Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey found that long-feared fee compression in the financial advice industry has yet to come to pass, though some advisors continue to see potential for small reductions in asset-based fees in the future. These results largely match results from the recent Kitces Research Study on Advisor Productivity, which found that the typical fee schedule for firms charging on a graduated basis remains at 100 basis points (bps) for client assets up to $1 million, then declines to 90 bps at $2 million, 75 bps at $5 million, and 60 bps at $10 million in assets. Nonetheless, amidst the potential emergence of artificial intelligence-powered digital planning offerings, advisors who lean into the areas of value that help them stand out from digital competitors and implement a curated offering of high-impact service offerings for their ideal target clients could help insulate themselves from the chance of future industry fee compression.
Also in industry news this week:
- Younger Americans are eager for financial advice (and appear willing to pay for it) according to a recent survey, creating a potential opportunity for advisors who have the wherewithal and capacity to meet their planning priorities (which can differ from older, retirement-focused clients)
- A study of advisors who are moms finds strong career satisfaction among this group, with equity ownership and established career paths among the factors contributing to their satisfaction with their position and firm
From there, we have several articles on retirement planning:
- A mathematical analysis of Roth conversions identifies the factors that can make this strategy more likely to be successful for an advisor’s clients
- Seven reasons advisors might reconsider engaging in Roth conversions for a given client, from having a client who has strong charitable intentions to working with a client who puts a high priority on delaying taxation for as long as possible
- How implementing “conversion cost averaging” or “barbelling” strategies for timing Roth conversions can provide financial and emotional benefits for clients
We also have a number of articles on advisor marketing:
- Six key criteria for effective marketing strategies, from attracting an advisor’s ideal target client to being repeatable
- Marketing ideas for new firm owners who might have a lot of time (but little revenue), including holding in-person meetings to hone their pitch and website optimization
- Key metrics advisors can use to evaluate their current marketing strategy and identify areas to adjust
We wrap up with three final articles, all about giving and receiving feedback:
- 20 tips for providing better feedback, from doing so in a timely manner to being willing to brainstorm potential solutions
- How to recognize “hidden feedback” and uncover the true meaning behind sent by a peer or manager
- Ways professionals can handle feedback like top-level athletes, including focusing on comments from a trusted inner circle to creating a system for implementing it to track self-improvement
Enjoy the ‘light’ reading!
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