Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a Fidelity benchmarking study revealed that both small and large RIAs saw positive organic growth in 2022, helping to mitigate AUM declines resulting from weak market performance. The report also flagged that profit margins for RIAs remained relatively steady over the past several years (despite strong market performance over the period), with the trend of firms offering increasingly comprehensive service while also discounting fees cited as a potential cause.
Also in industry news this week:
- How the use of model investment portfolios can potentially save advisors time and boost client trust
- Why a recent IRS Private Letter Ruling could facilitate the emergence of zero-commission variable universal life policies (that RIAs can actually get paid a fee to advise on)
From there, we have several articles on housing:
- How aspiring homebuyers have a range of options, from intra-family loans to “house hacking”, to reduce the costs of buying a home amid elevated prices and interest rates
- Why a focus on resale value has led many home improvement projects to reflect popular, rather than personal, preferences
- How one potential homebuyer crunched the numbers to decide that homeownership was not the right investment for her
We also have a number of articles on practice management:
- Why fine-tuning their leadership skills can help owners of mid-sized firms take their business to the next level
- How rapidly growing firms can fall into cash flow traps, even if they are profitable
- A recent study identified common traits of advisors with high-growth practices, including being purposeful about organizational design and being willing to delegate tasks
We wrap up with 3 final articles, all about lending in the elevated interest rate environment:
- Why the spread between 10-year Treasury yields and 30-year mortgage rates has expanded in recent years, leading to higher interest costs for homebuyers
- How advisors can help clients evaluate whether, and which, private credit funds might be appropriate for their portfolio
- How tighter bank lending standards have contributed to a flood of private credit loans, which offer opportunities and potential perils for borrowers and investors alike
Enjoy the ‘light’ reading!
