Weekend Reading For Financial Planners (August 30–31)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent study found that the pool of wealth controlled by High-Net-Worth (HNW) individuals (with investible assets over $5 million) is expected to hit $30 trillion by 2028 alongside an increasing number of HNW households, presenting a growing opportunity for advisors to serve this group. Nonetheless, given competition among firms to do so, the report also indicates that firms are offering an increasing number of services that are valued by these clients (e.g., charitable planning and trust administration), suggesting that some firms are attempting to show how they’re ‘different’ through their service offering (though Kitces Research data suggest they will want to ensure they are receiving commensurate compensation given the increased staffing and time often required to provide these services!).

Also in industry news this week:

An analysis indicates that SEC enforcement actions have dropped significantly over the past several months compared to the same period last year, with recent cases frequently involving investor fraud related to securities offerings and investment advisers
A survey suggests that advisory firms not only are using referrals to find new clients, but also new employees as well

From there, we have several articles on retirement planning:

A review of common client case studies shows that the devil is in the details when it comes to deciding whether to make Roth contributions and conversions
Why the value of a (partial) Roth conversion is calculated using (true) marginal tax rates that take into account factors beyond a client’s current and future Federal income tax brackets
How advisors can evaluate Roth conversion analysis software to ensure it covers the full range of variables that can determine the impact of a potential conversion

We also have a number of articles on client communication:

Best practices in storytelling, which can help financial advisors build a stronger emotional connection with prospects and clients
Why summarizing clients’ comments back to them can help ensure that they feel understood by their advisor and build greater trust in the process
How financial advisors can use the tools of rhetoric to market and scale their practices efficiently

We wrap up with three final articles, all about the psychology of wealth:

How financial advisors can offer value for clients by helping them avoid the risks of trying to “get rich twice”
While prospects or clients who receive a financial windfall might be focused on maximizing the after-tax dollar value of the assets they’ve received, advisors can play a valuable role in encouraging them to consider how they actually want the money to impact their life
How building significant wealth can bring on a new set of problems to clients and how advisors are well-positioned to help them avoid potential pitfalls

Enjoy the ‘light’ reading!