Weekend Reading For Financial Planners (August 22–23)
Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the recent termination of an editor at Forbes over a payment received from the founder of a company it worked with to produce “best advisor” rankings brings to light that such lists are quite subjective and could be big business for those that create them (and potentially influence who is selected for them, given that awardees are given the option to pay to publicize the recognition in various ways). Nonetheless, given that such rankings can be a way for advisors to differentiate themselves in a competitive marketplace for advice, making prospective clients aware of this recognition (in compliance with the SEC’s marketing rule) could be a way to stand out (though if they are paying to do so, the potential return on such outlays could be compared against other marketing tactics?).
Also in industry news this week:
- A recently acquired document indicates that SEC examiners are looking for evidence of ‘AI-washing’ and sufficient training of those using AI tools during recent examinations of RIAs
- CFP Board this week published a guide outlining how CFP professionals can engage in retirement plan rollover conversations (that can involve significant conflicts of interest for the advisor) while fulfilling their fiduciary responsibilities
From there, we have several articles on tax planning:
- How financial advisors can help clients avoid a tax surprise when it comes to receiving employer Roth 401(k) contributions
- Why receiving a “contemporaneous written acknowledgement” from the recipient is crucial in order to receive a charitable deduction for gifts valued at $250 or more
- Why clients and their advisors might consider potential IRMAA surcharges when evaluating the timing of the sale of a home that will result in a taxable capital gain
We also have a number of articles on estate planning:
- How conducting an annual account beneficiary check-up with clients can be a highly valued advisor service
- Why ethical wills can be a key part of communicating an individual’s legacy to loved ones
- The benefits available to clients of identifying a trusted contact (and how they differ from a power of attorney)
We wrap up with three final articles, all about spending:
- While a body of research indicates the benefits of ‘trading’ money for more time, this decision can come with psychological weight
- Why a certain level of ‘lifestyle creep’ could be worthwhile to better enjoy life in middle age and to flex the spending ‘muscle’ before retirement
- How an individual’s spending rate is a key input to analyzing their ability to save and meet future financial goals but can be hard to compare to others’
Enjoy the ‘light’ reading!
