Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the latest Fidelity RIA Benchmarking Study shows that while RIAs saw gains in AUM and revenue last year, their operating margins tightened, suggesting that rising expenses are cutting into firm profits. The study also looked at what “high performing” firms are doing differently than their peers, finding that these firms have a higher close rate on referred prospects, were better able to maintain pricing discipline, and had significantly lower expenses as a percentage of firm revenue.
Also in industry news this week:
- NASAA has proposed an amendment to its broker-dealer conduct model rule that would restrict the use of the terms “advisor” and “adviser” for broker-dealers and their registered representatives who are not also investment advisers or investment adviser representatives
- A recent study suggests that large RIA consolidators are becoming more like their large broker-dealer counterparts, not only in terms of the AUM they control, but also in the types of services they offer advisors under their umbrella
From there, we have several articles on tax planning:
- 7 year-end tax strategies advisors can consider to help their clients lower their tax bill this year and into the future
- Why seeking to minimize a client’s current-year tax bill isn’t always the optimal strategy when considering their lifetime tax obligations and their lifestyle needs
- While RMDs are a fact of life for many retired clients, advisors can help make the most of them by strategically selecting assets to fund the distribution to meet asset allocation and asset location goals
We also have a number of articles on advisor marketing:
- How lead segmentation can boost the effectiveness of an advisor’s email marketing campaign
- A 3-email sequence to effectively welcome new leads to an advisor’s email list and encourage them to engage with the firm
- A review of email marketing software providers, which can vary significantly based on features and price
We wrap up with 3 final articles, all about college planning:
- How, contrary to popular belief, the sticker price of college tuition (and particularly the average net price students actually pay) has lagged the broader inflation rate in recent years
- Why the increasing use of ‘merit aid’ among colleges makes high school grades important not only for college admission, but also for the breadth of schools they might consider
- A tool that lets users evaluate the return on investment of different degree programs, colleges, and majors shows that getting a degree still typically comes with a significant (though not universal) positive financial return
Enjoy the ‘light’ reading!
