Weekend Reading For Financial Planners (July 11–12)
Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey finds that women who work with a financial advisor are approximately 60% more likely to report that they feel confident in managing their finances compared to those who don’t, suggesting a valuable role for advisors working with this group that is controlling an increasing amount of wealth. Amongst the key areas where women surveyed are seeking professional help, retirement planning, investment planning, and estate planning topped the list, with the report identifying putting cash to work in the market as a potential lever for advisors to add value, as 63% of respondents with at least $500,000 in investible assets reported having more than $100,000 uninvested.
Also in industry news this week:
- The IRS unveiled a new automatic process to provide penalty relief for taxpayers with a history of filing and paying on time
- A survey of broker-dealer advisors finds that effective firm-wide rollouts of AI-powered tools are associated with more time to spend with clients as well as greater advisor satisfaction and loyalty
From there, we have several articles on asset location:
- While strategic asset location could add approximately 0.3% of portfolio value annually, the value of this approach depends on several factors unique to each client
- While some investors might hold foreign stocks in taxable accounts to be able to access the foreign tax credit, sizable dividends or capital gains distributions could still make tax-advantaged accounts an attractive location for these investments
- How an investor’s time horizon plays an important role in determining whether holding stocks in a taxable or tax-advantaged account might be the most tax-efficient choice
We also have a number of articles on estate planning:
- Why advisors and their clients might (re)consider certain trust strategies in a post-OBBBA world
- How irrevocable trusts can create challenges during divorce proceedings, and how advisors can help clients in this situation ensure they receive a fair financial outcome
- How a recent court case shows why following a retirement plan’s specific instructions for making beneficiary changes is necessary to avoid inadvertently leaving assets to an unintended recipient
We wrap up with three final articles, all about self-confidence:
- Ways financial advisors can overcome self-doubt, from finding a peer group (who might be going through similar issues) to building skills that are valuable for their specific clients
- How creating a financial planning “playbook” can help newer advisors organize the insights and wisdom they encounter during their early years on the job (and ultimately help them create their own unique style)
- Why making an impact in the lives of friends, family, and clients could provide a greater sense of meaning than achieving ‘fame’ amongst a broader (but more anonymous) audience
Enjoy the ‘light’ reading!
