Enjoy the current installment of “weekend reading for financial planners” – this week’s edition starts off with two good articles from the Journal of Financial Planning: one is a research study that shows how client “money scripts” can predict dysfunctional financial behaviors, and the other provides a nice overview of the current marketplace for long-term care insurance benefits. There are also two good articles from Advisor Perspectives: one by Wade Pfau discussing how the RetireOne “Stand Alone Living Benefit” (SALB) income guarantee works in protecting client retirement income, and the either by Bob Veres challenging our traditional inflation assumptions for retirees based on some research by Jim Shambo. From there, we look at a pair of industry articles, including a discussion of how Merrill Lynch’s new training program is becoming increasingly RIA-like, and how some advisors are beginning to choose to not be in charge and voluntarily take employee rather than employer/business owner roles. There are also two investment articles, one from Nicholas Nassim Taleb (of Black Swan fame) about the concept of market and economic “fragility” and how we need to focus on systems and policies that make us more “antifragile”, and the latest quarterly letter from Jeremy Grantham of GMO which provides an interesting but somewhat bleak outlook for US growth prospects in the coming decades. We wrap up with three practice management articles focused particularly around online marketing: one looks at how most advisors are due for a website update; the second provides some great ideas about how to create more content for your website and get more mileage out of the content you already are creating; and the last is a fascinating article that points out how being too polite, professional and “perfect” online may actually be detrimental to connecting with clients. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with some big announcements from industry associations, including the retirement of NAPFA CEO Ellen Turf next year, and a staff restructuring by the FPA that will result in outsourcing both the organization’s lobbying efforts in Washington and meeting operations for its conferences. From there, we have a few highlights articles from this week’s Schwab IMPACT conference, including a discussion from Bernie Clark that wirehouses are increasingly shifting to an AUM-based model to compete directly with RIAs, and some new technology tools from Schwab including DocuSign e-signatures and the new Schwab OpenView MarketSquare which will provide advisors a chance to provide ratings and reviews on various vendors and service providers to the advisor community. We also look at a recent announcement from the SEC that it has been stepping up enforcement and cracking down on investment advisers, a discussion of how young planners are often choosing to start their own firms or go with large institutions because the independent firms continue to try to hire more experienced planners instead of newer ones, an exploration of what does and does not constitute a niche for financial planners targeting their business, and some thoughts about how the regulatory debate on financial advisors may still be too narrow because it doesn’t capture the conflicts of the financial media. We wrap up with four interesting articles: the first is an article by Angie Herbers about recent research showing what does and does not create client stress, and that often advisors themselves contribute to client stress; the second looks at how "wealth management" is increasingly distinguishing itself as a separate discipline with its own unique body of knowledge; the third is a discussion of how effective data management is not only a matter of efficiency and productivity but also impacts the client experience; and the last is an intriguing interview with LinkedIn CEO Jeff Weiner about leadership and what it really means to be a leader and not just a manager. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a nice article from Financial Planning magazine highlighting the top 25 schools teaching financial planning, including both adult certificate education programs and the rapidly rising number of undergraduate and graduate degree-based programs. From there, we look at a number of practice management articles, including an interesting discussion of whether it’s better to segment clients based not on their assets or wealth but instead by how engaged they are with your financial planning services, a young planner’s "NexGen" look at succession planning as a buyer, a look at how to keep your best new employees rather than driving them away, and a discussion about how if turnover does happen it can still be taken advantage of as a growth opportunity for the firm. From there, we look at a few more technical articles, including a discussion from Texas Tech financial planning professor Michael Finke about how neuroscience research is changing our understanding of how to manage and motivate clients towards their financial goals, a discussion of important caveats to bear in mind for clients looking to create a Spousal Lifetime Access Trust (SLAT) before the end of the year for estate planning, and a discussion from John Hussman that notwithstanding recent data the US may already be entering a recession. We wrap up with three interesting articles, one a look at how FINRA is opening up their arbitration process for (Registered) Investment Advisers that want a less expensive alternative, a list of 31 tips to improve your financial planning firm’s blog, and a discussion about how technology is magnifying the positive results of good managers but also the negative results of bad ones. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a big announcement from the CFP Board, that the current Chair of the Board of Directors and two members of the Disciplinary and Ethics Commission are resigning amid an ethics probe. There’s also another article from the CFP Board explaining their current position on when the fiduciary duty does, and does not, apply to CFP certificants. From there, we have an article on how popular investment bear Gary Shilling is remarkably upbeat and bullish about the financial advising business itself, an article about how young millionaires under age 44 have dramatically higher expectations for digital and social media presence from their advisors, an interview with Behavior Gap artist and author Carl Richards, and an interesting technical article about how to plan for clients’ digital assets. We also have a few investment and retirement articles, including an analysis by Wade Pfau of the new "Stand Alone Living Benefit" (SALB) income guarantee for investment accounts, a study by David Blanchett regarding a new metric and approach to measuring the efficacy of various retirement income approaches, and a discussion from Bob Veres about investment advisor Gary Miller and has rather unique and analytical approach to making investment decisions. We wrap up with two very intriguing articles – one a study that finds that the brain is actually physiologically incapable of both empathizing and analyzing at the same time, and the other a discussion about how setting bold, ambitious, unrealistic goals can actually be the best path to success. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a discussion by compliance consultant Brian Hamburger, suggesting that while the investment adviser world seems to prefer SEC user fees to FINRA as a regulator, it may be better to step back and ask more basic questions about what effective enforcement and the role of regulation should really be in the first place. From there, we look at an array of practice management articles this week, including a discussion of how to protect your firm from fraud, how to better engage clients (and generate more referrals as a result), how to get past the growth wall once you hit it, the problems with micro-managing staff instead of empowering them and getting out of their way, and a look at a new tool to benchmark the compensation of advisors and staff. We also look at a few more technical articles, including a research paper on how to evaluate non-qualified stock option decisions, how to incorporate interior finance issues into your practice and work with clients, and a look and what "endogenous risk" means and how it impacts portfolios. We wrap up with two interesting articles; the first provides a good warning about how advisors can better navigate copyright laws when writing material for their blog or website, and the other is a lighter article on "10 Things Happy People Do Differently" which may not provide any great revelations but may provide some nice reminders for a few of you. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with an interesting analysis of fiduciary history and the CFP Board’s current fiduciary rules for CFP certificants, suggesting that the CFP Board still has a little ways left to go to reach a truly all-encompassing fiduciary standard. From there, we look at an interview in the Journal of Financial Planning with Nobel Prize winner Daniel Kahneman, an exploration by financial planner and researcher Jon Guyton about how the safe withdrawal rate research is holding up for a year 2000 retiree, a study by David Blanchett on the use of variable annuity GMWB riders to support retirement income, a recent study by Harold Evensky (and co-author Shaun Pfeiffer) indicating that active managers may do better in bear markets than bull markets but not by enough to generate consistent alpha over a full market cycle, and a discussion by professor Michael Finke of Texas Tech that the recent Bill Gross article about the "dying cult of equities" may have some validity. There are also a few consumer investment pieces that may be of interest to planners, including a discussion of what "tactical" really means, and some things to watch out for with the recent trend towards managed ETF strategies, along with two strong technical articles, one about new tax planning issues and opportunities tied to the Patient Protection and Affordable Care Act, and the other about how to counsel clients through a short sale or other underwater-mortgage alternatives. We wrap up with an interesting research article suggesting that it’s almost impossible for us to convey that we’re "warm" and "competent" at the same time – instead, the constraints of our language force us to lean in one direction in how we’re perceived, at the direct cost of the other. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a fantastic advice article for young advisors about how to build an optimal path for themselves by being authentic (advice that’s probably relevant for advisors of all ages!), along with an interesting discussion of a "new model" to bring financial planning to the masses, and a discussion of the ongoing "Great Divide" between the veterans of financial planning and the younger people entering the business. From there, we look at a good discussion of compensation trends in the industry, a discussion of the conflict of interest disclosure rules for CFP certificants, and two interesting "lists" from RIABiz – one is a list of the top 10 words that should be expunged from the RIA business, and the other is the top 10 steps that wirehouses could take to reinvent themselves and stem the RIA tide (in the interest of consumers). There’s also a good article with starter tips to improve the SEO of your website (i.e., how easy it is for people to find you using the search engines), and a dissection of last week’s "surprise" unemployment report. We wrap up with two interesting articles; one looks at recent research into investment risk-taking behavior, finding that excessively risky investing may not just be a behavioral bias problem but actually a physiological one; and the other providing an intriguing forecast of how the student debt problem could be resolved in the next decade as online education with a near-zero dollar cost could drastically undercut the pricing of traditional colleges and universities and shift how most people get their higher education. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a recap of the recent FPA Experience national conference, along with a discussion of the latest research from Cerulli suggesting that the declining market share of wirehouses may actually be accelerating even as we become more distanced from the financial crisis, and a nice overview of the current state of fiduciary rulemaking (or lack thereof) from the SEC. From there, we look at Financial Planning magazine’s recent Influencer Awards recognition, a discussion of the FA Insight "Growth by Design" study of how firms are strategically viewing and managing growth, and a wide-reaching interview on safe withdrawal rates from retirement researchers Bill Bengen, Jon Guyton, and Wade Pfau. There are also a few investment articles, including the latest change from Vanguard to further drive down the expenses of ETFs, a recap on the current state and future of actively managed ETFs, and a striking article on asset allocation glidepaths suggesting that rising equity exposure in the years before retirement may actually be more effective than declining equity exposure! We wrap up with a brief article (and associated video) showing how to hide the new "endorsements" feature of LinkedIn (which some have suggested may be a violation of the regulations barring client testimonials), and a profile of a financial advisory firm making an interesting splash in social media with a controversial political video that has generated a whopping 1,000,000 views and 100,000 Facebook fans. Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a response from the CFP Board to the recent challenge about whether their fiduciary standard is "a joke" (not surprisingly, the CFP Board suggests that its standard is no joke), along with an article from the Advisor One blogs by Knut Rostad of the Institute for the Fiduciary Standard suggesting that HighTower Advisors is overstating their lack of conflicts of interest to the detriment of advancing the standard, and another article by Dan Moisand that suggests better regulation of financial planning will ultimately be a necessary step to be fully recognized as a profession. From there, we look at some interesting stats suggesting the fiduciary RIA world is grabbing market share of 401(k) plans just as it has been grabbing market share of retail investment advice, and an article about a planning firm that focuses on career coaching and compensation advice as a core deliverable to clients. There are also a number of technical articles, including a discussion of the emerging investment concept of "risk parity" and why it matters, a look at where and how tactical asset allocation will and won’t work, the apparent underutilization of Section 529 college savings plans by financial planners, an analysis of when tax deferral does and does not make sense. and two deep estate planning articles (one focused on estate tax strategies before the end of the year, and the other on recent legal and tax developments over the past year). We wrap up with a lighter article about the importance of body language and what you may be unwittingly communicating in meetings, along with some advice to help ensure you’re in the right state of mind heading into a (client) meeting (because if you’re not, your body language is going to show it!). Enjoy the reading!
Enjoy the current installment of "weekend reading for financial planners" – this week’s edition starts off with a look at how fiduciary rulemaking progress has slowed so much that any real change may now be years away at best, a discussion of how (despite lack of progress on fiduciary minimum standards) the future of advice may include a small number of mega-firms that are really building a focused, holistic and client-centric approach to advice, and a somewhat disturbing article suggesting that financial planners are becoming a target for cybercrooks that are trying to steal client money by sending advisors fake email transfer requests. From there, we have a few interesting retirement articles, including an interview with Moshe Milevsky, a discussion from Wade Pfau looking at the immediate-annuity-versus-systematic-withdrawal debate, and an analysis of median income for households over the past several decades that shows how retirees are actually faring the best of any age group. We also look at an interesting Journal of Financial Planning article about how to better evaluate cash value life insurance illustrations, a discussion whether it really pays to go to cash waiting for interest rates to rise, and a look from Morningstar at how as more and more people adopt indexing approaches new opportunities may be emerging for active managers. We wrap up with two lighter articles, one with tips on how to get more productivity time back with some good email management tips, and an intriguing discussion of how, in light of the fact that even people who now do what they love often found that path only after a period of time and some difficult early years, "follow your passion" may be bad career advice for Generation Y and that instead we need to paint a more nuanced picture of career paths that acknowledge the (inevitably?) difficult early years. Enjoy the reading!