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 recent data published by Cerulli shows that the growth of assets in the RIA channel has outpaced that of broker-dealer firms over the last decade – which suggests that broker-dealers need to modernize their recruitment incentives that were designed for recruiting advisors from other broker-dealers but aren't enough to avoid losing increasing numbers of advisors to the independence and autonomy of the RIA channel.

Also in industry news this week:

• Although RIA M&A activity has continued at a strong pace, acquirers are increasingly targeting "adjacent" businesses like CPA firms offering tax preparation in order to expand their value proposition (showing that organic growth is still an imperative for all RIAs, even for PE-backed firms that have been focusing more on inorganic growth until recently)
• While many consumers rely on general-purpose AI tools like ChatGPT to generate answers to their questions, a comparison of several such tools shows that they still fall well short of performing reliably when it comes to doing investment research and analysis

From there, we have several articles on tax planning:

• While tax planning is a common way for advisors to add value, giving clients guidance on tax payment – and avoiding significant under- and overpayments of quarterly estimated taxes – can be highly valuable as well (particularly as the complexity of the tax code makes it increasingly difficult for someone to intuitively estimate their tax liability in the first place)
• Missing a Required Minimum Distribution (RMD) can incur a hefty tax penalty of up to 25% of the missed amount – however, the IRS allows individuals to apply for a penalty waiver in cases where RMDs were missed due to reasonable error or circumstances such as cognitive decline (which is unfortunately not uncommon among aging clients of financial advisors)
• When non-real-estate-experts invest in rental property, they occasionally aren't aware of the ability to take depreciation – and when that happens, the IRS specifies a process for correction that allows the taxpayer to make up for all of their years of missed depreciation at once (rather than amending multiple years of tax returns)

We also have a number of articles on practice management:

• The hiring and team retention principles that RIAs can learn from top-performing consulting firms
• The potential opportunities of offering internships to develop the next generation of advisory firm talent (and pitfalls to avoid!)
• Why compensation conversations need to be bigger than one-off annual conversations – and how to tie individual compensation to firm growth goals

We wrap up with three final articles, all about (personal and professional) risk management:

• Whether or not it's worthwhile to try to anticipate and prevent every type of risk, or if advisors (and clients) should just focus on the upside, rather than unanticipated (and unlikely) adverse events
• How economic shifts over time have made us wealthier than ever… but have also decreased autonomy for young people – and how to balance both purpose and guardrails in young people's lives
• Why risk tolerance goes deeper than just questionnaires, and how to help clients balance personal and financial constraints to find a fulfilling balance

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 financial advisors across industry channels finds that three-quarters of respondents are using Artificial Intelligence (AI) technology in some form in their practices, with automating administrative work and preparing for client meetings amongst the top use cases. Nonetheless, a number of advisors expressed ongoing concerns with the use of AI, including around compliance, accuracy, and client trust. The latter point appears to be well-founded, as a separate survey found that only 38% of affluent investors are at least somewhat comfortable with AI technology (with older respondents being significantly less likely to express comfort with it), suggesting that advisors who do incorporate in their practices could build trust with their clients by being clear about how AI is used and what their firm is doing to keep client data secure.

Also in industry news this week:

• A recent survey suggests that while there are positive returns to be gained by engaging in legacy planning conversations with clients, some advisors and clients are unsure whether the other party is interested in discussing this planning topic
• How a piece of legislation introduced in Congress could reduce mutual funds’ tax efficiency disadvantage (compared to ETFs) when it comes to capital gains distributions

From there, we have several articles on investment planning:

• An analysis finds that accessing the returns of fixed income and other high-yielding assets without receiving taxable dividends and capital gains distributions (in taxable accounts) could be worth up to 1% or more annually for a typical high-income investor
• While some clients might be attracted by the high yields of certain dividend-paying stocks and newer fund products, these can potentially lead to 'traps' (in the case of the former) or underperformance compared to the underlying index (in the case of the latter)
• How a "yield-split" approach to asset location could help clients get even greater tax efficiency from their index fund investments

We also have a number of articles on estate planning:

• How advisors can help clients close the "Bank of Mom and Dad" when financial support for adult children is leading to dependency and/or are straining their finances
• The potential benefits of lifetime giving for wealthy individuals, from giving money when it’s more impactful to the ability to witness the benefits of their generosity
• How intra-family loans can be used as a planning tool for individuals to financially support family members while still earning a return and avoiding gift tax exposure

We wrap up with three final articles, all about AI and the job market:

• Why previous hypotheses about why human financial advisors will remain in high demand amidst technological innovations might not hold up in the case of advanced AI capabilities
• Why a desire for a "human touch" has led to continued employment for a range of occupations whose jobs could have been automated by available technology
• How "vibe reporting" about AI (particularly when it comes to company layoff announcements) can lead to the mistaken impression that certain changes were caused by AI (rather than by other factors, such as previous over-hiring)

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Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that research from Morningstar finds that the vast majority of actively managed funds underperformed their passively managed peers in 2025, with even fewer active funds outperforming over 5-, 10- and 20-year periods. Nevertheless, the research did identify a few market segments (including certain bonds and real estate) where actively managed funds (particularly those with relatively lower costs) tend to fare relatively better, suggesting that there could be room for advisors to add value by identifying funds in these areas that might be supportive of their clients' portfolio needs and investment goals (though, as always, past performance isn't indicative of future results!).

Also in industry news this week:

• A review of financial advisor salaries finds that lead advisors (and those living in certain states in the Northeast) tend to see the highest pay
• A survey finds that financial advisors are seeing more success converting defined contribution retirement plan participants into wealth management clients, suggesting that advising on plans not only could be a profitable business line itself but also serve as a valuable marketing tactic

From there, we have several articles on retirement planning:

• Why the 'guaranteed' returns of delaying Social Security benefits (and the unknown returns of a broadly invested portfolio) could make waiting to claim benefits a valuable way to mitigate against longevity risk
• How certain client preferences (such as being able to spend more earlier in retirement when they are relatively healthier) could shift their optimal Social Security claiming age earlier than what a purely math-based calculation might prescribe
• Why it rarely pays for both spouses to delay Social Security benefits (with an 'optimal' strategy often being for the higher-earning spouse to delay benefits as long as possible and the lower-earning spouse to claim as soon as they can)

We also have a number of articles on estate planning:

• The many complications involved when transferring real estate to heirs and how financial advisors can support clients by getting this conversation started early (to help avoid potential tax issues and family conflicts)
• While more states are allowing for "transfer on death deeds" that allow real estate to be transferred to heirs without going through the probate process, care must be taken when applying for this structure to avoid legal headaches down the line
• Four tax-aware strategies for clients looking to give a primary or vacation home to their children or to charity

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

• Why 529 plans can be particularly attractive for college saving, not only for their tax benefits but also for their superior treatment compared to certain other account types (including Roth IRAs) when it comes to income counted in financial aid calculations
• Eight tips for appealing financial aid awards, including the ability to make colleges compete directly against one another (particularly if they're peer institutions)
• How algorithmic pricing has become embedded in the college aid landscape and how students and their families can benefit by reading between the lines on the aid offers they receive

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 latest RIA compensation report finds that while base salaries remain the largest component of advisor compensation, firms that offer incentive pay have seen more revenue and client growth in recent years than those that don't (notably, these firms also are more likely to have strategic plans and a defined client value proposition, which could play a role in these results as well). Beyond compensation, the survey also found that top-performing firms were more likely to offer an established employee value proposition (including features such as a compelling work setting, emphasis on teamwork, recognition, and connections, and a defined mission statement, culture, and values), suggesting that attracting and retaining high-quality talent (and the follow-on effects for client growth) could mean looking beyond headline salary figures to the broader monetary and non-monetary compensation firms can provide their employees as well.

Also in industry news this week:

• A recent SEC settlement shines a light on potential regulatory violations stemming from RIAs' use of "hedge clauses" in their advisory agreements
• A survey looking at advisory firm career development finds that internal training and compensation for certifications and continuing education are the most commonly available features of such programs, with a number of advisors seeking less-common offerings, including external coaching

From there, we have several articles on tax planning:

• Four red flags that might appear in a prospect's or client's tax return and how advisors can use them to identify future tax-savings opportunities
• How financial advisors can help high-income clients duck the "SALT torpedo" that can result in a significantly higher marginal tax rate
• The pros and cons of three timing strategies for taking Required Minimum Distributions (RMDs) and how advisors can play a valuable role in ensuring they are taken in a timely and accurate manner

We also have a number of articles on retirement planning:

• A recent study finds that annual healthcare costs could be expected to increase at an average annual rate of 5.8%, well above the overall inflation rate
• How the growing costs of the Medicare program could lead to significantly higher IRMAA surcharges in the years ahead (increasing the value of income management in retirement)
• While lump-sum figures of total healthcare spending in retirement might be scary, in reality these costs often represent a more manageable burden on an annual basis (though still a major line item on many retirees' budgets)

We wrap up with three final articles, all about time management:

• Why "time fragmentation" can prevent advisors from focusing on strategic initiatives that could boost long-term growth and how time blocking could be an effective solution
• How "hurry sickness" can lead to negative physical and mental effects for busy professionals, and how a task organization system that moves items off an individual's plate can prevent this phenomenon from occurring
• Why procrastination isn't necessarily a matter of (a lack of) mental will, but rather a reflection of ambivalence between two choices that each have their own upsides

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 from CFP Board finds that clients working with CFP professionals receive a wider range of detailed planning services and have greater trust with their advisors than those receiving financial advice from other financial advisors. Which could help those with the CFP marks stand out from the crowd when it comes to attracting new clients, though since these stronger numbers weren't universal across clients working with CFP professionals, it remains up to individual advisors to perform up to the standards set by their peer population.

Also in industry news this week:

• Charles Schwab's CEO said recently that the company plans to ramp up its client lending options for RIAs on its platform, potentially giving these firms a greater ability to compete with wirehouses on securities-backed borrowing opportunities
• Client referrals account for more than half of new clients at firms across industry channels, according to a survey from Cerulli, with referrals from Centers Of Influence (COIs) coming in second (suggesting that building these relationships could both result in prospect referrals and the ability for advisors to identify high-quality professionals for their own clients' tax and legal needs)

From there, we have several articles on retirement planning:

• An analysis of different retirement income strategies identifies three that can help clients maximize their lifetime income in retirement (with advisors well-positioned to support clients in enacting these flexible spending strategies)
• A study finds that unexpected expenses are quite common in retirement, with higher-income retirees being more likely to experience such an event in a given year and for these expenses to be higher
• Why small-but-permanent adjustments to retirement spending can have a greater impact on a retirement income plan's sustainability compared to large-but-temporary adjustments

We also have a number of articles on practice management:

• A formula to help advisory firms diagnose and predict their organic growth path shows the potential importance of prioritizing their value proposition for their ideal target clients
• Why delivering an exceptional client experience isn't just about the specific tactics used, but also about having a unifying strategy to ensure consistency across advisors and clients within a firm
• How firms can consider balancing the benefits of providing personalized service to clients with the efficiency gains available from greater systematization

We wrap up with three final articles, all about workplace trends:

• Nine trends shaping the workplace in 2026 and beyond, from Artificial Intelligence's (AI's) impact on the hiring process to the imperative for companies (including advisory firms) of being aware of growing AI-enabled fraud capabilities
• While many companies are asking their employees to work more days per week in the office, they are also balancing the tradeoffs (including employee retention and the costs of hosting more employees) that come with more in-office hours
• How co-working spaces are experiencing a comeback following the pandemic, attracting not only remote workers and solopreneurs, but also larger firms seeking flexible workspaces

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 CFP Board announced a series of changes to its competency standards. For current CFP professionals, the biggest changes concern Continuing Education (CE), with CFP Boarding increasing the requirement to 40 hours every two years (up from 30 hours), though certificants will be able to count five hours of practice management credit towards this requirement and roll over up to 10 hours to the next cycle if they earn more than needed. Candidates for CFP certification will see changes as well, including to the experience requirement, where those pursuing the 6,000-hour standard pathway will need to show their experience demonstrates at least three of the seven steps of the financial planning process. Notably, these revisions have staggered effective dates in the coming months and into next year, so CFP professionals and candidates alike will have time to adjust to these changes.

Also in industry news this week:

• A report finds that while an infusion of private equity dollars has increased valuations for RIAs, internal successions continue to remain viable as firms explore a range of pathways to transfer ownership to the next generation
• A pair of surveys finds that while adoption of artificial intelligence tools is increasing amongst advisory firms, it is often done on an ad hoc basis without a strategic approach to how potential time efficiencies gained could be redeployed to improve client service and business performance

From there, we have several articles on investment planning:

• While many investors spend significant time and money seeking investment "alpha", the performance of the broader market often has a greater influence on an individual's absolute returns, suggesting that redeploying these resources to other planning areas could have a greater influence on reaching their financial goals
• An analysis finds that even if an investor could identify a 'stock-picker's market' in advance, the potential gains from moving away from an index might not be worth the cost of doing so
• Why it might be worth paying extra for certain funds if doing so significantly reduces investment frictions or helps an investor stay the course on their chosen investment plan

We also have a number of articles on advisor marketing:

• A marketing plan for smaller firms that can allow them to attract their ideal target clients without breaking the bank (or their calendars)
• How an advisory firm website refresh can ensure that prospective clients understand what the firm looks like and who it works with today (which might be quite different than when the site was first created)
• How advisory firms can accelerate growth by marketing how they are 'different' instead of 'better' than other sources of advice

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

• Why the "ultra-processed" nature of social media is different than other forms of content and helps explain why it's so hard to reduce this form of consumption
• How LinkedIn has experienced significant growth over the past several years in part by holding strong on requiring participants to use their actual names (reducing the amount of abrasive content on the platform)
• Tactics for reducing time spent on social media, from physical changes (e.g., keeping one's smart phone in a particular room when at home) to logistical tweaks (e.g., scheduling a specific time of day to manage one's social media accounts)

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 an analysis of SEC data by AdvizorPro finds that while total advisor headcount dropped in 2025, the RIA channel saw a net gain of more than 17,000 advisors, with the hybrid channel seeing the largest losses at more than 15,000 advisors. Looking specifically at current advisors changing firms, the data show that while intra-channel moves remain common amongst advisors in the broker-dealer and hybrid channels (though less so at wirehouses), many advisors are gravitating towards the RIA channel (with very few RIA advisors moving away from the channel), suggesting that the draw of greater independence remains strong.

Also in industry news this week:

• CFP Board announced that its current COO K. Dane Snowden will succeed Kevin Keller as its CEO, with the new leader taking the reins of a growing organization (which added more than 6,700 certificants last year) that will look to add to its population and strengthen its professional standards as it seeks to ensure that CFP professionals continue to stand out from other sources of financial advice in the eyes of consumers
• FINRA has advanced a proposed rule that would eliminate requirements for broker-dealers to supervise unaffiliated RIA activities by its representatives on an ongoing basis

From there, we have several articles on retirement planning:

• An analysis assesses which retirement income strategies result in the largest ending value for clients who want to leave large legacy interests (as well as the pros and cons of doing so)
• How advisors can support clients by giving them confidence in their chosen retirement income strategy so that clients aren't tempted to take additional defensive measures that could be 'overkill' and reduce their income or overall wealth
• 8 ways advisors can help clients reduce their worry that they will run out of money in retirement, from insuring against major potential expenses (e.g., long-term care or a major tax increase) to highlighting additional sources of potential liquidity

We also have a number of articles on advisor value:

• How human advisors decisively won the 'battle' against robo-advisors and what this might mean for potential competition with AI-powered advice tools in the future
• How advisors can play a valuable role by helping clients consider possible life events they might not have previously prepared for, from a period of disability to unexpected lawsuits
• While there are more than 100 ways financial advisors can add value for clients, zeroing in on the key services that an advisor's ideal target client needs can allow them to attract good-fit clients without spending additional time mastering less-common planning areas

We wrap up with three final articles, all about work-life balance:

• Why the quality of time spent working is often more important than the total number of hours one works in a week
• How seeking out more opportunities for pleasure could be a more effective strategy than seeking out the latest productivity 'hacks'
• Psychological research suggests that regularly stepping away from the office (even when one is in the middle of a major project) could ultimately lead to greater productivity

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 finds that financial advisors appear to be employing increasingly comprehensive service offerings as they look to serve wealthier clients, with Millennial advisors at the vanguard of this trend. Nevertheless, given the advisor time and staffing requirements of offering additional (and deeper) services, many advisors appear to be looking for efficiencies in other areas, including employing model portfolios (as 90% of surveyed advisors reported using them), with other options including tailoring their service model to fit the needs of their ideal target client (which could have the added benefit of allowing advisors and firms to stand out compared to more generalist peers).

Also in industry news this week:

• The Treasury Department officially announced this month that it is postponing its proposed Anti-Money Laundering Rule until 2028, giving affected firms additional time to comply and the government the opportunity to potentially tighten its scope
• A survey finds that while a strong majority of financial advisors report benefiting from Artificial Intelligence (AI) tools, many are looking for evidence from peers and regulators that they can deepen their engagement effectively and compliantly

From there, we have several articles on retirement and tax planning:

• While Income-Related Monthly Adjustment Amount (IRMAA) surcharges can be tough to avoid (and represent a thorn in many clients' sides), advisors can potentially offer hard-dollar value by managing client income around IRMAA's 'cliff' thresholds and through strategic planning around charitable giving
• How advisors can allay client concerns that Required Minimum Distributions (RMDs) will lead them to significantly boost their spending and reduce their overall wealth, from considering "in-kind" transfers to highlighting the generous life expectancy assumptions that go into calculating RMDs
• Why the best way to plan around taxes in retirement is not necessarily to defer too much income, nor too little, but rather to seek out and find the equilibrium rate that balances them out

We also have a number of articles on advisor marketing:

• How building a strong personal brand can help financial advisors stand out in the marketplace and make it easier for clients to refer friends and family
• Lessons financial advisors can learn from online influencers in creating content that leads to "parasocial" relationships that can build trust with potential clients even before meeting with them face-to-face
• While rebranding an advisory firm can demonstrate its expansion beyond its founder or local area, doing so successfully can require both hard-dollar outlays and strong two-way communication with key stakeholders

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

• How increased participation in workplace retirement plans and strong market performance have led to a sharp rise in the number of "moderate millionaires", who might not be able to have the lavish lifestyles of millionaires of the past (but could make excellent financial planning clients)
• How advisors can support clients in calculating the 'ideal' level of wealth that will allow them to achieve their lifestyle goals while working and in retirement
• Why some families are creating family mission statements to increase the chances that their wealth will last for multiple generations (and how such statements can support advisors in creating estate planning recommendations)

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 study by financial advisor AI platform Jump, which analyzed thousands of anonymized client meetings, found that advisors were broadly able to improve client sentiment over the course of meetings. Notably client sentiment saw a bigger boost when advisors demonstrated stronger emotional intelligence (including by having balanced talk time with their clients, asking open questions, and serving as an empathetic listener to client concerns), suggesting spending time during meetings to better understand and respond to client concerns could ultimately pay off in the form of improved client sentiment (and perhaps, ultimately, greater client retention and referrals).

Also in industry news this week:

• A survey from Vanguard finds that "peace of mind" was the most-cited reason its clients cited for pursuing an advice relationship, with an advisor's ability to monitor the client's financial situation in the background while also acting in the client's best interest as key drivers of creating this sentiment
• The SEC this week proposed amendments that would change the definition of "small entity" when it comes to the application of regulations for RIAs from having less than $25 million of assets under management to less than $1 billion, which could potentially lead to reduced regulatory burdens for a wide swath of firms

From there, we have several articles on investment planning:

• Why investment concentration can be a double-edged sword and how advisors can offer value when clients express concerns that their portfolios are either over- or under-concentrated
• Why liquidity risk is an important part of evaluating a potential investment (and why it's sometimes overlooked by investors)
• While advisors might pride themselves on providing evidence-based investment recommendations, investment research and performance can sometimes offer contradictory conclusions

We also have a number of articles on retirement planning:

• A review of studies on the drivers of happiness suggests that certain "additions" (e.g., finding more opportunities for socializing) and "subtractions" (e.g., "buying time" by outsourcing certain undesirable tasks) could improve wellbeing in retirement
• How financial advisors can help retiring clients successfully make the adjustment from full-time work to having "7 Saturdays A Week" (both financially and in identifying what they are planning to retire "to")
• While studies can provide aggregate information about the drivers of happiness, each individual's preferences are likely to differ from the broader population, suggesting that a more personalized approach to planning for retirement could lead to a more satisfying result

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

• Six ways individuals can improve their attention spans, from scheduling breaks to avoiding "task switching" as much as possible
• Why "critical ignoring" is a valuable skill at a time when there is no shortage of (sometimes unreliable) information sources available
• An experimental study suggests that relying on AI tools to create written products that require deep thought could lead to less-convincing work and an accumulation of "cognitive debt" in the process

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 2025 was a fruitful year for RIAs, as firm leaders look ahead to 2026, several key themes and decision points are on the horizon, from navigating the recent calm market environment (which is supportive of client portfolios and firm AUM, but could make certain clients or prospects complacent about their need for professional advice) to increasing industry movement (both in terms of the brisk pace of RIA dealmaking and advisors moving to RIAs from other industry channels and between RIAs themselves), all while firms look to boost their organic growth and create the operational (and staffing) capabilities needed to maintain a high level of client service. Which could make 2026 a key year as many firms look to be opportunistic while ensuring they remain prepared for a future economic or market downturn.

Also in industry news this week:

• A survey finds that only one-quarter of advisors are at least "very satisfied" with their firms' tech stacks, though many firms appear to be looking to improve them, whether in terms of enhancing core functions (e.g., CRM or financial planning software) or exploring opportunities with AI-enabled software
• The U.S. House of Representatives in December passed the INVEST Act, which could lead to more RIAs qualifying as "small entities" (entitling them to certain regulatory relief) and to more individuals qualifying as "accredited investors" with access to certain private market investments

From there, we have several articles on tax planning:

• While Modified Adjusted Gross Income (MAGI) is the metric used to determine eligibility for several deductions included in the One Big Beautiful Bill Act (OBBBA), the exact types of income MAGI includes for the purposes of OBBBA measures remains unclear in the absence of IRS guidelines
• How financial advisors can potentially save clients thousands of dollars in taxes by ensuring they coordinate their Qualified Charitable Distributions (QCDs) with other IRA withdrawals when it comes to fulfilling their Required Minimum Distributions
• How helping clients navigate the capital gains "bump zone" can help them avoid unexpected large increases in the marginal tax rate they face in a given year

We also have a number of articles on investment planning:

• How advisors with clients interested in cryptocurrency investments can offer value by calibrating an allocation that meets their particular risk-return preferences and investment goals
• Why the timing of investments in (often volatile) cryptocurrency ETFs plays a large role in determining an investor's ultimate returns
• While Bitcoin is sometimes referred to as "digital gold", Bitcoin and physical gold have shown quite different performance characteristics in recent years

We wrap up with three final articles, all about New Year's resolutions:

• Why setting reasonable goals and being kind to oneself are key tactics for fulfilling New Year's resolutions
• New Year's resolution opportunities for financial advisory clients, from reviewing their estate plans to reassessing their liquidity needs
• 11 daily habits that can help lead to success in achieving one's goals in the coming year and beyond

Enjoy the 'light' reading!

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