Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that President Trump’s tariff announcement on Wednesday and the subsequent market decline have led many financial advisors to reassure clients that they are implementing their pre-determined plans for such circumstances. As they execute these plans, advisors appear to be taking different approaches depending on their investment philosophy and client base, with many preaching a ‘stay the course’ philosophy (perhaps highlighting that while equities are down, bonds have so far served their role as a portfolio ballast) and some finding potential tactical opportunities, from rebalancing client portfolios to identifying tax-loss harvesting opportunities.
Also in industry news this week:
Republicans in Congress appear to be eyeing an increase in the State And Local Tax (SALT) cap, possibly to $25,000 for an individual, amidst other potential changes as they look to pass sweeping tax legislation before key measures in the Tax Cuts and Jobs Act expire at the end of the year
Recent survey data sheds light on how advisors spend their time and view their value to clients, with plan preparation/presentation and investment management leading the way in both categories
From there, we have several articles on communicating with clients during market volatility:
How the messages advisors communicate to clients during market downturns can vary depending on whether a client is in the accumulation or drawdown phase
Methods for advisors to engage in one-to-many client communication during turbulent market periods, from regular email updates to video messages that allow clients to see and hear their advisor’s reaction
A step-by-step approach to handling calls from nervous clients during periods of market stress, including the potential value of leading with empathy and curiosity rather than hard data
We also have a number of articles on investment management:
How advisors can navigate private market investments with increasingly curious clients
While private credit ETFs potentially offer access to the asset class in a liquid and tax-efficient wrapper, an analysis highlights the difficulties of ensuring accurate pricing and liquidity of these funds given their relatively illiquid underlying assets
Steps advisors can take to evaluate whether different types of liquid alternative funds might be appropriate for client portfolios and the importance of fund selection when using them
We wrap up with three final articles, all about scams:
Potential action steps for advisors when they find out a scammer has set up an impostor profile of them online
How advisors can protect their parents (and clients) from increasingly sophisticated financial scams
How digging into the data can help advisors show clients that supposedly ‘hot’ investment strategies might not be as attractive as advertised
Enjoy the ‘light’ reading!
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