Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent study indicates that surveyed advisory firms that raised their fees in the last year saw almost identical 97% client retention rates as firms that lowered their fees (with the firms raising their fees bringing in more revenue in the first two years after doing so), suggesting that some growing firms might consider raising their fees (commensurate with the value they are providing their clients) to ensure they “scale up” (growing revenue at a faster pace than their expenses) rather than just ‘size up’.
Also in industry news this week:
- While the SEC has had the power to restrict mandatory arbitration clauses in RIA client agreements for more than a decade, an advisory committee meeting this week suggests support for such a measure isn’t unanimous
- CFP Board saw a record number of exam-takers during 2024, reflecting recognition of the professional and financial benefits that can come from earning the CFP certification (for advisors and their firms alike)
From there, we have several articles on retirement planning:
- Recent survey data indicate that many near-retirees have a difficult time estimating the amount of savings they need to retire, confirming the valuable role for advisors in retirement income planning
- A study suggests that pre-retirees underestimate their healthcare costs in retirement by more than 50%, indicating that advisors can add value by providing more realistic estimates and assessing the best Medicare coverage for their retired clients
- How advisors can work with clients to create realistic retirement budgets that reflect many categories of expenses clients might underestimate
We also have a number of articles on investment planning:
- A hierarchy of four types of investment mistakes, from “annoying” mistakes that lead to regret to “endgame” mistakes that can threaten an individual’s retirement
- Why a 50% rule of thumb could be an effective regret minimization tactic for a variety of financial planning decisions
- How advisors can support clients targeted by investment schemes that are “too good to be true”
We wrap up with three final articles, all about gift giving:
- How one firm creates “wow” moments for its clients when it comes to giving gifts to commemorate special occasions
- Creative client holiday gift ideas for advisory firms, from tickets to a local arts performance to charitable contributions to causes that are important to the clients
- Why buying a “special version of an everyday thing” can be a particularly effective strategy when it comes to giving gifts
Enjoy the ‘light’ reading!
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