Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey of U.S. investors found that while 96% of respondents said they trust their (human) financial advisor, only 29% said they trust algorithms, suggesting that consumers continue to impose a “trust penalty” on algorithmically generated advice. Other key findings from the survey included a gap between long-term investment return expectations of investors and advisors (12.6% and 7.1%, respectively), continued investor concerns about inflation (with 61% ranking it as their top financial fear), and an increased demand for tax planning services (perhaps amidst the potential sunsetting of several measures within the Tax Cuts and Jobs Act), all of which offer advisors the opportunity to add value through proactive communication and technical planning strategies.
Also in industry news this week:
- Under its budget proposal for the fiscal year 2026, the SEC expects to be able to examine 11% of RIAs per year, down from 14% in 2024, as it trims staff throughout the organization
- RIAs lead the way among advisory channels in AI adoption, according to a recent survey, as advisors on the whole see themselves as more knowledgeable about technology.
From there, we have several articles on investment planning:
- How interested financial advisors can evaluate different types of private investments, whose return profiles tend to be more opaque and challenging to analyze compared to publicly traded instruments
- Why one author sees a confluence of factors (including a relatively low cost of capital and a sluggish IPO market) supporting private equity investments in the current economic and market environment
- How advisors can offer value by helping clients understand whether they truly need to take the risks associated with certain alternative investments
We also have a number of articles on marketing:
- Six ways advisory firms can fuel organic growth, from identifying their “loyal client advocates” to giving staff members specific business development roles that align with their strengths
- How advisors can effectively attract and serve women clients, whose wealth has increased significantly and is likely to continue to do so in the coming years
- How demonstrating expertise in helping clients during a specific major life transition (e.g., buying a home or claiming Social Security benefits) can help advisors tap into a potential pool of millions of individuals who face that challenge each year
We wrap up with three final articles, all about Artificial Intelligence (AI) and the workplace:
- Why natural language processing tools (rather than text generation or more advanced “agents”) could be the next big use case for AI in the workplace
- Why professionals whose work is “illegible” (a group that likely includes comprehensive financial planners) will be less likely to see their jobs threatened by AI
- How a new generation of AI-powered tools allow advisors to create their own applications without needing to have coding skills
Enjoy the ‘light’ reading!
