stores got less generous with their coupon policies – and how its spirit lives on today with points enthusiasts who get a similar thrill out of finding a good deal

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 Charles Schwab's annual RIA benchmarking study found that median firm AUM increased 16.6% in 2024, with revenue up by 17.6%. While some of these gains can be attributed to strong market performance, firms also boosted their organic growth during the year, with firms with less than $250M AUM showing 9.2% net organic growth and larger firms seeing 5.0% growth (while RIAs as a whole also maintained a 97% client retention rate). In the report, Schwab also identified key traits of "top performing" firms (including having a defined ideal client persona and a defined client value proposition) and the key strategic initiatives respondents plan to pursue (with generating client referrals topping the list for the third consecutive year, followed by recruiting new staff).

Also in industry news this week:

• A recent report highlights the rapid growth of RIA "consolidators", with advisors seeking them out for compliance and succession support, though concerns about a potential loss of autonomy and independence from joining one remain
• The Treasury has delayed until 2028 the effective date for a proposed Anti-Money Laundering (AML) rule that would have affected most SEC-registered RIAs and plans to revisit the substance of the rule to perhaps tailor it more specifically to focus on businesses that face the greatest AML risk

From there, we have several articles on tax planning:

• The One Big Beautiful Bill Act (OBBBA) has made the Section 199A tax deduction permanent (i.e., without a scheduled sunset date), potentially benefiting not only business-owner clients but also those who own REITs in their portfolios as well
• The OBBBA has also made permanent the Qualified Opportunity Zone program (albeit with a narrower scope and updated rules), providing some clients with the chance to defer gains on the sale of certain investment property
• How charitable planning considerations might change under the OBBBA, from the new 0.5% AGI 'floor' on the deductibility of charitable contributions that starts in 2026 to the ability of non-itemizers to potentially get a tax benefit for (at least some of) their charitable gifts

We also have a number of articles on retirement planning:

• How financial advisors can help clients explore their funding options amidst an expected increase in the costs of long-term care in the coming years
• The planning considerations surrounding unpaid care, from the benefits of creating a formalized care plan well in advance of a need to cash flow planning for younger clients who might be responsible for (unpaid) caregiving in the future
• An analysis of the options for advisors and their clients who face a premium increase on their long-term care insurance policies

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

• Why flexibility is the key to saving on flights, from flying on less popular days of the week to traveling during "shoulder season"
• How State Department employees created an online system that allows many Americans to renew their passports online in as little as 15 minutes (and achieved overwhelmingly positive reviews in the process)
• Amidst crowding in many airport lounges, some airlines and credit card companies are looking to open smaller lounges offering more casual, grab-and-go options for their customers

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 a recent survey by Vanguard found while only 38% of investors reported considering time savings when signing up to receive financial advice, 76% of clients report saving time from working with an advisor (with a median of two hours per week, or more than 100 hours per year), suggesting that advisors can sell their value not only through the financial and emotional benefits that they can provide (which are also reflected in the survey results), but also by showing how working with them could be an effective way for clients to 'buy' time (a practice that has been shown as an effective way to convert money into greater happiness).

Also in industry news this week:

• A recent survey finds that next-generation employees at broker-dealers are looking for improvements in branding and social media promotion from their firms as they look to build their own practices and take the reins from a rapidly graying advisor population
• RIA M&A volume hit a record in the first half of 2025, with particular demand for mid- and large-sized sellers and amidst continued private equity interest in the space

From there, we have several articles on tax planning:

• Why the "One Big Beautiful Bill Act" (OBBBA)'s phase-out ranges for certain deductions might impact financial advisors' Roth conversions analyses going forward
• How advisors can offer clients value by correctly timing Roth conversions and Required Minimum Distributions (RMDs) to avoid potential penalties or excess contributions
• How annual evaluations of the potential benefits of Roth conversions versus capital gains harvesting can allow advisors to demonstrate ongoing value and help their clients lower their lifetime tax bills

We also have a number of articles on practice management:

• Six trends in advisor recruitment, including an increased focus among transitioning advisors on earning equity stakes and finding a good cultural fit with a new firm
• Five key roles for firms looking to scale effectively, from a visionary leader to a 'rainmaker' who attracts new clients to technicians who create advanced planning analyses
• How using case studies during the hiring screening process can help a firm better analyze candidates' skills and allow candidates to better understand the demands of the position they're considering

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

• How AI tools like ChatGPT can serve as a nutrition 'coach' that tracks progress, offers meal ideas, and provides encouragement over time
• How engaging in short "exercise snacks" throughout the day can keep the body moving and promote strength even when one doesn't have enough time for a longer workout
• Why maintaining good posture can offer psychological and physical benefit and how simple daily practices can help improve 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, amidst the growing number of RIAs it supervises, the Securities and Exchange Commission (SEC) is moving ahead with a potential plan to raise the $100 million regulatory assets under management threshold for SEC registration, with the regulator having talks with some state securities regulators (which would bear an increasing regulatory burden if the threshold were lifted and more firms came under their watch) on the issue. While the SEC has not released a formal proposal (which would likely offer advisers and other interested parties a chance to air their views on the issue), such a move could prove frustrating for firms forced to switch to state registration (particularly those with clients spread across state lines) as it would potentially require affected RIAs to register with multiple state regulators and be subject to a varying set of rules depending on which state(s) they are registered in, compared to the more uniform supervision they experience under the SEC.

Also in industry news this week:

• A recent survey finds that (unsolicited) client referrals are the top source of new clients for advisors this year, while networking, client appreciation events, and educational events have also proven to be fruitful for some advisors
• A survey suggests that some advisors might be underestimating their clients' interest in charitable giving, an area where advisors can potentially offer hard-dollar tax savings for clients

From there, we have several articles on financial planning implications of the "One Big Beautiful Bill Act" (OBBBA):

• Potential planning strategies in the wake of the increased State And Local Tax (SALT) cap, (including the potential value of managing income for clients near the phase-out limits)
• How the new $6,000 tax deduction for seniors works (and why clients who are delaying claiming Social Security benefits could be in for a pleasant surprise)
• Post-OBBBA estate planning strategies for clients across the wealth spectrum and how trusts could be an effective way for some clients to manage income amidst a growing number of phase-out ranges for certain tax benefits

We also have a number of articles on marketing:

• Why the value of creating content tailored to an ideal client profile has increased in a world where more individuals are using Artificial Intelligence (AI) tools to find answers to their financial questions
• How 'traditional' Search Engine Optimization (SEO) still has value for advisors amidst growing use of AI tools for Internet searches
• How advisors can optimize their websites for ChatGPT search and reap the benefits of "Answer Engine Optimization" (AEO)

We wrap up with three final articles, all about social life:

• Data show that the time Americans spend on in-person socializing has decreased dramatically over the past several decades, with increased time spent on watching television and using smartphones among the potential causes
• Four ways to socialize effectively in one's 30s and beyond, from formalizing social events to 'organizing' friends to identify the most relevant event types for each group
• A step-by-step approach to hosting a memorable (and relatively low-stress?) dinner party

Enjoy the 'light' reading!

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