Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the SEC this week fined 4 RIAs for violations of its marketing rule related to their claims that they offered ‘conflict-free’ financial advice. Which means that while many fee-only RIAs use the reduced conflicts that come with the fee-only model (as opposed to firms that receive compensation from commissions and other sources) as a key marketing talking point, the fact remains that being truly ‘conflict free’ is nearly impossible and such claims (which are hard to substantiate) appear to be a step too far when it comes to advertising under the SEC’s marketing rule.
Also in industry news this week:
- A CFP Board study indicates that financial planners with the certification earn 10% more than other advisors and show very high levels of career satisfaction
- A Morningstar study has identified 4 main areas where investors find value from their financial advisors, which might not match an advisor’s own list of top ways they add value for their clients
From there, we have several articles on behavioral finance:
- The behavioral biases that can lead retired clients to over- or underspend and how advisors can support clients in each of these positions
- Why feelings of “disempowerment” could lead retired clients to spend well below their means, and how advisors can help them have more fulfilling retirements
- Why many seemingly wealthy retirees can sometimes have a hard time spending money, from the ‘money scripts’ they learned as a child to previous bouts of acute poverty they experienced earlier in life
We also have a number of articles on practice management:
- Why creating clear lines of communication among management, compliance officers, and firm staff is an important step to ensure employees understand their compliance responsibilities while not feeling overly restricted by compliance requirements
- The key traits of an effective chief compliance officer, from the knowledge needed to identify potential compliance concerns to the communication skills needed to train employees and effectively deal with potential violations
- How (solo) advisory firms can use an annual compliance calendar to organize the many compliance responsibilities they face throughout the year
We wrap up with three final articles, all about college planning:
- 5 common college planning mistakes and how advisors can help clients avoid them
- While they offer a range of tax benefits and, recently, more flexibility, 529 plans continue to only be used by a limited number of Americans, creating an opportunity for financial advisors to discuss their benefits and create a savings plan with clients
- Why a 4-year college degree remains a good deal for many students, with the benefits not necessarily accruing only to those who go to the priciest schools, but rather to those students who make the most of their college experience
Enjoy the ‘light’ reading!
