Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey of RIA employee compensation and wellbeing found that advisors appear broadly satisfied with their jobs and (perhaps unsurprisingly) identified a positive correlation between income and happiness at work (though separate research suggests other factors might contribute more to advisor wellbeing). The survey also demonstrates the potential income upside for advisory firm employees who advance in their firms, with CEO respondents reporting average total annual compensation (including salary, cash bonuses, and non-cash compensation) of more than $900,000 (client-facing advisors surveyed had strong earnings as well, with average total compensation of more than $400,000). Altogether, while the pool of respondents was somewhat limited (and appears to skew senior in rank), the survey suggests that financial advice can be a lucrative career, in terms of compensation, a sense of meaning, and overall wellbeing.
Also in industry news this week:
- While the latest iteration of Republicans’ major tax legislation does not restore financial advisory fees as a potentially deductible expense, a coalition of organizations continue to push for it to be added to future legislation
- Charles Schwab announced this week that it is launching a program to help breakaway advisors launch and grow an independent RIA, offering a new option in the market of ‘supported independence’ platforms
From there, we have several articles on retirement planning:
- How Treasury Inflation-Protected Securities (TIPS) can help mitigate inflation risk and maintain a client’s purchasing power throughout retirement
- Comparing the relative and disadvantages of creating a TIPS ‘ladder’ versus investing in a TIPS index fund and how advisors can identify which types of clients could benefit from each
- How combining a single premium immediate annuity with a TIPS ladder can help mitigate both longevity and inflation risk for a client
We also have a number of articles on practice management:
- Why seeking a ‘specialist’ to fill specific firm needs can often lead to better results for more mature advisory firms than hiring a talented generalist
- Considerations for firm founders who are considering hiring their child into the business, including the need to ensure buy-in from key stakeholders
- How RIAs can launch effective internship programs, from creating a position that offers the opportunity to perform meaningful work to providing mentorship opportunities to interns
We wrap up with three final articles, all about how to be a better listener:
- Four techniques to be a better listener, including the skill of seeking to summarize what a speaker is saying rather than immediately identifying a solution
- How interjections such as “huh?” and “mmhmm” can help guide conversations and demonstrate that an individual is paying attention to what a speaker has to say
- Techniques for getting back on track when a conversational partner has zoned out
Enjoy the ‘light’ reading!
