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 Senate Republicans this week released their version of major tax legislation, following the passage of similar legislation in the House of Representatives last month. While the core of the Senate legislation largely mirrors that of House-proposed measures, including permanently extending (i.e., without a scheduled sunset) the lower individual tax rates enacted as part of the Tax Cuts and Jobs Act (TCJA), and maintaining the estate tax exemption at TCJA-prescribed levels (which would reach approximately $15 million in 2026), there are several differences between them (e.g., with the Senate maintaining the $10,000 cap on the deductibility of State And Local Taxes [SALT], whereas the House would raise the limit to $40,000, subject to certain income limitations). Further, disagreements on other parts of the legislation (e.g., cuts to Medicaid spending) could make passing the legislation by President Trump's target of July 4th challenging (though legislators would still have time to do so before certain TCJA measures expire at the end of the year).

Also in industry news this week:

• The SEC this week announced that it is axing several rules proposed during the tenure of previous Chair Gary Gensler that would have impacted RIAs, including the outsourcing and predictive data analytics rules and amendments to the Custody Rule
• An SEC committee has recommended several reforms related to the use of mandatory arbitration agreements by RIAs, though stopped short of a call to restrict them outright

From there, we have several articles on retirement planning:

• The latest report from the Social Security Board of Trustees reveals that while the date of exhaustion for the Social Security trust fund approaches, policymakers still have several options to shore up the system and prevent any reduction in benefits
• Many Americans appear to be contemplating claiming Social Security benefits based on concerns about its sustainability and administration, offering an opportunity for advisors to provide a more complete picture of how the system operates
• How delaying Social Security benefits can potentially generate a stronger return than a variety of other investment options

We also have a number of articles on client communication:

• How using a 'master list' of goals can help reveal client goals that they might not have thought of on their own
• How advisors can examine a client's goals to assess how they might react during future bouts of market volatility
• How advisors can encourage clients to become more flexible with their goals to help them avoid going down an unsustainable path if circumstances turn against them

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

• A recent study of Microsoft user data finds that workers receive an average of 117 emails and 153 instant messages daily (in addition to an onslaught of scheduled and impromptu meetings), creating distractions from focus work and often leading their workdays to bleed past regular business hours
• Some research suggests that Americans' commutes have gotten longer amidst an increase in hybrid workplace policies and rising home prices
• Why employee stress is not just a matter of workplace wellness, but represents a business risk for firms as well

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 U.S. investors found that while 96% of respondents said they trust their (human) financial advisor, only 29% said they trust algorithms, suggesting that consumers continue to impose a "trust penalty" on algorithmically generated advice. Other key findings from the survey included a gap between long-term investment return expectations of investors and advisors (12.6% and 7.1%, respectively), continued investor concerns about inflation (with 61% ranking it as their top financial fear), and an increased demand for tax planning services (perhaps amidst the potential sunsetting of several measures within the Tax Cuts and Jobs Act), all of which offer advisors the opportunity to add value through proactive communication and technical planning strategies.

Also in industry news this week:

• Under its budget proposal for the fiscal year 2026, the SEC expects to be able to examine 11% of RIAs per year, down from 14% in 2024, as it trims staff throughout the organization
• RIAs lead the way among advisory channels in AI adoption, according to a recent survey, as advisors on the whole see themselves as more knowledgeable about technology.

From there, we have several articles on investment planning:

• How interested financial advisors can evaluate different types of private investments, whose return profiles tend to be more opaque and challenging to analyze compared to publicly traded instruments
• Why one author sees a confluence of factors (including a relatively low cost of capital and a sluggish IPO market) supporting private equity investments in the current economic and market environment
• How advisors can offer value by helping clients understand whether they truly need to take the risks associated with certain alternative investments

We also have a number of articles on marketing:

• Six ways advisory firms can fuel organic growth, from identifying their "loyal client advocates" to giving staff members specific business development roles that align with their strengths
• How advisors can effectively attract and serve women clients, whose wealth has increased significantly and is likely to continue to do so in the coming years
• How demonstrating expertise in helping clients during a specific major life transition (e.g., buying a home or claiming Social Security benefits) can help advisors tap into a potential pool of millions of individuals who face that challenge each year

We wrap up with three final articles, all about Artificial Intelligence (AI) and the workplace:

• Why natural language processing tools (rather than text generation or more advanced "agents") could be the next big use case for AI in the workplace
• Why professionals whose work is "illegible" (a group that likely includes comprehensive financial planners) will be less likely to see their jobs threatened by AI
• How a new generation of AI-powered tools allow advisors to create their own applications without needing to have coding skills

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 finds that the number of SEC-registered RIAs, the assets that they manage, and the number of clients they serve all increased between 2023 and 2024 and suggests the industry is robust across the size spectrum, with both smaller and mid-sized firms seeing growth (often pushing them into higher size brackets and/or from state to SEC registration) and remains attractive to new entrants, whether those moving over from other models or totally new firms.

Also in industry news this week:

• ETFs remain the most commonly used investment vehicle among advisors, according to a recent survey, while some "alternative" assets saw the greatest growth rates in terms of adoption over the past year
• Several large brokerages have jettisoned their robo-advisor arms, signaling the challenges they faced in acquiring users of these services at a low cost as well as the value that human advisors can provide compared to their digital counterparts

From there, we have several articles on retirement planning:

• Why pursuing financial independence is often more a matter of gaining flexibility rather than merely seeking leaving the workforce as soon as possible
• What the Financial Independence Retire Early (FIRE) movement has contributed to the broader personal financial discourse and why more extreme implementations of its practices could create challenges for its followers
• Two alternative types of "retirement" that could provide clients with greater flexibility without necessarily leaving the workforce permanently

We also have a number of articles on supporting clients in the home-buying process:

• How advisors can add value by helping clients understand when they might be buying "too much" house
• Why the lifestyle benefits of buying a particular home could outweigh financial considerations for some clients when such a purchase doesn't seem to make sense 'on paper'
• How advisors can take an actuarial approach to help retired clients assess the implications of a potential home purchase on the sustainability of their financial plan

We wrap up with three final articles, all about building relationships:

• Why social relationships, rather than individual effort, are often at the heart of personal and professional success
• How to find time to connect with colleagues on a personal level when everyone in the (virtual) office is busy
• How finding belonging in professional or personal affinity groups can lead to greater connections and personal fulfillment

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 advisory firm employees found that about half of respondents are currently working in the office five days a week, with the remainder divided among hybrid formats or full-time work from home. Notably, the survey identified differences in workplace flexibility by role (with client-facing advisors working more days per week in the office) and by experience (with newer firm employees more likely to have more in-office days each week). Altogether, the survey suggests that after firms operated remotely for a certain period during the pandemic, many are taking the opportunity to establish work location policies that fit the needs of their business, employees, and clients alike.

Also in industry news this week:

• In the continued absence of formal SEC guidance on advisory firm use of Artificial Intelligence (AI), many firms are taking a curious, but cautious, approach toward adopting AI-powered tools
• A recent report identifies the growing total wealth controlled by women in the U.S. and offers strategies for firms to tap into this potential business opportunity

From there, we have several articles on retirement planning:

• A study finds that, on average, retirees' satisfaction with their financial situation tends to increase with age, potentially offsetting the average decline in consumption compared to their pre-retirement years
• Why 'life upgrades' could be an effective way to encourage hesitant clients to spend more money in retirement
• How advisors can help clients live more prosperous lives by dispelling retirement spending myths that clients might have internalized

We also have a number of articles on working with client couples:

• How advisors can effectively work with each member of client couples when one partner serves as the household 'CFO'
• Tactics for encouraging client couples to hold regular money check-ins between meetings with their advisor to improve communication and vision setting
• Four questions advisors can ask client couples to discover underlying risk tolerance differences between partners

We wrap up with three final articles, all about spring cleaning:

• How decluttering one's life can extend beyond physical items to include the information they consume and the obligations they take on
• How leaders can reduce their workload even when they've delegated as many tasks as possible
• Seven essential processes that can allow financial advisory firms to run more efficiently and productively

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 RIA employee compensation and wellbeing found that advisors appear broadly satisfied with their jobs and (perhaps unsurprisingly) identified a positive correlation between income and happiness at work (though separate research suggests other factors might contribute more to advisor wellbeing). The survey also demonstrates the potential income upside for advisory firm employees who advance in their firms, with CEO respondents reporting average total annual compensation (including salary, cash bonuses, and non-cash compensation) of more than $900,000 (client-facing advisors surveyed had strong earnings as well, with average total compensation of more than $400,000). Altogether, while the pool of respondents was somewhat limited (and appears to skew senior in rank), the survey suggests that financial advice can be a lucrative career, in terms of compensation, a sense of meaning, and overall wellbeing.

Also in industry news this week:

• While the latest iteration of Republicans' major tax legislation does not restore financial advisory fees as a potentially deductible expense, a coalition of organizations continue to push for it to be added to future legislation
• Charles Schwab announced this week that it is launching a program to help breakaway advisors launch and grow an independent RIA, offering a new option in the market of 'supported independence' platforms

From there, we have several articles on retirement planning:

• How Treasury Inflation-Protected Securities (TIPS) can help mitigate inflation risk and maintain a client's purchasing power throughout retirement
• Comparing the relative and disadvantages of creating a TIPS 'ladder' versus investing in a TIPS index fund and how advisors can identify which types of clients could benefit from each
• How combining a single premium immediate annuity with a TIPS ladder can help mitigate both longevity and inflation risk for a client

We also have a number of articles on practice management:

• Why seeking a 'specialist' to fill specific firm needs can often lead to better results for more mature advisory firms than hiring a talented generalist
• Considerations for firm founders who are considering hiring their child into the business, including the need to ensure buy-in from key stakeholders
• How RIAs can launch effective internship programs, from creating a position that offers the opportunity to perform meaningful work to providing mentorship opportunities to interns

We wrap up with three final articles, all about how to be a better listener:

• Four techniques to be a better listener, including the skill of seeking to summarize what a speaker is saying rather than immediately identifying a solution
• How interjections such as "huh?" and "mmhmm" can help guide conversations and demonstrate that an individual is paying attention to what a speaker has to say
• Techniques for getting back on track when a conversational partner has zoned out

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 Republicans in the House of Representatives this week released their long-awaited tax plan to address the impending sunset of many measures in the 2017 Tax Cuts and Jobs Act. The proposed legislation makes several aspects of TCJA 'permanent', including maintaining TCJA's tax brackets and the elevated estate tax exemption, while also introducing new potential tax-savings opportunities (though some of these are limited by income and/or are temporary), including increasing the cap on deductibility of State And Local Taxes (SALT) and allowing for the deductibility of some interest on loans for motor vehicles whose final assembly takes place in the United States. Notably, though, this legislation is subject to change as it appears headed for a vote in the full House and as the Senate considers its own version of the tax legislation.

Also in industry news this week:

• A recent study finds that financial advisory clients are leaving largely positive, in-depth reviews for their advisors
• FINRA has responded to some concerns about its proposed rule regarding outside business activities, saying that it is designed to streamline regulations and not (as has been suggested by some commenters on the proposal) impose additional burdens on unaffiliated RIAs that conduct certain business with broker-dealers

From there, we have several articles on investment planning:

• Four trends to watch in 2025 when it comes to mutual funds and ETF fees, from the continued decline in average fund fees to the increasing number of complex, higher-fee ETFs
• Amidst fee compression for other fund types, many money market funds continue to charge elevated fees, creating an opportunity for financial advisors to identify the best options for their clients
• How the index providers chosen can affect the fees and composition of index funds, which can differ even among those with similar investment objectives

We also have a number of articles on education planning:

• How advisors can help their clients identify the best 529 plan option from their needs, from identifying the tax benefits available in their state to considering whether a plan from another state might be preferable
• The pros and cons of four alternatives to 529 plans for education savings, including taxable brokerage accounts and Roth IRAs
• How families can use 529 plans to support education spending needs across multiple generations

We wrap up with three final articles, all about financial advice:

• Why standard "good" financial advice might be different than "effective" advice that meets a client's personalized goals and preferences
• While it can be tempting to optimize one's personal finances, building in "room for error" can offer both psychological and financial benefits
• Experimental research demonstrates the downside of delayed gratification, as some individuals might never find the 'right' time to enjoy something deemed special

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 found that long-feared fee compression in the financial advice industry has yet to come to pass, though some advisors continue to see potential for small reductions in asset-based fees in the future. These results largely match results from the recent Kitces Research Study on Advisor Productivity, which found that the typical fee schedule for firms charging on a graduated basis remains at 100 basis points (bps) for client assets up to $1 million, then declines to 90 bps at $2 million, 75 bps at $5 million, and 60 bps at $10 million in assets. Nonetheless, amidst the potential emergence of artificial intelligence-powered digital planning offerings, advisors who lean into the areas of value that help them stand out from digital competitors and implement a curated offering of high-impact service offerings for their ideal target clients could help insulate themselves from the chance of future industry fee compression.

Also in industry news this week:

• Younger Americans are eager for financial advice (and appear willing to pay for it) according to a recent survey, creating a potential opportunity for advisors who have the wherewithal and capacity to meet their planning priorities (which can differ from older, retirement-focused clients)
• A study of advisors who are moms finds strong career satisfaction among this group, with equity ownership and established career paths among the factors contributing to their satisfaction with their position and firm

From there, we have several articles on retirement planning:

• A mathematical analysis of Roth conversions identifies the factors that can make this strategy more likely to be successful for an advisor's clients
• Seven reasons advisors might reconsider engaging in Roth conversions for a given client, from having a client who has strong charitable intentions to working with a client who puts a high priority on delaying taxation for as long as possible
• How implementing "conversion cost averaging" or "barbelling" strategies for timing Roth conversions can provide financial and emotional benefits for clients

We also have a number of articles on advisor marketing:

• Six key criteria for effective marketing strategies, from attracting an advisor's ideal target client to being repeatable
• Marketing ideas for new firm owners who might have a lot of time (but little revenue), including holding in-person meetings to hone their pitch and website optimization
• Key metrics advisors can use to evaluate their current marketing strategy and identify areas to adjust

We wrap up with three final articles, all about giving and receiving feedback:

• 20 tips for providing better feedback, from doing so in a timely manner to being willing to brainstorm potential solutions
• How to recognize "hidden feedback" and uncover the true meaning behind sent by a peer or manager
• Ways professionals can handle feedback like top-level athletes, including focusing on comments from a trusted inner circle to creating a system for implementing it to track self-improvement

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 this week that it will raise its annual fee for new and renewing certificants by $120 to $575 in order to help fund its public awareness campaign to promote the CFP brand with the public and encourage consumers to seek out CFP professionals when looking for a financial advisor. While CFP board highlighted the improved brand recognition and desire to work with a CFP professional amongst the public since its public awareness campaign began in 2011, some certificants have questioned whether the fee increase (which comes on the heels of a $100 hike in 2022) and the promotional campaign it supports will lead to more clients (and revenue) for their individual practices.

Also in industry news this week:

• A majority of financial advisory clients feel reassured by their advisor in the current market environment, according to a recent survey, with advisors pursuing a mix of 'high touch' and 'low touch' communication methods
• A FINRA proposal that purports to streamline regulatory obligations regarding outside business activities and private security transactions could lead to significantly higher compliance requirements for certain broker-dealers and unaffiliated RIAs who use their brokerage services, according to some industry participants

From there, we have several articles on investment planning:

• How advisors can evaluate gold as a potential part of client portfolios as it hovers around record-high prices (in both absolute terms and relative to inflation)
• While U.S. Treasuries are sometimes referred to as 'risk-free' assets, the experience of the past few years has demonstrated the value for advisors of aligning duration with client cash flow needs
• An analysis of how buffer ETFs have performed against different benchmarks finds mixed results for these products, which have expanded in number and variety in the past few years

We also have a number of articles on retirement planning:

• Survey data suggest that many individuals underestimate the chances that they will need high intensity long-term care during their lives (while others overestimate the odds, which could lead them to underspend in retirement)
• An analysis of long-term care insurance policyholder data finds that 38% of those with standalone policies claim benefits by age 79, while 88% have claims before age 90
• Key questions that can help clients determine the right retirement community for their needs (and to help their financial advisor assess the financial implications of different fee models)

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

• A four-step method to most effectively transform money into lasting memories with loved ones
• Why an individual's wealth extends beyond just financial assets and how advisors can encourage clients to consider how they might maximize their time and healthy years as well
• While a client might be able to afford a major purchase (e.g., a ski chalet), assessing whether it will lead to greater overall wellbeing, or, alternatively, more stress, is more challenging

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 found that Americans' top "burning questions" when it comes to retirement include the amount they need to have saved to retire comfortably (with respondents expecting to need $1.26 million), whether Social Security will be there when they need it (with those in Generation X particularly concerned about this issue), and whether inflation will rise after they retire. Notably, financial advisors are well-positioned to address all three of these 'pain points' (whether by creating a retirement income plan, letting clients know about the (true) state of the Social Security system and the effects of different policy choices, or creating an asset allocation that mitigates against inflation risk), presenting an opportunity to demonstrate their ability to solve the key issues facing their ideal target clients and attract more prospects in the process.

Also in industry news this week:

• The RIA channel continues to attract advisors away from wirehouses and broker-dealers, though new advisors continue to predominantly enter the industry through the latter channels
• A recent Supreme Court ruling puts retirement plan fiduciaries in the spotlight with the potential for a flood of legal actions, including against sponsors of relatively smaller plans

From there, we have several articles on retirement planning:

• A list of the top considerations for financial advisors and their clients when it comes to deciding whether to make traditional or Roth contributions to retirement accounts
• How Roth contributions and conversions can offer both financial and psychological benefits for clients
• Why pre-tax retirement contributions can potentially be a better option than Roth contributions in clients' peak earning years, even if they expect tax rates to increase in the future

We also have a number of articles on marketing:

• How advisory firms can position themselves for stronger organic growth amidst a volatile market environment
• How advisors can overcome the feeling of having a scattered marketing approach by defining "who" they want to serve and "how" they want to reach and engage them
• What advisors are doing to attract next-generation clients, from being willing to focus on their short-term 'pain points' to meeting them in the online spaces they frequent

We wrap up with three final articles, all about artificial intelligence:

• How advisors can build "custom GPTs" that can perform a variety of functions without requiring any coding experience
• While generative AI tools can help individuals take on 'thinking' tasks, relying on them could reduce users' own critical thinking capabilities
• Why using AI notetaking tools to record and summarize meetings could lead participants to be more cautious when contributing to discussions

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 as total household financial wealth grew to a record high of $90 trillion at the end of 2024, so too did the number of households advancing up the wealth ladder, with the High-Net-Worth (HNW) category of households with at least $5 million seeing a significant gain. Which could create opportunities for firms to seek opportunities to move 'upmarket' by trying to add new HNW clients who might not have an advice relationship (or whose current advisor doesn't provide sufficiently comprehensive service). Which, according to Kitces Research on Advisor Productivity, can lead to higher productivity for advisor teams (but can require an investment in staffing and higher-end planning services to meet their complex planning needs).

Also in industry news this week:

• According to a recent survey, 40% of financial advisory clients would switch to an advisor who offers estate planning services, with help with specific tasks like beneficiary designations or tax strategies as the most sought-after service among respondents
• RIA M&A activity set a first-quarter record to start the year (following a record-setting 2024), as private equity-backed buyers and sellers looking to grow within a larger firm have driven the deal market

From there, we have several articles on investment management:

• An analysis of a variety of portfolio rebalancing strategies finds that not rebalancing at all could lead to the highest returns (particularly for clients with longer investment horizons)
• While a review of research on the topic suggests that portfolio rebalancing might not lead to better risk-adjusted returns, it could still prove to be a valuable tactic for advisors, particularly when it comes to aligning a client's portfolio to their risk tolerance and capacity
• How portfolio rebalancing can provide a psychological (and potentially financial) return for clients during market downturns, particularly for those nearing and in retirement

We also have a number of articles on cash flow planning:

• How financial advisors can help clients evaluate the decision of whether to pay off their mortgage early
• The financial (and psychological) considerations surrounding the decision of whether to put down more than 20% when buying a new home
• While clients might think buying stocks on margin is too risky, they might not realize they are engaging in similar risk-taking behavior when they do so "on mortgage"

We wrap up with three final articles, all about having 'enough':

• How the "Jevons Paradox" explains why, despite many technological advances over the past century that have made work and other tasks more efficient, many people are busier than ever before
• Why having an "outcome orientation" could be a solution to information overload in the modern age
• Why finding a purpose after achieving financial independence can help individuals get off of the path of always seeking 'more'

Enjoy the 'light' reading!

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