Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent study indicates that amidst various ‘challenges’, financial advisor pricing power remains strong, with advisors charging on a retainer or subscription basis seeing particularly large fee increases during the past three years. Nonetheless, the related survey found that advisors are growing increasingly wary of potential competition from AI-powered tools but appear to be responding by building stronger multi-generational ties within client families and increasingly serving those with emerging wealth.
Also in industry news this week:
- A study finds that AI chatbots frequently give incorrect or incomplete answers to questions asked by high-net-worth clients, potentially putting advisors in the position of correcting assumptions of prospects and clients who use these tools
- By using alternative benchmarking assumptions, a study finds that the gap between investor performance in passive and active equity funds narrows significantly (while investments in actively managed fixed-income funds are found to have an advantage over those in their passive counterparts)
From there, we have several articles on tax planning:
- Five ways financial advisors can help their clients avoid tax penalties in the coming year
- How the information contained on 1099-DIV forms can help advisors craft tax planning recommendations that result in hard-dollar savings for their clients
- How the flexibility of tax withholding from retirement account distributions can help clients avoid tax penalties while keeping their money invested for longer and postponing tax withholdings until later in the year
We also have a number of articles on education planning:
- Why one financial planning expert isn’t using 529 plans to save for his kids’ future education needs, preferring instead to use taxable accounts
- Why 529 plans are more flexible and offer better treatment for financial aid calculations than certain other education saving alternatives
- A comparison of the pros and cons of 529 plans and Roth IRAs for college savings (and why it’s likely not an either/or savings decision for many clients)
We wrap up with three final articles, all about travel planning:
- Airplane ticket prices have risen amidst a jump in the price of oil during the past couple months, though continued strong demand, amongst other factors, could mean elevated prices continue even if oil prices decline
- How to get the most out of a trip to the museum, from what to pack to how to avoid “gallery fatigue”
- An examination of AI chatbots’ travel-planning capabilities finds that while they can recommend thoughtful itineraries, a human touch might be preferred for more a more bespoke travel experience
Enjoy the ‘light’ reading!
