Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the Financial Planning Association and Money.com are planning to publish a “Best Financial Advisors” list based on advisors’ education, credentials, and experience, as well as harder-to-quantify areas such as trust factors and client communication. Going beyond FPA’s existing PlannerSearch tool, the narrowed-down list is meant to help consumers identify a focused subset of the most reputable planners. Though given that the list will be limited to FPA members who complete a detailed questionnaire, it might not be a truly comprehensive list of the ‘best’ planners… and even more impactfully, could upset current FPA members who pay their dues like every other member but are told they’re “not good enough” to be recognized by their own membership association as one of the “best” to Money.com’s millions of consumers?
Also in industry news this week:
- Legislation that has passed through the U.S. House of Representatives and is now being considered in the Senate would increase the number of firms classified as “small entities” and would require the SEC to assess the impact of proposed regulation on this newly enlarged class of investment advisers (which tend to have fewer compliance staff and resources available compared to larger firms)
- A recent study indicates that many retirees, particularly those that engage in a “partial retirement”, experience spending volatility at a time when sequence of return risk is the most threatening
From there, we have several articles on tax planning:
- The IRS released its annual “Dirty Dozen” list of tax scams, many of which target wealthy individuals, including abuses of certain trusts, monetized installment sales, and improperly valued art donations
- How advisors can help clients avoid falling prey to tax scams, from encouraging good cyber hygiene to serving as a second opinion on questionable tax strategies that have been pitched to the client
- How advisors can support clients in evaluating the qualitative and quantitative consequences of engaging in geographic arbitrage to reduce their state income tax bills
We also have a number of articles on clients going through a divorce:
- How advisors can add value for clients going through the divorce process, from offering an empathetic ear to analyzing the impact of a proposed division of assets
- The unique challenges (and rising incidence) of “gray divorce” and the key planning topics for advisors and their clients in this situation to address
- The ethical considerations for financial advisors when client couples are going through a divorce
We wrap up with three final articles, all about career satisfaction:
- How the concept of the “hedonic treadmill” can help explain why reaching professional goals often leads to fleeting satisfaction, and the alternative practices that can lead to enduring happiness
- Why letting go of the “pursuit of happiness” might be more likely to lead to greater contentment than trying to cross off as many items as possible from a ‘to-do’ list
- 3 mindset shifts that can help advisors find satisfaction from their (incremental) professional accomplishments
Enjoy the ‘light’ reading!
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