Enjoy the current installment of "weekend reading for financial planners" - this week's edition kicks off with the big news announcement that risk tolerance software maker Riskalyze has raised a whopping $20 million Series A round to fuel its continued growth. Also in the news this week was the announcement that Morningstar has formally launched Analyst Ratings on ETFs (to complement its ratings on mutual funds), and that the latest data from the SEC shows it is still struggling to materially improve its examination rate of investment advisers, because the ranks of the RIA community are growing faster than the SEC's ability to scale up its exams!
From there, we have several practice management articles, including: the challenging "walls" that advisory firm owners must clear in order to transition from "small" solo practices into mid-sized businesses; why defining a niche is about more than just stating you work with a certain type of clientele, and instead is about explaining the unique outcomes you can create for those clients; and a look at how the latest DoL fiduciary FAQ could lead to cuts (or at least potential changes) to the typical broker-dealer grid payout system.
We also have a few more technical planning articles, from a look at how to help clients understand their longevity risk (and why typical life expectancy statistics understate their risk of outliving their money), to a discussion of the favorable tax rules for a personal residence (from the mortgage interest deduction to the capital gains exclusion), and why prenup agreements are becoming increasingly popular for young professional couples.
We wrap up with three interesting articles: the first looks at how the focus of financial planning is shifting from helping clients maximize their dollars and their Return On Investment (ROI), and instead is about helping clients live a better life with the dollars they have (improving their "Return On Life"); the second is a reminder that there's a fundamental difference between being a financial advisor salesperson and a client-centric professional (even if you're a salesperson who tries to do the right thing for clients); and the last is a powerful call to the financial planning profession that its time to step away from the broader financial services industry and find our own place in the world... at least, if the industry and its product manufacturers are willing to let go.
And be certain to check out Bill Winterberg's "Bits & Bytes" video at the end, which this week includes coverage of the latest Schwab technology roadmap, Riskalyze's $20M Series A funding, the announcement that SS&C (owner of Black Diamond) has acquired Salentica CRM, and TD Ameritrade's acquisition of Scottrade (including Scottrade Advisor Services) and the rollout of TDA's new "robo" solution Essential Portfolios!
Enjoy the "light" reading!