Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that at a time when brokerage firms’ cash sweep programs come under increased scrutiny (and as the Federal Reserve has cut interest rates), Charles Schwab (the largest RIA custodian) continues to slash sweep rates for client cash (down to 0.05%), well below the rates available on other cash-like products, leaving advisors on the platform with the task of determining whether to move (at least some) client cash to higher-paying offerings (whether from Schwab or using emerging cash management platforms) to help clients earn more on their cash holdings and to ensure they are fulfilling their fiduciary responsibilities.
Also in industry news this week:
- A recent survey indicates that members of Generation X are struggling more with retirement planning compared to older Baby Boomers and younger Millennials, potentially offering opportunities for financial advisors to help Gen Xers create a plan to ‘catch up’ when it comes to both their retirement savings and their financial confidence
- According to a recent study, 37% of financial advisors are planning to retire within the next decade, opening up potential opportunities for the 48% of advisors who indicated interest in acquiring a practice
From there, we have several articles on retirement planning:
- Research into a variety of flexible retirement income strategies demonstrates the tradeoffs between current safe withdrawal rates, cash flow volatility, lifetime spending, and legacy interests
- An analysis suggests that those taking Social Security benefits early to invest them have a high breakeven rate to clear compared to those who delay benefits until Full Retirement Age or beyond
- Why taking a systematized approach to determining a client’s retirement income style preferences can help advisors offer a more personalized client experience
We also have a number of articles on advisor marketing:
- How relatively smaller RIAs are pursuing organic growth at a time when M&A activity is receiving significant attention, from expanding the platforms (and audiences) they reach to refining their service models
- Eight tips to help advisors get more “earned media” opportunities and demonstrate their expertise and credibility to prospective clients
- Best practices for client events, including creating a sense of community and offering opportunities to gather feedback and preferences from clients
We wrap up with three final articles, all about managing stress:
- How to keep up with the news without getting overly stressed, from deciding how deep to go into particular issues to setting time boundaries for news consumption
- How regular self-reflection can help identify potential stressors and begin the process of moving past them
- Why separating one’s thoughts from one’s sense of self can help avoid the stress that can arise from ‘overthinking’
Enjoy the ‘light’ reading!
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