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 the Investment Adviser Association has petitioned the SEC to ask the regulator to change how it defines a small adviser from one with less than $25 million under management to a firm with 100 or fewer employees. The group argued that this change would help more small firms, which tend not to have the same staffing and resources compared to their larger counterparts, as the SEC contemplates a growing number of new and amended rules.

Also in industry news this week:

• A survey suggests that wealthy individuals across all generations are interested in engaging with advisors on social media, with YouTube being the top platform chosen by respondents
• Amid an avalanche of claims for the pandemic-era Employee Retention Credit, the IRS is halting the processing of new claims until 2024 and plans to closely scrutinize those that have already been made 

From there, we have several articles on financial choices:

• How advisors can help clients see that there usually are more than 2 options when it comes to making financial decisions
• While clients might be frustrated when their advisor says, "It depends," advisors can add significant value by helping them make the best decision today while working with them to make adjustments over time if circumstances change
• Why having "enough" financial independence might be a better goal than a myopic focus on being able to retire early

We also have a number of articles on marketing to affluent clients:

• How offering a "second-opinion service" can help advisors generate more referrals from clients and centers of influence
• How advisors can help clients plan for the upcoming sunset of the lower gift and estate tax exemptions under the Tax Cuts and Jobs Act
• Why giving prospects room to talk, rather than trying to convince them of the merits of an advisor's strategies, could be a more effective way to convert them into clients

We wrap up with 3 final articles, all about setting and adjusting goals:

• Why, when it comes to career planning, it can be more effective to focus on what one wants to be known for rather than the titles or positions they want to attain
• Why setting flexible goals often can be more effective than fixed or "SMART" goals
• How a "chuck-it list" can be a useful companion to a "bucket list" when it comes to setting goals

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent survey indicates financial advisors are the most trusted source of financial advice for consumers across generations, and are particularly trusted among wealthier individuals. Further, the survey results suggest that advisors who offer comprehensive services tailored to the needs of their target clients are likely to be more successful both retaining their current clients and in attracting clients who might be dissatisfied with their current advisor and their service offering.

Also in industry news this week:

• The SEC agreed to a series of settlements with 9 RIAs resulting from charges of improper use of hypothetical returns in advertising under the regulator's marketing rule
• How several CEOs of large RIAs and AdvisorTech companies have found that receiving funding from private equity firms and taking the responsibility for the high growth expectations that come with those dollars can potentially cost them their jobs, or at least turn their leadership positions into jobs they no longer want

From there, we have several articles on retirement planning:

• How advisors can use "retirement mentorship" programs to help clients nearing retirement feel more confident making the transition
• While many clients look forward to the freedom retirement provides, those leaving the workplace can potentially lose certain things as well, from their sense of identity to structure in their daily lives
• The range of paths available to those who have achieved financial independence that can provide purpose and fulfillment

We also have a number of articles on practice management:

• Why setting clear expectations and demonstrating a culture of professionalism are crucial for firms looking to make a successful hire
• What job candidates are looking for in the current tight advisor labor market and how firms can woo their top prospects effectively
• How firm owners can avoid potential pitfalls when hiring and training next-generation advisors

We wrap up with 3 final articles, all about the psychology of decision-making:

• While it might be tempting to lament previous decisions that were (or weren't made), the likelihood that these choices would have turned out exactly as one might imagine is low
• How advisors can help their clients make the most of the inevitable "plot twists" that arise in life
• Strategies advisors can use to overcome the common reluctance to ask for help

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that the SEC this week issued a risk alert outlining how it selects firms to examine, the areas it focuses on during exams, and how it chooses which firm documents to request, details that could ultimately help firms be better prepared for their next exam and make it a shorter, less painful process!

Also in industry news this week:

• Changes to CFP Board’s procedural rules went into effect September 1 and are intended to make the disciplinary process more efficient for respondents as well as CFP Board staff, and to expand the CFP Board’s ability to pursue more complaints against CFP professionals
• A NASAA model rule follows in the footsteps of FINRA and CFP Board in extending the amount of time advisors can leave their jobs without having to retake qualification exams

From there, we have several articles on advisor marketing:

• 3 behavioral science principles advisors can put into practice to attract more clients
• How advisors can build understanding and trust with their clients to foster long-term relationships
• How advisors can tactfully address the behavioral and emotional challenges prospects and clients face when it comes to money

We also have a number of articles on investment planning:

• A survey indicates that many advisors currently using alternative investments with clients are looking to increase these allocations to further boost portfolio diversification
• While clients might be tempted to move assets from equities to cash amidst the higher interest rate environment, doing so could limit their progress toward long-term financial goals
• How the new interest rate environment presents an opportunity for advisors to reevaluate their clients’ fixed income allocations

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

• How suburbs have experienced a renaissance that started well before the pandemic
• Why poverty persists in the United States and what might be done to fix the problem
• How a pandemic-era tax break has led to a booming business of affiliate marketers targeting small businesses

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that the Massachusetts Supreme Judicial Court ruled that the state's fiduciary rule for broker-dealers can stand, potentially opening the door for other states to impose similar standards that exceed the requirements of the Securities and Exchange Commission's Regulation Best Interest rule.

Also in industry news this week:

• A legal challenge to FINRA's operations as a self-regulatory organization has the potential to upend the current regulatory system for broker-dealers and their registered representatives  
• A recent study indicates that while many consumers appear confident handling their finances on a 'DIY' basis during their careers, the percentage seeking professional financial advice increases as they approach retirement

From there, we have several articles on retirement planning:

• Why some individuals believe they need to save more money than they really do in order to have a sustainable retirement and how advisors can support them
• A recent study suggests that average inflation-adjusted spending among retirees decreases by 3% annually, a sharper decline than previous estimates
• The value in deciding how much is 'enough', and how advisors can support their clients in doing so 

We also have a number of articles on practice management:

• Best practices for giving praise and constructive criticism to motivate employees and help them grow
• How developing and communicating a clear strategic plan can not only set the long-term direction for a firm, but also help employees better understand the value of their work
• Why advisor happiness leads to better client service, and how firms (and clients) can assess whether their advisors are happy

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

• Why those in the upper class are taking a more understated approach to displaying their wealth compared to previous generations 
• The services and skills that can help advisors move 'upmarket' and attract wealthier clients 
• How "social debt" can serve as a psychological and financial challenge for wealthy individuals and what they can do to avoid this burden

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent CFP Board survey indicates that consumers do not expect AI tools to replace human financial advisors, but rather supplement advisors' work. Further, 87% of respondents said they would trust advice from human advisors, more than any other source of advice surveyed, and well above the 37% who said they trust generative AI tools.

Also in industry news this week:

• The SEC settled its first charges related to its new marketing rule with a firm that advertised 2,700% annual returns
• A survey suggests that older Americans prefer the term "longevity" to "aging", perhaps informing the way advisors discuss related issues with their clients 

From there, we have several articles on retirement planning:

• How advisors can help clients explore what they really want out of retirement rather than relying on 'scripts' for what retirement looks like
• 9 traits that determine whether an individual will be happy in retirement, and how advisors can help clients achieve them
• Why retirement wealth extends beyond dollars and cents to time, relationships, health, and skills

We also have a number of articles on investment planning:

• A recent study found that investors lagged the performance of the funds in which they invested by 1.7% per year over the past decade, suggesting a potential role for advisors in helping them overcome this "behavior gap" 
• While there are many potential ways to get rich in the markets, they can vary significantly by their degree of difficulty, likelihood of success, and time required to be successful
• How to approach designing a portfolio built to last for hundreds or thousands of years

We wrap up with 3 final articles, all about remote and hybrid work:

• How opinions of remote and hybrid work differ based on geography
• How some recent research has poured cold water on the idea that remote workers are more productive, at least in certain professions 
• Why a hybrid work approach where employees come into the office on specified days could boost productivity and employee satisfaction

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a recent study has found that consumers are increasingly likely to spread their portfolios across a range of asset managers, and that this trend is particularly pronounced amongst more affluent clients (e.g., millionaires), suggesting that advisors who believe they hold "everything" their clients have may actually have less than they realize. At the same time, though, the report also found that asset managers that are the primary source of retirement advice tend to hold a larger percentage of a client's portfolio, suggesting that offering financial planning services tailored to the needs of a firm's clients really is helping as a source of organic growth (as clients bring more assets under the advisor's management), and more generally positions smaller firms (that can provide more targeted advice) compete against large asset managers that are struggling to scale advice as they are also vying for client assets!

Also in industry news this week:

• FINRA has enacted a more thorough expungement process in an effort to ensure that all sides have a chance to be heard when brokers seek to have customer disputes removed from their record
• CFP Board is encouraging its certificants to commit to at least 20 hours of pro bono service each year and a variety of programs are available to help advisors meet this goal

From there, we have several articles on spending:

• Why individuals might consider their net worth, as well as their income, when it comes to deciding how much to spend each year
• The range of options available for couples deciding how to organize their finances
• How setting a spending 'cap' can help couples reduce money conflicts and enjoy more guilt-free spending

We also have a number of articles on practice management:

• How offering authentic, frequent, and powerful recognition can improve employee engagement and retention
• How managers can frame questions to get more honest responses from their employees
• Why middle managers can play a crucial role as connectors within an organization

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

• Why the negative effects of a lack of sleep on both health and productivity might outweigh the additional time gained by going to bed later and waking up earlier
• The importance of rest, including the benefits of taking breaks throughout the day
• How to stay in sync with one's circadian rhythms and the benefits of doing so

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that the Massachusetts Secretary of the Commonwealth has launched an investigation into how investment firms are using artificial intelligence-enabled technologies, echoing concerns expressed by the SEC that these tools could be used to put the firms' interests ahead of their clients if the methods of the developers who create the tools and the 'training' the AI goes through is not scrutinized sufficiently.

Also in industry news this week:

• A bill that would allow funds in 529 plans to be used for postsecondary credentials, including the CFP certification, is gaining significant bipartisan support in Congress
• A recent survey identified key topics on which financial advisors and investors have mismatched views, from expected investment returns to how they view risk

From there, we have several articles on investment planning:

• Why ESG investing appears to be facing skepticism from an increasing number of financial professionals
• How advisors can best support clients interested in Biblically Responsible Investing
• How fractional share investing has evolved form a tool for individuals with low account balances to a key enabler of direct indexing strategies that are valuable to a wider range of clients

We also have a number of articles on advisor marketing:

• How taking an intentional approach can help advisors win more referrals from Centers Of Influence (COIs)
• How 'taking a walk in the shoes' of key COIs can help advisors better explain their value proposition to these partners and generate more referrals
• A 3-step approach that advisors can use to build relationships with COIs and get exposure to their clients

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

• Why making tough decisions now, rather than putting them off, can ultimately benefit a firm's bottom line, as well as its clients and staff
• 5 pieces of time-tested advice that can help advisors improve their productivity and client service
• Why some advisors are choosing to turn away from serving high-net-worth clients

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that credit ratings agency Fitch on Tuesday downgraded its assessment of the U.S. government's creditworthiness from an AAA rating to AA+. While the downgrade has made headlines and might be startling to advisory clients (particularly those with significant portfolio allocations to U.S. Treasury securities), some observers suggest that the factors cited by Fitch for the downgrade (from the growing national debt to the recent debt ceiling standoff in Congress) do not necessarily portend a default, at least in the near term.  

Also in industry news this week:

• RIA M&A activity fell in the second quarter compared to the same period last year amid rising financing costs, though continued private equity interest in the RIA space could help buoy deal volume going forward
• According to a recent survey, RIAs appear to be taking a defensive approach toward the SEC's new marketing rule, with many firms changing their marketing materials to be in compliance with its provisions and few firms expanding their use of client testimonials and other opportunities offered by the rule 

From there, we have several articles on advisory firm hiring practices:

• A recent study explores what new advisors are looking for from their firms and how training and mentorship programs could play an important role in boosting advisor retention rates
• Why crafting an applicant-centric job posting and casting a wide net across hiring platforms can help firms boost the number of qualified candidates they attract when looking to add talent 
• Tactics firms can use to attract a more diverse pool of job applicants and the potential business benefits of doing so 

We also have a number of articles on retirement planning:

• Why common advisor concerns about Monte Carlo analysis are more about the software tools they use rather than the technique itself
• How advisors might be underestimating the longevity of their clients, particularly those who are healthy and have already reached retirement age
• A research study suggests that "psychological ownership" and loss aversion could be driving many individuals to claim Social Security benefits early despite the potential financial downsides of doing so

We wrap up with 3 final articles, all about workplace culture:

• How individuals tend to underestimate how much their colleagues, friends, and partners want their feedback 
• Why understanding and leveraging employee work style preferences can create more effective teams
• How being intentional and flexible when designing workspaces can promote productivity and wellbeing

Enjoy the 'light' reading!

Read More...

Enjoy the current installment of “Weekend Reading For Financial Planners” - this week’s edition kicks off with the news that RIAs appear to be building more comprehensive and more integrated tech stacks, and are benefiting from greater operational efficiencies, according to the latest Schwab RIA Benchmarking Study, with larger firms seeing gains in clients and AUM per professional and a reduction in annual hours spent per client for operations and administration in the past 3 years.

Also in industry news this week:

• The SEC released a proposal that would require firms to take steps to eliminate or neutralize conflicts of interest when using predictive data analytics tools with clients
• A recent study found that financial advisors remain the top source of financial advice for consumers, with social media coming in well behind

From there, we have several articles on practice management:

• 4 steps advisory firms can take to train their staff effectively
• 7 key standard operating procedures advisory firms can consider implementing to promote efficiency and consistent service
• Why letting team members struggle with new assignments can ultimately give them more confidence and allow firm owners to delegate more tasks

We also have a number of articles on retirement planning:

• An analysis shows that despite the decline in access to defined benefit pensions, the typical retiree today receives more monthly income than one who retired 50 years ago
• Why older individuals tend to have a harder time being approved for mortgages despite having better credit scores and more assets
• Why some experts are calling for policymakers to shore up the Social Security trust fund indefinitely while others think a shorter duration would be acceptable

We wrap up with 3 final articles, all about facing challenges:

• 10 harsh lessons one business owner learned on his entrepreneurial path and how they apply to financial advisors
• Why it might be better to knock off small tasks when they arise rather than letting them build up over time
• 5 steps advisors can take to spur themselves to action when facing a daunting challenge

Enjoy the ‘light’ reading!

Read More...

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that Charles Schwab's latest annual RIA Benchmarking Study shows that while average firm assets under management fell in 2022, due largely to weak market performance, organic growth remained strong, mitigating a portion of the market effects on client portfolios. Further, the study identifies the traits of "top performing" firms, which, during the past 5 years, saw nearly triple the client and net organic asset growth compared to other firms.

Also in industry news this week:

• How an SEC committee proposal to allow third-party examinations of the growing number of RIAs harkens back to a similar proposal that failed to advance in Congress more than a decade ago
• A study shows that a majority of advisory firm clients surveyed chose the first advisor with whom they met, though younger clients appear to be doing more research before choosing an advisor

From there, we have several articles on wellbeing:

• Why tracking employee wellbeing metrics could be good for both firms and their employees
• How vacations can improve an individual's physical, mental, and spiritual health, in addition to their work performance
• Key wellness trends that firms can consider implementing with their employees to promote their wellbeing and potentially improve retention

We also have a number of articles on spending:

• Why a previous skeptic of luxury cars decided that buying a $65,000 Porsche was the right decision for her
• Why it is important for clients to consider the 'hidden' costs of buying a vacation home before jumping into a purchase
• How advisors can help clients strike a balance between living for today and delaying gratification

We wrap up with 3 final articles, all about career development:

• Why neither advisory firms nor their advisors can get everything they want out of an employment relationship
• The important, but less obvious, factors an advisor can consider when thinking about changing firms
• What knowledge workers can do to avoid having their jobs taken over by artificial intelligence tools

Enjoy the 'light' reading!

Read More...