Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a study from the American College of Financial Services finds that advisors with advanced expertise in areas such as tax and retirement income planning tend to serve more wealthy clients than those with less advanced skills. Notably, the study also found no relationship between years of experience and expertise level. Which suggests that relatively newer advisors and those looking to stand out for their ideal client type could benefit from sharpening their skills in key areas to offer a deeper level of planning expertise to (potentially wealthier) clients!
Also in industry news this week:
- The North American Securities Administrators Association (NASAA) this week adopted amendments to bring four of its model rules in line with the SEC’s marketing rule, a key step towards leveling the playing field for state-registered RIAs with their SEC-registered counterparts when it comes to using testimonials, endorsements, and specific performance reporting in their marketing
- A state report indicates that dozens of RIAs, amongst more than a hundred financial services firms in total, have experienced data breaches during the first four months of the year, as advancing artificial intelligence capabilities put a further spotlight on the importance of cyber hygiene for advisory firms, including their staff and clients
From there, we have several articles on tax planning:
- A four-step framework for financial advisors to effectively manage client equity compensation
- How advisors can offer significant hard-dollar tax savings for clients by creating an effective Restricted Stock Unit (RSU) sale strategy
- Why leveraging Net Unrealized Appreciation (NUA) rules isn’t always a sure bet and how advisors can offer value for clients by conducting a more personalized analysis
We also have a number of articles on advisor marketing:
- Five ways advisors can help clients make more effective introductions (and drive more good-fit referrals in the process)
- How advisors can reduce any awkwardness around referral conversations and avoid turning clients into (unintentional) salespeople
- Why leaning into value and personalization can help advisors drive referrals from clients in the first few months of the relationship
We wrap up with three final articles, all about greed:
- Why greed can be “good, bad, or ugly” depending on how it’s applied and why generosity could be an antidote to some of greed’s negative side effects
- The benefits of resisting “lifestyle creep” driven by status-driven purchases
- Why those who have already ‘won’ the financial game can sometimes be lured into making bets that come with attractive upside but significant downside potential that could threaten their financial security
Enjoy the ‘light’ reading!
