Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey indicates that clients of financial advisors are more confident than others about their financial preparedness for retirement and are more likely to have a financial plan in place that can weather the ups and downs of the economy (perhaps increasingly relevant given recent market volatility), indicating that advisors have an opportunity to frame the value of their advice in terms of the real-world outcomes their clients experience beyond their portfolio value, including greater confidence and peace of mind with their financial situation!
Also in industry news this week:
- With a potential SEC regulation requiring RIAs to engage in enhanced “know your customer” practices under consideration, the Investment Adviser Association is arguing for a more tailored approach to identifying risky clients and a longer implementation period to relieve the potential burden on RIAs
- The SEC is investigating the cash sweep programs at multiple wirehouses as these firms, as well as RIA custodians, consider raising their rates to make them more competitive with other (higher-yielding) alternatives for client cash
From there, we have several articles on retirement savings:
- The pros and cons of maxing out 401(k) contributions, from the ability to take a more flexible approach to tax planning to the potential to create liquidity challenges
- Why the tax benefits of investing in 401(k)s compared to taxable brokerage accounts might not be as significant as might be assumed in certain circumstances
- A proposed hierarchy of tax-preferenced savings vehicles, from “triple-tax-preferenced” Health Savings Accounts to (grantor) dynasty trusts
We also have a number of articles on estate planning:
- The potential advantages for individuals of gifting during their lifetime rather than waiting until their death, including the ability to ‘preview’ how a recipient will handle the gift before receiving a potentially larger inheritance
- While providing a “living inheritance” can be a tax-efficient way to give money to loved ones, it comes with a range of potential considerations, from the sustainability of the giver’s financial plan to the potential intra-family conflict it could cause
- Why gifting privately held business interests while alive can be a potentially tax-savvy move for business-owner clients
We wrap up with three final articles, all about couples and money:
- How understanding the deeper feelings that money generates can help advisors better navigate financial conversations with client couples
- How couples in America are organizing their finances today, from the decision of whether to have joint or separate accounts to how they divide expenses
- Why financial “translucency” can help couples with different spending philosophies navigate potential money conflicts
Enjoy the ‘light’ reading!
