Weekend Reading For Financial Planners (August 23–24)

Online Research Plays Major Role In Advisor Selection For Prospects (Even When Referred): Survey

(Brian Thorp | Wealthtender)

While financial planning often centers around face-to-face communication prospects or clients and their advisors, tech tools can play an important role throughout this process, from helping prospective clients identify the best advisor for them to facilitating communication once they become a client. That said, many advisors looking to grow their firms might wonder about the best balance between 'offline' tactics (e.g., client referrals) or 'online' tools (e.g., investments in their website).

According to a survey of 500 U.S. adults with household incomes over $100,000 who plan to hire a financial advisor within the next five years by advisor discovery and digital marketing platform Wealthtender, while referrals from friends and family are the top-cited resource used to find an advisor (62%), 96% of respondents said that they plan to do additional research on the advisor after being referred to them, suggesting that an advisor's online presence can encourage prospects from taking the next step to becoming a client. Such actions include researching the advisor's reputation online (e.g., online reviews), cited by 83% of respondents and visiting the advisor's website (72%). When considering an advisor's reputation, top factors cited by respondents included transparency in fees and services (73%), professional certifications and credentials (63%), and positive online reviews on an independent website (61%), among other areas.

Amidst the increasing use of advisor technology tools that incorporate Artificial Intelligence [AI], the survey asked respondents about their comfort with an advisor using AI tools for various functions. Areas with greater comfort included monitoring for unusual activity to protect accounts from fraud (with 77% being either very or somewhat comfortable), analyzing market data to inform investment recommendations (74%), recording and transcribing meetings for notetaking and accuracy (74%), and identifying tax-saving opportunities and optimizing tax strategies (72%). One outlier function in the results was making automated investment decisions (e.g., buying or selling assets) without direct human oversight, for which only 45% of respondents expressed comfort.

In sum, the results of this survey suggest that advisors who combine a personal approach (e.g., encouraging client referrals, making personalized recommendations based on client needs) with an online presence that makes it easy for clients to learn about their reputation and their client value proposition (and perhaps leverage the particular strengths of AI while leaning into their own strengths as a human advisor) could be well-positioned to attract additional prospects and convert more of them into clients in the years ahead.

Survey Indicating Social Security Worries Haunt Americans Planning For Retirement Suggests Valuable Role For Financial Advisors

(Karen DeMasters | Financial Advisor)

Social Security benefits make up a significant portion of income for many retirees (and a reliable source of inflation-adjusted income for others), so the continued ability of the program to make full benefit payments is analyzed regularly. And while the bulk of the funds needed to pay Social Security benefits come from payroll taxes from current workers, in recent years the program has had to dip into its trust fund in order to cover the full benefits owed, sparking copious headlines about the sustainability of the system (and leading many working Americans to question whether they will receive any benefits at all when they retire).

According to a survey of more than 10,000 U.S. adults sponsored by the Transamerica Institute, 70% of working-age respondents said they are concerned that Social Security will not be there for them when they are ready to retire. Which is likely particularly concerning to this group, as 69% of respondents expect to rely in part on Social Security and 32% expect it will be their primary source of retirement income, with 70% saying they feel like they can work until retirement and still not save enough to meet their needs. The potential burden of reduced benefits (in the [perhaps unlikely?] event that no action is taken to shore up the system before the trust fund is expected to be depleted in the early 2030s), appears particularly acute for women nearing retirement, who were more likely to report that they will rely on Social Security as their primary source of retirement income (36% versus 27%), though this might actually be an undercount as almost 60% of women and 47% of men who are currently retired said that Social Security is their primary source of income.

Ultimately, the key point is that while many financial planning clients will have amassed sufficient wealth to not rely on Social Security as their predominant source of income in retirement, many might still be concerned that they will not receive their scheduled benefits and be forced to rely on income generated from their portfolio. Which offers an opportunity for advisors to both educate clients on the 'true' state of the Social Security system (i.e., that even if the trust fund is depleted, the system would be able to pay out more than 70% of scheduled benefits based on payroll tax revenues) and help them understand what different futures could mean for their benefits (e.g., possible legislative changes to cost of living adjustments, benefit calculation formulas, and other measures) as well as how their income might be affected during their working years (e.g., if Congress adjusts the payroll tax or raises the Social Security tax wage cap).

RIA M&A Reaches Fresh High As New Acquirers Enter Market: Fidelity

(Sam Bojarski | Citywire RIA)

The number of RIA Merger and Acquisition (M&A) deals reached a record-high of 272 in 2024, according to RIA M&A consultancy DeVoe & Company, with many Private Equity (PE)-backed buyers scooping up smaller firms (accounting for 72% of all transactions) and acquirors benefiting from a cooling of interest rates. Nonetheless, entering 2025, questions remained as to whether this brisk pace would continue, particularly as firms faced a volatile equity market during the first half of the year (which could have put deals on the backburner given the need to turn attention inward towards client service during this period).

Nonetheless, according to Fidelity's biannual M&A review, the first half of 2025 saw 132 RIA M&A transactions (representing $182.8 billion in client assets), the highest total number of deals on record since Fidelity began tracking these figures in 2015. The median selling firm size in these deals was $517 million, in line with the trend over the past decade. Notably, while serial acquirers such as Focus Partners Wealth (which led the pack with 16 deals in the first half of the year), Merit Financial Advisors (13), Wealth Enhancement (11) and Mercer Advisors (11) have continued their hot pace of deals in 2025, a total of 64 unique buyers made transactions during this period, including 16 new entrants (reducing the share of transactions by the top 20 acquirers tick lower from 65% to 60% over the past two years). Looking ahead, Fidelity expects the pace of dealmaking to be driven by the supply of selling firms, as there appears to be significant remaining demand from (often private equity-backed) buyers.

In the end, RIA M&A activity appears to be continuing at a robust pace, with interest from both buyers looking to continue to scale and sellers interested in growing within a larger firm, alongside traditional succession- and liquidity-related drivers. Though it's notable that when the economics of advisory firms remain strong, internal succession does appear to remain a viable option in the current environment as well for founders who would prefer their firms remain independent after they retire, especially as next-gen advisors now have an increasing range of available financing options to allow them to pursue firm ownership without necessarily putting significant strain on their personal financial situation (but they still have to have the risk tolerance to take on a multi-million-dollar debt to pursue the opportunity!).

7 Steps To Estimating In-Retirement Cash Flow Needs

(Christine Benz | Morningstar)

One of the most common 'pain points' for individuals to seek out a financial advisor is determining when they might be able to retire and how much they can afford to spend in retirement. Many have likely seen rules of thumb, such as that they will need to be able to generate enough income to replace 80% of their pre-retirement salary. However, advisors can offer value by helping these prospects and clients drill down to more accurate retirement spending estimates given the individual's unique circumstances (which might lead to a much higher or lower income replacement rate).

A first step is to determine a realistic baseline for income at retirement. While individuals who are only a few years away from retirement might be able to use their current incomes, increasing this figure will likely be necessary for younger individuals, particularly those who expect additional raises or promotions before they retire. Next, the advisor can subtract the individual's savings rate (with those saving a higher percentage of their income during their working years often having a lower income replacement rate), as they will no longer be saving once they enter withdrawal mode.

Another set of adjustments include certain tax reductions (e.g., the individual won't be paying payroll taxes in retirement and might be in a lower tax bracket thanks in part to greater control over their taxable income), anticipated housing-cost reductions (e.g., if their mortgage will be paid off or if they plan to downsize upon retirement), and possible reductions in lifestyle costs (e.g., commuting or other work-related costs), though these can be balanced against potential lifestyle spending increases (e.g., travel) in retirement. Also, adjusting health care expenditures might be necessary as well to reflect the likelihood of needing additional medical care with age (particularly in the later years of retirement). Finally, given the uncertainty of an individual's future spending needs (e.g., a need for extended long-term care), an increase in the income-replacement rate to serve as a "fudge factor" could be in order.

Ultimately, the key point is that while the course of a particular retiree's spending is inherently unknown, financial advisors can support clients by improving on rules of thumb and creating an income replacement figure based on their actual spending and savings patterns, while still leaving room for potential changes as the clients actually experience retirement.

Scheduled End Of Enhanced ACA Subsidies Could Hike Costs For Early Retirees, Among Others, Next Year

(Elizabeth O'Brien | Barron's)

The One Big Beautiful Bill Act (OBBBA) extended many tax rules individuals had gotten used to over the past several years (e.g., lower Federal income tax brackets) while making changes in other areas (e.g., in college financing and student loan planning), leading to a variety of planning opportunities for financial advisors and their clients.

One area that the bill didn't address is the pending expiration of enhanced Affordable Care Act (ACA) health insurance premium subsidies enacted amidst the COVID pandemic. The expiration of the enhanced subsidies (which is slated for the end of the year, absent Congressional action) would lead to increased premiums for those on ACA plans, including retired clients using them until they reach Medicare eligibility age. According to an analysis from the Center on Budget and Policy Priorities, expiration of the enhanced premium subsidies would lead to an average annual premium increase of $700, though older adults would face bigger premium hikes since insurers are allowed to charge them more for coverage. Expiration of the enhanced subsidies would also mean the return of the "premium cliff" where individuals could be subject to dramatic premium increases if their income exceeds 400% of the Federal poverty level and their benchmark premiums exceed 8.5% of their household income (e.g., a 60-year-old couple making $82,000 [just over 400% of the Federal poverty level] would see their premiums more than triple, from $581 to $2,111 for an annual increase of $18,400, according to the analysis).

In sum, the potential end to the enhanced subsidies would mean that clients with ACA policies could see their health care expenses increase in 2026 and beyond. Which provides a potential opportunity for financial advisors to offer hard-dollar value not only by helping clients identify the best health insurance solution for their needs but also by helping them control their income in order to avoid a "premium cliff" and mitigate the potential premium increases they could face.

Reframing Risk In Retirement As "Over- And Under-Spending" To Better Communicate Decisions To Clients, And Finding A "Best Guess" Spending Level

(Justin Fitzpatrick | Nerd's Eye View)

Over the past few decades, advisors have used Monte Carlo analysis tools to communicate to clients if their assets and planned level of spending were sufficient for them to realize their goals while (critically) not running out of money in retirement. More recently, however, the Monte Carlo "probability of success/failure" framing has attracted some criticism, as it can potentially alter the way that a client perceives risk, leading them to make less-than-ideal decisions. In reality, retirees rarely experience true failure, and instead find that they may need to adjust their spending (in both directions!) in order to meet all of their goals. A potentially simpler way to talk about "retirement income risk" relies on the concepts of overspending and underspending, which can help both advisor and client better understand the trade-offs inherent in the ongoing decisions around spending in retirement.

Determining whether clients are overspending or underspending during their working years is relatively straightforward and is simply a matter of observing if they are spending more or spending less than they make. However, once the client retires, the "how much they make" part of the equation becomes much less clear. But by accounting for all of a client's income sources and balancing them against their various spending goals with a set of future assumptions around such factors as life expectancy and market performance, the advisor can arrive at a "best guess" answer to the question of how much the client should be spending. From a mathematical standpoint, that best guess is the level at which a client is equally likely to overspend as they are to underspend. Yet, in the Monte Carlo success/failure framework, that balance point exactly represents a 50% probability of success, which seems intuitively 'wrong' given that the analysis targeted the precise spending level that would preclude both overspending and underspending!

The Monte Carlo success/failure framing, in essence, focuses only on minimizing the risk of overspending, hiding a bias towards underspending by calling it a "success". Or, put another way, a 100% probability of success is exactly a 100% probability of underspending. Which means that solving for higher probabilities of success generally necessitates underspending to the point where clients, while comfortable knowing that they almost certainly won't run out of money, may have to significantly revise their desired expectations for their standard of living. By contrast, the overspending/underspending framework allows advisors to mitigate the Monte Carlo bias toward underspending while using concepts that clients are already familiar with. For instance, an advisor might communicate that their job is to help the client find a spending level that balances their goals of living the life they want while not depleting their resources.

Helping a client determine a balanced spending level in retirement is only the beginning of the journey. As time goes on, odds are that various factors (including circumstances, expectations, market returns, and inflation, to name just a few) will require spending levels to be adjusted. And by relying on the overspending/underspending framework, advisors can communicate how clients will be able to make those adjustments over time and, in the process, minimize the biases that incentivize lower spending that ultimately prevent them from living their lives to the fullest!

How One Advisor Generated 35 Leads On LinkedIn In 6 Months (Without Spending On Ads)

(Kendra Wright | Rebel Media)

Social media can be a tempting way for advisors to reach prospective clients, given that posting is free (at least in terms of hard-dollar cost) and that many advisors are spending time there anyway. However, engaging on social media without a defined strategy can lead to inconsistent posting schedules and a lack of engagement (and results) for the time invested.

Working with an advisor who was posting inconsistently across multiple channels, Wright first recommended that he engage in "channel focus" (i.e., choosing a primary marketing channel and going all-in on building one marketing funnel for their firm around that channel). After deciding to focus on LinkedIn, the advisor focused his posts on content targeted to his ideal target client (rather than more general personal finance topics) and engaged in deeper storytelling (e.g., case studies and examples with hypothetical numbers instead of dry descriptions of planning strategies). He also improved the consistency of his posts, showing up on LinkedIn daily to stay top of mind with his ideal clients. In addition, he actively seeks out individuals who match his ideal client profile to further expand his reach. Together, these efforts led to more than 35 inbound leads in the first six months of 2025 and a close rate of approximately 50% (indicating that he's attracting qualified prospects).

In sum, successful advisor marketing doesn't require being active in as many spaces as possible, but rather can be a function of finding alignment between the advisor's strengths and their chosen tactic, narrowing in on one platform (and one ideal client type) to target, and creating engaging content targeted at this group's needs. Which not only can be a more sustainable approach (given that the advisor's attention won't be spread in different directions) but a more profitable one as well (as they target individuals who are most likely to be qualified [and interested] prospects!).

Advisors Eye Up Instagram's Millions Of Users

(Griffin Kelly | The Daily Upside)

When it comes to using social media to attract clients, the platforms that first come to mind might be LinkedIn, Facebook, or X (formerly Twitter). One site that might be less-used for professional purposes (while possibly being the app of choice for personal content) is Instagram.

However, some advisors are using Instagram to capitalize on its capabilities and build their brands. Given that many posts on Instagram fall into the (broad) category of lifestyle content, it can be a good place for advisors to post pictures to show their personality and let prospects and clients get to know them better. In addition, advisors are also using the platform to post finance-related content as well (e.g., videos of them discussing topics important to their target client while in a more casual setting than their office). Notably, doing so can have a double benefit of establishing the advisor's credibility (particularly if the material is geared to their ideal target client, who also frequents Instagram) and combating the steady flow of more dubious financial information that can be found on the site.

In the end, because successful social media marketing is in part a function of meeting an advisor's ideal target client "where they are", those whose clients are likely to be heavy Instagram users could find that spending time engaging on the site (in line with relevant compliance requirements) could pay off by helping prospects see who the advisor is in 'real life' and how they can help the prospect live their best life through financial planning.

Going Local: How Advisors Can Turn Their Community Into Their Most Valuable Niche

(Brady Lochte | Advisor Perspectives)

Thanks to advances in technology, it's easier than ever for advisors to serve clients around the country (or even around the world). Which has led many advisors to use social media and other platforms to tap into the (much larger) number of prospective clients who live outside their local area.

Nevertheless, Lochte argues that putting in effort to pursuing clients locally can pay off. To start, by focusing on clients in a certain geography, the advisor can more easily become an expert in many of the areas that can affect their finances, from the local housing market to tax laws and the job landscape (which is much more challenging when clients are spread across the country) and show the clients they truly 'get' the circumstances they're facing (as the advisor will likely be living them too!). When marketing to local clients, several 'old school' tactics can come into play, from sponsoring local events or leading charity drives to writing a column for the town's newspaper, offering live seminars, and partnering with local centers of influence (e.g., estate attorneys and realtors).

Notably, marketing to a local audience doesn't mean that an advisor has to eschew digital marketing channels. For instance, local Search Engine Optimization (SEO) can help advisors rise to the top of the ranks when someone in their community performs the (frequent) search for "financial advisor near me". In addition to claiming the firm's Google Business Profile, posting content on local issues (e.g., "what local real estate trends mean for your purchasing power") can help the advisor be seen as an expert, both by search engines and interested individuals in the area.

Ultimately, the key point is that at a time when many advisors are looking to digital marketing strategies to extend their reach to potential clients around the country, serving a 'niche' of local clients remains a viable way to grow a profitable advisory business, particularly if an advisor is willing to dig deep into the issues that are most likely to impact their local clientele.

7,000-Step Sweet Spot Cuts Risk Of Early Death By Nearly Half

(Michael Franco | New Atlas)

While it's widely accepted that more physical activity is associated with better health, there is often conflicting guidance (given the limited number of hours available to exercise) as to how much activity is 'enough'. For instance, the notion that walking 10,000 steps per day has been widely touted as a (perhaps challenging for the time-constrained) way to significantly improve one's health.

However, a recent study from researchers at the University of Sydney suggests that hitting the 10,000-step mark might not be necessary to gain significant health benefits. Looking at data from 57 studies carried out between 2014 and 2025 in 10 countries, the researchers looked at the health outcomes of taking 2,000 steps per day and then moved up in 1,000-step increments and found that walking 7,000 steps each day reduced the risk of all-cause health-related mortality by 47% compared to those who took 2,000 steps – a similar reduction compared to those walking 10,000 steps per day. Those who took 7,000 steps had a 38% reduced risk of developing dementia (while 10,000 steps provided an additional 7% reduction), a 25% lower risk of cardiovascular disease occurrence and a 47% reduction in associated deaths. And while those who took 7,000 steps didn't show a statistically significant reduction in cancer incidence, the group did see a 37% reduction in cancer mortality compared to the 2,000-step group.

Altogether, this study suggests that while any increase in movement is beneficial for one's health, walking 7,000 steps appears to be a 'sweet spot' where significant health gains are achieved, with further steps offering diminishing returns. Which could serve as inspiration for those who might be intimidated by the loftier 10,000-step count!

Analysis Suggests It's Never Too Late To Get Benefits A More Active Lifestyle

(Science Daily)

While many individuals were physically active in their youth, the rigors (and time commitments) of adulthood can sometimes lead to reduced activity (and the poor health outcomes associated with it). And while some individuals might be interested in starting (or restarting) greater physical activity, they might wonder whether it might be too late for them to gain the health benefits exercise can offer.

According to a systematic review published in the British Journal of Sports Medicine of 85 studies, while being consistently physically active in adulthood is linked to a 30%-40% lower risk of death from any cause in later life, those increasing their activity from lower levels saw a 20%-25% lower mortality risk and those who switched from being physically inactive to being active had 22% lower all-cause mortality compared to those who remained inactive (though the researchers noted some limitations with the underlying studies, including that most relied on subjective assessments of physical activity). The health benefits of an active lifestyle were particularly noticeable for cardiovascular disease, with somewhat more inconclusive results for the risk of death from cancer.

In sum, the health benefits available from being physically active don't only go to those who have been able to maintain a consistently active lifestyle, but also can accrue to those who achieve incremental gains from lower levels of activity. Which suggests that it's not too late for those who have let their physical activity lapse to improve their health for the long run!

6 Ways To Build A Consistent Exercise Routine

(Danielle Friedman | The New York Times)

For busy individuals looking to lead an active lifestyle, being able to exercise consistently can be a challenge (as it's ever-tempting to skip a day…or two). Nonetheless, a variety of 'nudges' are available that can promote more consistent exercise habits.

One option is to find an 'accountability partner'. This could be an individual who is more committed to exercising (with one experiment finding that participants who struggled to work out saw significant improvement when they connected with a regular gym-goer) or with an individual who is less experienced (as giving advice not only makes oneself accountable to the recipient but also reinforces one's own commitment by verbalizing how or why they exercise. A related area of human accountability is to forge a relationship with a fitness instructor or trainer, which can provide "social accountability" to show up at designated times. More internal-based ways to encourage a more consistent exercise habit include pursuing a major milestone (e.g., signing up for a running race), leveraging visual cues or reminders (e.g., marking off dates on a calendar), or using an app that offers rewards (e.g., discounts or charitable donations) for maintaining certain fitness goals.

Ultimately, the key point is that while it might be easy to understand the benefits of exercise, actually following through on a desire to be more active can be tough. Which suggests that finding the 'right' motivator (whether it's a human accountability partner or a major goal to target) could mean the difference between a haphazard approach to exercise and a more consistent physical routine!

---

We hope you enjoyed the reading! Please leave a comment below to share your thoughts, or send an email to [email protected] to suggest any articles you think would be a good fit for a future column!

In the meantime, if you're interested in more news and information regarding advisor technology, we'd highly recommend checking out Craig Iskowitz's "Wealth Management Today" blog.