Enjoy the current installment of “weekend reading for financial planners” – this week’s edition kicks off with several recent industry tracking studies, including one showing that RIA assets continue to grow (but those serving individual investors continue to be dominated by a large volume of “small” advisory firms with less than $1B of AUM and fewer than 10 non-clerical employees), and another examining fund flows data and finding that advisors are not eschewing actively managed funds altogether, just high-cost funds – as both ETFs, and low-cost active funds (with expense ratios under 20bps) are experiencing positive inflows!
From there, we have a few technical articles, including: strategies to plan around the Medicare Part B and Part D surcharges for those with high income; how the growth rate of college tuition has actually been in steady decline for a decade (and last year was actually in-line with the general level of inflation); ways to use trusts to shelter (and tax-manage, and asset-protect) investment real estate; and a primer on how annuity mortality credits really work.
We also feature several practice management articles this week, from a look at how to develop the “other” career track in advisory firms (for administrative and operational employees), to why it’s crucial to develop career tracks and provide promotions based on performance and skill attainment (and not just based on tenure), and why businesses (both advisory firms and in other industries) often start to “break” as they cross 25 employees, and have to adjust to the dynamics of being a larger business.
We wrap up with three interesting articles, all looking at mindset issues in what it takes to be financially successful: the first looks at a recent Journal of Financial Planning study, which finds that more affluent households tend to take more financial risks, but only because they also tend to better understand those risks (and take them prudently) in the first place; the second discusses some of the “habits” of the affluent that appear to bolster their wealth accumulation and financial success; and the last examines Warren Buffett’s recent statement that his future successor must not only be smart, but have a “money mind”, and explores what it really means to have a money mind.
Enjoy the “light” reading!
source https://www.kitces.com/blog/weekend-reading-for-financial-planners-aug-5-6/?utm_source=rss&utm_medium=rss&utm_campaign=weekend-reading-for-financial-planners-aug-5-6
No comments:
Post a Comment