Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a survey of financial planners by CFP Board found that respondents had a median income of $185,000 in 2024, with CFP professionals having 13% higher income than their peers (after controlling for a variety of factors), and that median pay can move significantly higher along with an individual’s years of experience and the number of individuals they manage. The survey also found that 84% of CFP professionals surveyed said they experience personal fulfillment with their careers, with 53% of respondents expressing “very high” fulfillment. Altogether, these findings suggest that financial planning can be a financially and personally rewarding career with a potential bump for those who make the investment in CFP certification (though it might take some time for such benefits to accrue).
Also in industry news this week:
A recent survey suggests that while many younger advisors seek well-defined career paths and training opportunities, many RIAs are falling short in these areas and are potentially hindering succession plans (which often languish in the planning stage)
Amidst the anticipated “Great Wealth Transfer” between generations in the coming years, advisory firms are considering how (and whether) to take action to encourage heirs to keep assets with the firm
From there, we have several articles on investment planning:
Common mistakes made by ETF investors, including trading during volatile or less-liquid periods and not considering the tax and reporting implications of certain funds
An analysis of data from the past 15 years indicates that, on the whole, lower-fee funds continue to outperform higher-fee funds in the same peer group
Why “Boomer candy” investment products that mitigate downside loss are sometimes based on strategies that are relatively simple (and less expensive) to implement by an investor or their advisor
We also have a number of articles on practice management:
Using the “Rule of 40” to measure a firm’s health and (if interested) make it more attractive to potential buyers or outside investors
Why leadership roles evolve as a firm grows and how a system of accountability can help avoid a decline in standards and results over time
How implementing a centralized operations team gives advisors and staff the opportunity to focus on what they do best and allow a firm to scale effectively
We wrap up with three final articles, all about optimization:
While the modern era provides countless ways to track and optimize one’s health, productivity, and finances, focusing on what matters most could offer upside in these areas while causing less stress
How optimizing for a single productivity metric could lead to challenges if the tactics that worked in the past to maximize it become less effective (and why exploring a broader range of paths to success could prove to be more fruitful)
How financial advisors can help clients develop a “good enough” mindset to increase their financial contentment
Enjoy the ‘light’ reading!
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