Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent study finds that while financial advisory firms on the whole have seen strong AUM growth in recent years, strong market performance might be masking organic growth challenges among many firms (though, notably, RIAs have been growing their advisor headcounts and market share, often at the expense of wirehouses and large broker-dealers during this time). The report suggests that firms seeking to boost their organic growth could do so by, among other tactics, building a stronger brand (e.g., by identifying what truly differentiates them in the marketplace for advice), leveraging digital lead generation capabilities, and more effectively using CRM software. Which could ultimately lead to a virtuous cycle of attracting more new clients as well as talented advisors who seek to work at growing firms.
Also in industry news this week:
While the estate tax exemption is slated to rise to $15 million in 2026 under Republican-proposed legislation, estate planning will remain a key topic for advisors and their clients across the wealth spectrum, from managing possible state estate tax exposure to ensuring that clients’ end-of-life preferences are met
A recent survey finds that while Americans frequently go online for personal finance information, they are quite skeptical about the advice they find, creating an opening for financial advisors to provide high-quality content and potentially attract new clients in the process
From there, we have several articles on investment planning:
While so-called “smart beta” factor strategies have tended to underperform the broader market after gaining in popularity in the mid-2010s, the lower valuations associated with them today could foretell a brighter future
Recent data paint a bleak picture for the performance of actively managed funds (across U.S. and international equities, as well as in the fixed income space), highlighting the challenge of selecting funds that will outperform their benchmarks over an extended period of time
At a time when alternative investment strategies are increasingly being marketed to financial advisors and retail investors, the true magnitude of their purported benefits (particularly when weighed against the expenses and relative illiquidity often associated with them) could be unclear
We also have a number of articles on marketing:
Six challenging questions that a prospect might ask a potential advisor to dig deeper beyond the advisor’s standard pitch
A framework to help advisors develop their sales skills, even if they don’t see themselves as salespeople
A five-step prospecting process for advisors to sell their value with greater confidence and trust
We wrap up with three final articles, all about credit cards:
Holders of certain “ultra-premium” credit cards will see the annual fees on these cards go up this year, leading to a calculation of whether the benefits that come with them are worth the higher fees
How to optimize the value of credit card rewards points, whether an individual is looking to redeem them for more frequent or higher-end travel
Why credit card companies’ most important customers aren’t those who regularly pay interest on their balances, but rather big spenders who use higher-end cards
Enjoy the ‘light’ reading!
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