Enjoy the current installment of “weekend reading for financial planners” – this week’s edition kicks off with the interesting announcement that SEC Commissioner Piwowar will be retiring in early July, a month before the public comment period closes for the new SEC advice rule, and raising the question of whether the SEC may end out deadlocked by the time the comments are in and it’s actually time to deliberate on a final version of the proposed rule!
Also in the news this week was the announcement that Connecticut has passed a law that would allow its municipalities to create charitable entities to fund public services as a way to work around the new cap on the State And Local Tax deduction (and raising the question of when/whether the IRS and Treasury will challenge the strategy, and if it will ultimately end out in front of the Supreme Court), and the news that a new requirement for bond markup and markdown disclosures will take effect next week, in a move that could put new pressure on size of those trading commissions (or not, since the new disclosures only have to be communicated view printed transaction confirmations that not all investors read anyway!).
From there, we have several articles on industry shifts in advisory fees, including a fascinating overview of the various new advisory fee models that are emerging beyond (just) AUM, to the fact that a segment of financial advisors not only aren’t experiencing fee compression but are actually raising their fees, and advice for firms that are struggling with fee pressures about what to do next (hint: it’s all about giving deeper advice and differentiating beyond increasingly commoditized portfolio solutions alone).
We also have a few practice management articles, from tips about how smaller and solo advisory firms can (legitimately) make themselves look more credible in the eyes of prospects, to the benefits of trying to write a book as a financial advisor, and the value of engaging in PR strategies by doing media interviews to expand the visibility and presence of the advisory firm.
We wrap up with three interesting articles, all around the theme of advisor introspection and overcoming challenges: the first is a look back by an advisor who launched her own solo advisory firm 2 years ago, about what it really took to succeed (hint: it’s more about the ability to adapt to challenges than to predict them in advance, and don’t underestimate the importance and value of having a support community around you!); the second provides some tips to pass the CFP exam from someone who unfortunately failed her first attempt (in part by possibly over-focusing on her weak areas, and unwittingly scoring low in an area she thought was her natural strength!); and the last is a good reminder that if we as financial advisors really believe the primary value of advice is not just the information and expertise, but the benefit of having an objective third-party advisor who can view the situation with emotional detachment… that arguably most of us as financial advisors should have our own advisors too (because it’s not just about the informational expertise we already have!), with the added benefit that if you really want perspective on how to improve your financial planning process with clients, you should try going through the process yourself, too!
And be certain to check out the video at the end – a fascinating look at how Will Smith’s journey into becoming the “Fresh Prince of Bel Air” was driven by the failure to hire a financial advisor and make responsible financial and tax planning decisions after his first album went triple platinum, leading him to seek out new job opportunities because he was broke!
Enjoy the “light” reading!
source https://www.kitces.com/blog/weekend-reading-for-financial-planners-may-12-13/?utm_source=rss&utm_medium=rss&utm_campaign=weekend-reading-for-financial-planners-may-12-13
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