Enjoy the current installment of “weekend reading for financial planners” – this week’s edition kicks off with the news that the SEC has indicated it is beginning work on its own fiduciary proposal that would harmonize the standards of conduct for investment advisers and broker-dealers (and between the SEC and the DoL), though it remains to be seen how long it will really take for the SEC to even propose, much less adopt, its own fiduciary standard. Also in the news this week is a proposal from FINRA to make more information available to consumers via BrokerCheck, and a growing momentum for broker-dealers to adopt the NASAA Model Fee Disclosure that would give consumers a consistent set of clear disclosure documents about all the various fees and charges that broker-dealers may assess besides standard trading commissions or advisory fees.
From there, we have several practice management articles, including: a look at how to better vet potential technology solutions and avoid or minimize redundant technology (which ends out making the advisor pay twice for the same solution!); tips on potential tax deductions that advisory firms should bear in mind for themselves; and a fascinating look at the future of financial advisors and the shift to the RIA model from industry leader Mark Tibergien.
There are also several more technical planning articles this week, from a reminder that now is a good time to start doing “Medicare annual reviews” with retirees (as the Medicare Open Enrollment season opens later this month), to guidance from Ed Slott about how to take advantage of the “still working” exception to RMDs from a (current) employer retirement plan, and the news that the Treasury will be withdrawing the proposed Section 2704 regulations that would have imposed a major crackdown on Family Limited Partnership (FLP) discount strategies and providing a green light to the planning technique for now (at least until/unless the Democrats regain control in Washington and potentially reassert the crackdown in the coming years?).
We wrap up with three interesting articles, all around the theme of the social issues and challenges of having substantial wealth: the first is a look at the psychology research about why, exactly, we so often “hate” the super-wealthy, and why animosity towards wealth is so common; the second explores how, in part because of the challenging social dynamics around wealth, many wealthy individuals go to great lengths – often subconsciously – to rationalize and even downplay their wealth to reduce the social discomfort; and the last examines the fears that parents often have if they have the financial wealth to retire early but worry about the example that “not working” may set for their children… although the reality seems to be that, as long as the parents stay engaged and clearly communicate the reason that they’re not working (i.e., their prior business/financial success), that doing so, and having more time to be involved in their kids’ lives, just helps to deepen the relationship and good example that they can set for their children!
Enjoy the “light” reading!
source https://www.kitces.com/blog/weekend-reading-for-financial-planners-oct-7-8/?utm_source=rss&utm_medium=rss&utm_campaign=weekend-reading-for-financial-planners-oct-7-8
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