Weekend Reading For Financial Planners (August 1–2)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey of wealth management firms finds that while the number of respondents who have Artificial Intelligence (AI) as a dedicated tech budget line item increased from 14% to 67% in the past year, 65% said they have no defined AI success metric. Which suggests that while some firms might be looking to reap the potential benefits of using AI-enabled software tools, they might not be aware of the return (e.g., staff time saved that could be used for higher-value activities) they are receiving (or not) on this investment.

Also in industry news this week:

An analysis of SEC filings indicates that while RIAs saw strong AUM growth during the past year, many firms are struggling to add to their client headcount
A recent commentary calls into question CFP Board’s commitment to the public, suggesting that it is focusing more on the interests of its certificants and itself as an organization, potentially inhibiting the transformation of financial planning from an industry to a profession

From there, we have several articles on retirement planning:

An analysis identifies the key variables that drive satisfaction in retirement (with non-financial factors, including health and social connectivity, often serving as more powerful drivers than financial considerations)
Recent surveys suggest that financial advisors can add significant psychological value to clients when it comes to building confidence in their retirement spending
Why aiming to hit a specific retirement savings ‘number’ could create unnecessary stress and ultimately be counterproductive for many individuals

We also have a number of articles on practice management:

Why the move from ‘doer’ to manager can be a particularly challenging transition, and how firms can help new managers succeed (as well as improve the performance of team members in the process)
How to frame questions to team members or clients in a way that better elicits responses that they might be nervous to volunteer
Why “accidental business owners” are often the unhappiest financial advisors and how this group can evaluate their options to adjust their operations going forward

We wrap up with three final articles, all about education planning:

How financial advisors can support clients by helping them evaluate which types of college scholarships might be taxable (and by strategically allocating different funding sources to their most tax-efficient uses)
Why qualifying for need-based financial aid has become easier for families that own small businesses
How many colleges are attempting to offer greater pricing transparency at a time when the ultimate price students will pay has become more confusing

Enjoy the ‘light’ reading!