Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the North American Securities Administrators Association (NASAA) released the latest edition its annual survey outlining the state of state-registered RIAs, showing that the number of state-registered firms and their assets declined slightly in 2023 (perhaps due to many firms seeing their AUM hit the $100 million mark amidst strong market performance and organic growth and moving up to SEC registration, or being acquired by an SEC-registered firm). Further, the survey showed the continued predominance of the AUM fee model amongst state-registered firms (at the same time, more than half of firms said they charge on a fixed-fee or hourly basis, suggesting many firms utilize multiple fee models) and identified the most common areas of regulatory enforcement during the year, with failure to register as an investment advisor or investment advisor representative and fraud topping the list.
Also in industry news this week:
- A coalition of organizations representing financial advisors is pressing Congress to include tax breaks for financial advisory fees amidst expected negotiations to address the pending expiration of several provisions of the Tax Cuts and Jobs Act
- A recent survey indicates that client referrals remain the chief source of new clients for many financial advisory firms, many of which have expanded their client geographic footprint during the past few years
From there, we have several articles on investment and tax planning:
- As the cost of implementing a direct indexing strategy continues to drop, financial advisors can play a valuable role in helping clients determine whether it is a valuable opportunity
- How considering the transition costs involved in moving to a direct indexing approach can help advisors avoid creating a potentially costly tax bill for certain clients with significant embedded gains
- Why a “segmented ETF” strategy could be simpler and less expensive to implement than a direct indexing approach
We also have a number of articles on advisor marketing:
- A research-backed list of potential opportunities for advisors looking to attract next-gen clients, from encouraging online reviews and testimonials to crafting a consistent message to deploy through digital marketing channels
- Why assessing (and potentially adjusting) a firm’s client value proposition could drive more client growth than additional marketing spending in isolation
- How firms can craft an effective client survey to reveal the firm’s strengths and potential areas to improve to promote client retention and referrals
We wrap up with 3 final articles, all about books:
- 8 tips to make it easier to read more books, from creating a more conducive home environment to establishing accountability measures
- How to decide whether to move on from an unfinished book or whether to see it through until the end
- Why it’s often hard to retain details when reading non-fiction books and how including opportunities for regular, interactive feedback could lead to greater comprehension
Enjoy the ‘light’ reading!
