Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that credit ratings agency Fitch on Tuesday downgraded its assessment of the U.S. government’s creditworthiness from an AAA rating to AA+. While the downgrade has made headlines and might be startling to advisory clients (particularly those with significant portfolio allocations to U.S. Treasury securities), some observers suggest that the factors cited by Fitch for the downgrade (from the growing national debt to the recent debt ceiling standoff in Congress) do not necessarily portend a default, at least in the near term.
Also in industry news this week:
- RIA M&A activity fell in the second quarter compared to the same period last year amid rising financing costs, though continued private equity interest in the RIA space could help buoy deal volume going forward
- According to a recent survey, RIAs appear to be taking a defensive approach toward the SEC’s new marketing rule, with many firms changing their marketing materials to be in compliance with its provisions and few firms expanding their use of client testimonials and other opportunities offered by the rule
From there, we have several articles on advisory firm hiring practices:
- A recent study explores what new advisors are looking for from their firms and how training and mentorship programs could play an important role in boosting advisor retention rates
- Why crafting an applicant-centric job posting and casting a wide net across hiring platforms can help firms boost the number of qualified candidates they attract when looking to add talent
- Tactics firms can use to attract a more diverse pool of job applicants and the potential business benefits of doing so
We also have a number of articles on retirement planning:
- Why common advisor concerns about Monte Carlo analysis are more about the software tools they use rather than the technique itself
- How advisors might be underestimating the longevity of their clients, particularly those who are healthy and have already reached retirement age
- A research study suggests that “psychological ownership” and loss aversion could be driving many individuals to claim Social Security benefits early despite the potential financial downsides of doing so
We wrap up with 3 final articles, all about workplace culture:
- How individuals tend to underestimate how much their colleagues, friends, and partners want their feedback
- Why understanding and leveraging employee work style preferences can create more effective teams
- How being intentional and flexible when designing workspaces can promote productivity and wellbeing
Enjoy the ‘light’ reading!
