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, 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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Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that Congress has passed highly anticipated tax legislation, making 'permanent' (i.e., without a scheduled sunset) the lower individual tax rates enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA), increasing the estate and gift tax exemption (which was scheduled to revert to approximately $7.14 million next year) to $15 million in 2026, and raising the limit on the deductibility of State And Local Taxes (SALT) to $40,000 (though this measure is scheduled to revert to the current $10,000 in 2030 and begins to phase out for consumers with more than $500,000 of income), among many other measures. Which will ultimately provide greater tax planning certainty to advisors and their clients for 2025 and beyond (and avoid the year-end rush they faced with the late-December passage of TCJA in 2017).

Also in industry news this week:

• A recent survey of wealth management firm leaders found that while respondents were confident in their abilities, many are facing challenges finding the right people for their teams and creating time to support them
• RIAs are being targeted by a phishing attack impersonating an SEC official, highlighting the value of vigilance and staff training in the face of varied cybersecurity risks

From there, we have several articles on retirement planning:

• How population-wide life expectancy statistics can provide misleading estimates when it comes to choosing a specific client's life expectancy for financial planning purposes
• The cognitive biases that can lead clients to underestimate their life expectancy and affect their financial decision-making
• How financial advisors can add value for client couples by assessing both longevity and mortality risk when creating retirement income plans

We also have a number of articles on practice management:

• Why taking a proactive approach can help an aspiring successor show a firm founder how they can be an effective partner in helping the firm grow into the future
• A look into the range of financing options available for advisors looking to buy an equity stake in their firm without making a large, lump-sum payment
• How some founders are turning to "synthetic equity" programs to create incentives to attract and retain talent without giving up control over the firm

We wrap up with three final articles, all about (financial) independence:

• While many clients might say they have a goal of financial independence, this concept can mean very different things to different individuals (and can change over time)
• Why pursuing an extreme version of financial independence could lead to a less enjoyable and meaningful lifestyle, and how alternative approaches can provide a sense of freedom without having to make some of these sacrifices
• How to cultivate a sense of independence that goes beyond financial means and extends to the ability to live life on one's own terms

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 finds that while financial advisory firms on the whole have seen strong AUM growth in recent years, strong market performance might be masking organic growth challenges among many firms (though, notably, RIAs have been growing their advisor headcounts and market share, often at the expense of wirehouses and large broker-dealers during this time). The report suggests that firms seeking to boost their organic growth could do so by, among other tactics, building a stronger brand (e.g., by identifying what truly differentiates them in the marketplace for advice), leveraging digital lead generation capabilities, and more effectively using CRM software. Which could ultimately lead to a virtuous cycle of attracting more new clients as well as talented advisors who seek to work at growing firms.

Also in industry news this week:

• While the estate tax exemption is slated to rise to $15 million in 2026 under Republican-proposed legislation, estate planning will remain a key topic for advisors and their clients across the wealth spectrum, from managing possible state estate tax exposure to ensuring that clients’ end-of-life preferences are met
• A recent survey finds that while Americans frequently go online for personal finance information, they are quite skeptical about the advice they find, creating an opening for financial advisors to provide high-quality content and potentially attract new clients in the process

From there, we have several articles on investment planning:

• While so-called "smart beta" factor strategies have tended to underperform the broader market after gaining in popularity in the mid-2010s, the lower valuations associated with them today could foretell a brighter future
• Recent data paint a bleak picture for the performance of actively managed funds (across U.S. and international equities, as well as in the fixed income space), highlighting the challenge of selecting funds that will outperform their benchmarks over an extended period of time
• At a time when alternative investment strategies are increasingly being marketed to financial advisors and retail investors, the true magnitude of their purported benefits (particularly when weighed against the expenses and relative illiquidity often associated with them) could be unclear

We also have a number of articles on marketing:

• Six challenging questions that a prospect might ask a potential advisor to dig deeper beyond the advisor’s standard pitch
• A framework to help advisors develop their sales skills, even if they don’t see themselves as salespeople
• A five-step prospecting process for advisors to sell their value with greater confidence and trust

We wrap up with three final articles, all about credit cards:

• Holders of certain "ultra-premium" credit cards will see the annual fees on these cards go up this year, leading to a calculation of whether the benefits that come with them are worth the higher fees
• How to optimize the value of credit card rewards points, whether an individual is looking to redeem them for more frequent or higher-end travel
• Why credit card companies’ most important customers aren’t those who regularly pay interest on their balances, but rather big spenders who use higher-end cards

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 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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